On the Effects of Irrelevant Variables in Treatment Effect Estimation with Deep Disentanglement
Ahmad Saeed Khan, Erik Schaffernicht, Johannes Andreas Stork
TL;DR
The paper tackles treatment effect estimation from observational data by addressing the role of irrelevant pre-treatment variables. It introduces DRI-ITE, a four-factor disentanglement framework that explicitly models an irrelevant latent space $\\Omega$ via an autoencoder-based reconstruction, coupled with orthogonal regularization to prevent leakage into other latent factors $\\\Gamma,\\\Delta,\\\Upsilon$. The approach integrates four encoders, regression/classification heads, and a reconstruction objective to robustly identify latent factors and improve ITE predictions, demonstrated on synthetic data and real benchmarks IHDP and Jobs, with consistent gains in PEHE and policy risk as $\\\Omega$ grows. The results suggest that explicit handling of irrelevant variables yields more reliable counterfactual estimates in high-dimensional settings, offering practical benefits for observational causal inference frameworks.
Abstract
Estimating treatment effects from observational data is paramount in healthcare, education, and economics, but current deep disentanglement-based methods to address selection bias are insufficiently handling irrelevant variables. We demonstrate in experiments that this leads to prediction errors. We disentangle pre-treatment variables with a deep embedding method and explicitly identify and represent irrelevant variables, additionally to instrumental, confounding and adjustment latent factors. To this end, we introduce a reconstruction objective and create an embedding space for irrelevant variables using an attached autoencoder. Instead of relying on serendipitous suppression of irrelevant variables as in previous deep disentanglement approaches, we explicitly force irrelevant variables into this embedding space and employ orthogonalization to prevent irrelevant information from leaking into the latent space representations of the other factors. Our experiments with synthetic and real-world benchmark datasets show that we can better identify irrelevant variables and more precisely predict treatment effects than previous methods, while prediction quality degrades less when additional irrelevant variables are introduced.
