Causal clustering: design of cluster experiments under network interference

Date
-
Speaker
Lihua Lei, Assistant Professor of Economics, Stanford Graduate School of Business
Location
Encina Hall West, Room 400
Abstract

This paper studies the design of cluster experiments to estimate the global treatment effect in the presence of network spillovers. We provide a framework to choose the clustering that minimizes the worst-case mean-squared error of the estimated global effect. We show that optimal clustering solves a novel penalized min-cut optimization problem computed via off-the-shelf semi-definite programming algorithms. Our analysis also characterizes simple conditions to choose between any two cluster designs, including choosing between a cluster or individual-level randomization. We illustrate the method's properties using unique network data from the universe of Facebook's users and existing data from a field experiment.

Biography

Lihua Lei is an Assistant Professor of Economics at Stanford Graduate School of Business (GSB), an Assistant Professor of Statistics (by courtesy), and a Faculty Fellow at Institute for Economic Policy Research (SIEPR).

He obtained his Ph.D. in Statistics at UC Berkeley, advised by Professors Peter Bickel and Michael Jordan and worked as a postdoctoral researcher in the Statistics Department at Stanford University, advised by Professor Emmanuel Candès.

He is currently a co-organizer of the International Seminar on Selective Inference (with Will Fithian, Rina Barber and Daniel Yekutieli).