Policy Targeting under Network Interference.

This article studies the problem of optimally allocating treatments in the presence of spillover effects, using information from a (quasi-)experiment. I introduce a method that maximizes the sample analogue of average social welfare when spillovers occur. I construct semi-parametric welfare estimato...

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Detalles Bibliográficos
Publicado en:Review of Economic Studies Vol. 92; no. 2; pp. 1257 - 1293
Autor principal: Viviano, Davide
Formato: Artículo
Publicado: Oxford University Press / USA Mar2025
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This article studies the problem of optimally allocating treatments in the presence of spillover effects, using information from a (quasi-)experiment. I introduce a method that maximizes the sample analogue of average social welfare when spillovers occur. I construct semi-parametric welfare estimators with known and unknown propensity scores and cast the optimization problem into a mixed-integer linear program, which can be solved using off-the-shelf algorithms. I derive a strong set of guarantees on regret, i.e. the difference between the maximum attainable welfare and the welfare evaluated at the estimated policy. The proposed method presents attractive features for applications: (i) it does not require network information of the target population; (ii) it exploits heterogeneity in treatment effects for targeting individuals; (iii) it does not rely on the correct specification of a particular structural model; and (iv) it accommodates constraints on the policy function. An application for targeting information on social networks illustrates the advantages of the method.