Module 5 — Modern Causal Analysis

Use flexible prediction, heterogeneity, sensitivity and transportability without weakening identification discipline

Module 5 — Modern Causal Analysis

Modern causal methods are most useful when they separate two tasks:

identificationwhy a counterfactual is credible+flexible estimationhow complex relationships are learned.\underbrace{\text{identification}}_{\text{why a counterfactual is credible}} \quad+ \underbrace{\text{flexible estimation}}_{\text{how complex relationships are learned}}.

Machine learning helps with the second task. Cross-fitting and orthogonal scores reduce sensitivity to nuisance-model error; they do not remove unmeasured confounding, interference or poor overlap.

Prepare

Bring one causal design from Modules 0–3. Mark:

  • the target parameter;
  • the treatment-assignment assumption;
  • nuisance functions such as outcome regression or propensity score;
  • variables available before treatment;
  • intended target population.

Route

  1. Double Machine Learning: orthogonalisation and cross-fitting.
  2. Heterogeneity and Policy Learning: CATEs, honest discovery and constrained decisions.
  3. Sensitivity and Partial Identification: replace binary robustness claims with calibrated ranges.
  4. External Validity: move an effect across populations, treatments and contexts.

Workshop: model card for a causal estimator

Teams construct a model card with six fields:

FieldRequired statement
estimandATE, ATT, CATE, policy value or transported effect
identificationexperiment, conditional exchangeability, IV, DID or other design
learnersnuisance functions and why flexibility is needed
sample splittingtraining, tuning and estimation roles
stress testsoverlap, split stability, sensitivity and subgroup support
decision boundarycost, capacity, fairness and target population

Follow-up deliverable

Submit either a cross-fitted estimate with a split-stability audit or a calibrated sensitivity analysis. Postgraduate work should state the orthogonal moment or identified set and explain the rate/regularity conditions in words.

Start with Double Machine Learning

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