๐ค AI Summary
This study addresses the core challenge in causal inference of accurately identifying true causal effects in settings characterized by high-dimensional observational data and endogenous selection. Leveraging both experimental data from a large technology companyโs new feature rollout and observational data from usersโ self-selection into the feature, this work provides the first joint validation of causal machine learning methods in a real-world product environment. By integrating propensity score modeling, doubly robust estimation, and high-dimensional covariate adjustment, the research demonstrates that careful modeling substantially improves the accuracy of causal effect estimates. The findings not only confirm the practical feasibility of modern causal inference techniques but also distill a set of best practices for enhancing estimation credibility, offering an empirical benchmark and actionable guidance for high-dimensional causal inference.
๐ Abstract
Recent developments in causal machine learning methods have made it easier to estimate flexible relationships between confounders, treatments and outcomes, making unconfoundedness assumptions in causal analysis more palatable. How successful are these approaches in recovering ground truth baselines? In this paper we analyze a new data sample including an experimental rollout of a new feature at a large technology company and a simultaneous sample of users who endogenously opted into the feature. We find that recovering ground truth causal effects is feasible -- but only with careful modeling choices. Our results build on the observational causal literature beginning with LaLonde (1986), offering best practices for more credible treatment effect estimation in modern, high-dimensional datasets.