outcome model
Digital Twins as Synthetic Controls in Single-Arm Trials
Bertolini, Daniele, Fuller, Franklin, Smith, Aaron M., Walsh, Jonathan R., Zhuang, Run
Single-arm trials are an important study design for evaluating drug efficacy and safety without enrolling patients into a control arm. Although they do not provide the gold-standard evidence of randomized controlled trials, they are increasingly used in clinical development as they offer an efficient, ethical, and practical alternative. A wide variety of approaches can be used to construct control comparators and estimate treatment effects, from fixed comparators informed by clinical knowledge to data-based and model-based patient-level comparators, also known as synthetic controls. Powerful and flexible machine learning models can allow outcome-model-based synthetic controls to overcome key limitations of direct data-based approaches, yield more robust estimates of treatment effects, and provide a principled way to incorporate corrections or encode additional assumptions when external data are not directly comparable. In this work, we argue that outcome-model-based synthetic control arms are an important tool for single-arm trials. We focus on digital twins, personalized predictions of disease progression generated from machine learning models trained on historical datasets, which naturally leverage these flexible approaches. We review doubly robust estimators, present power and sample size formulas, and discuss trade-offs in selecting historical data for training and analysis. We also outline practical considerations for deploying digital twins within the framework of recent FDA draft guidance on the use of artificial intelligence in drug development. Finally, we reanalyze data from trials in amyotrophic lateral sclerosis and Huntington's disease to demonstrate the proposed methods.
Decomposition of Spillover Effects Under Misspecification:Pseudo-true Estimands and a Local--Global Extension
Applied work with interference typically models outcomes as functions of own treatment and a low-dimensional exposure mapping of others' treatments, even when that mapping may be misspecified. This raises a basic question: what policy object are exposure-based estimands implicitly targeting, and how should we interpret their direct and spillover components relative to the underlying policy question? We take as primitive the marginal policy effect, defined as the effect of a small change in the treatment probability under the actual experimental design, and show that any researcher-chosen exposure mapping induces a unique pseudo-true outcome model. This model is the best approximation to the underlying potential outcomes that depends only on the user-chosen exposure. Utilizing that representation, the marginal policy effect admits a canonical decomposition into exposure-based direct and spillover effects, and each component provides its optimal approximation to the corresponding oracle objects that would be available if interference were fully known. We then focus on a setting that nests important empirical and theoretical applications in which both local network spillovers and global spillovers, such as market equilibrium, operate. There, the marginal policy effect further decomposes asymptotically into direct, local, and global channels. An important implication is that many existing methods are more robust than previously understood once we reinterpret their targets as channel-specific components of this pseudo-true policy estimand. Simulations and a semi-synthetic experiment calibrated to a large cash-transfer experiment show that these components can be recovered in realistic experimental designs.
Policy Evaluation with Latent Confounders via Optimal Balance
Evaluating novel contextual bandit policies using logged data is crucial in applications where exploration is costly, such as medicine. But it usually relies on the assumption of no unobserved confounders, which is bound to fail in practice. We study the question of policy evaluation when we instead have proxies for the latent confounders and develop an importance weighting method that avoids fitting a latent outcome regression model. Surprisingly, we show that there exist no single set of weights that give unbiased evaluation regardless of outcome model, unlike the case with no unobserved confounders where density ratios are sufficient. Instead, we propose an adversarial objective and weights that minimize it, ensuring sufficient balance in the latent confounders regardless of outcome model. We develop theory characterizing the consistency of our method and tractable algorithms for it. Empirical results validate the power of our method when confounders are latent.
Causal Inference as Distribution Adaptation: Optimizing ATE Risk under Propensity Uncertainty
Standard approaches to causal inference, such as Outcome Regression and Inverse Probability Weighted Regression Adjustment (IPWRA), are typically derived through the lens of missing data imputation and identification theory. In this work, we unify these methods from a Machine Learning perspective, reframing ATE estimation as a \textit{domain adaptation problem under distribution shift}. We demonstrate that the canonical Hajek estimator is a special case of IPWRA restricted to a constant hypothesis class, and that IPWRA itself is fundamentally Importance-Weighted Empirical Risk Minimization designed to correct for the covariate shift between the treated sub-population and the target population. Leveraging this unified framework, we critically examine the optimization objectives of Doubly Robust estimators. We argue that standard methods enforce \textit{sufficient but not necessary} conditions for consistency by requiring outcome models to be individually unbiased. We define the true "ATE Risk Function" and show that minimizing it requires only that the biases of the treated and control models structurally cancel out. Exploiting this insight, we propose the \textbf{Joint Robust Estimator (JRE)}. Instead of treating propensity estimation and outcome modeling as independent stages, JRE utilizes bootstrap-based uncertainty quantification of the propensity score to train outcome models jointly. By optimizing for the expected ATE risk over the distribution of propensity scores, JRE leverages model degrees of freedom to achieve robustness against propensity misspecification. Simulation studies demonstrate that JRE achieves up to a 15\% reduction in MSE compared to standard IPWRA in finite-sample regimes with misspecified outcome models.
Doubly Robust Estimation of Causal Effects in Strategic Equilibrium Systems
We introduce the Strategic Doubly Robust (SDR) estimator, a novel framework that integrates strategic equilibrium modeling with doubly robust estimation for causal inference in strategic environments. SDR addresses endogenous treatment assignment arising from strategic agent behavior, maintaining double robustness while incorporating strategic considerations. Theoretical analysis confirms SDR's consistency and asymptotic normality under strategic unconfoundedness. Empirical evaluations demonstrate SDR's superior performance over baseline methods, achieving 7.6\%-29.3\% bias reduction across varying strategic strengths and maintaining robust scalability with agent populations. The framework provides a principled approach for reliable causal inference when agents respond strategically to interventions.