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PO-Flow: Flow-based Generative Models for Sampling Potential Outcomes and Counterfactuals

Dongze Wu, David I. Inouye, Yao Xie

TL;DR

PO-Flow formulates potential outcomes and counterfactual reasoning within a continuous normalizing flow, enabling joint PO prediction, CATE estimation, and conditional counterfactual generation directly from observational data. Trained with Flow Matching, it learns the full PO densities and provides likelihood-based evaluation, uncertainty quantification, and most likely PO selection via log-densities. The framework includes a counterfactual recovery guarantee under certain monotone SCM assumptions and does not rely on explicitly specifying a structural causal model. Empirically, PO-Flow achieves state-of-the-art performance across multiple benchmark datasets while offering efficient training, fast sampling, and integrated density-based analyses for robust clinical decision support.

Abstract

Predicting potential and counterfactual outcomes from observational data is central to clinical decision-making, where physicians must weigh treatments for an individual patient rather than relying solely on average effects at the population level. We propose PO-Flow, a continuous normalizing flow (CNF) framework for causal inference that jointly models potential outcomes and counterfactuals. Trained via flow matching, PO-Flow provides a unified approach to average treatment effect estimation, individualized potential outcome prediction, and counterfactual prediction. Besides, PO-Flow directly learns the densities of potential outcomes, enabling likelihood-based evaluation of predictions. Furthermore, PO-Flow explores counterfactual outcome generation conditioned on the observed factual in general observational datasets, with a supporting recovery result under certain assumptions. PO-Flow outperforms modern baselines across diverse datasets and causal tasks in the potential outcomes framework.

PO-Flow: Flow-based Generative Models for Sampling Potential Outcomes and Counterfactuals

TL;DR

PO-Flow formulates potential outcomes and counterfactual reasoning within a continuous normalizing flow, enabling joint PO prediction, CATE estimation, and conditional counterfactual generation directly from observational data. Trained with Flow Matching, it learns the full PO densities and provides likelihood-based evaluation, uncertainty quantification, and most likely PO selection via log-densities. The framework includes a counterfactual recovery guarantee under certain monotone SCM assumptions and does not rely on explicitly specifying a structural causal model. Empirically, PO-Flow achieves state-of-the-art performance across multiple benchmark datasets while offering efficient training, fast sampling, and integrated density-based analyses for robust clinical decision support.

Abstract

Predicting potential and counterfactual outcomes from observational data is central to clinical decision-making, where physicians must weigh treatments for an individual patient rather than relying solely on average effects at the population level. We propose PO-Flow, a continuous normalizing flow (CNF) framework for causal inference that jointly models potential outcomes and counterfactuals. Trained via flow matching, PO-Flow provides a unified approach to average treatment effect estimation, individualized potential outcome prediction, and counterfactual prediction. Besides, PO-Flow directly learns the densities of potential outcomes, enabling likelihood-based evaluation of predictions. Furthermore, PO-Flow explores counterfactual outcome generation conditioned on the observed factual in general observational datasets, with a supporting recovery result under certain assumptions. PO-Flow outperforms modern baselines across diverse datasets and causal tasks in the potential outcomes framework.

Paper Structure

This paper contains 32 sections, 4 theorems, 53 equations, 4 figures, 9 tables, 3 algorithms.

Key Result

Proposition 4.3

Let Assumption assumptions hold. Assume that the exogenous noise $U\sim \mathrm{Unif}[0,1]$. Then there exists a continuously differentiable bijection function $\psi_X:\;\mathcal{U} \;\longrightarrow\; \mathcal{Z}$ that is independent of the treatment assignment $A$, i.e.,

Figures (4)

  • Figure 1: Illustration of counterfactual predictions. Left: two potential outcomes distribution. Right: base (noise) distribution.
  • Figure 2: Illustration of counterfactual predictions. Left: two potential outcomes distribution. Right: Base (noise) distribution.
  • Figure 3: Convergence of MSE and RMSE for predicted potential outcomes over the training iterations on the ACIC 2018, IHDP, and IBM datasets.
  • Figure : Adapted DiffPO for Counterfactual

Theorems & Definitions (7)

  • Remark 4.2
  • Proposition 4.3: Encoded $Z$ as a function of the exogenous noise $U$
  • Remark 4.4
  • Corollary 4.5: Counterfactual recovery under monotone SCMs
  • Remark 4.6
  • Proposition 4.7
  • Proposition A.1