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Causal Inference on Networks under Continuous Treatment Interference

Davide Del Prete (), Laura Forastiere and Valerio Leone Sciabolazza

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Abstract: This paper presents a methodology to draw causal inference in a non-experimental setting subject to network interference. Specifically, we develop a generalized propensity score-based estimator that allows us to estimate both direct and spillover effects of a continuous treatment, which spreads through weighted and directed edges of a network. To showcase this methodology, we investigate whether and how spillover effects shape the optimal level of policy interventions in agricultural markets. Our results show that, in this context, neglecting interference may lead to a downward bias when assessing policy effectiveness.

Date: 2020-04
New Economics Papers: this item is included in nep-ecm, nep-net and nep-soc
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