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Inference on Optimal Dynamic Policies via Softmax Approximation

Qizhao Chen, Morgane Austern, Vasilis Syrgkanis

arXiv 8 Mar 2023 · Econometrics

arXiv:2303.04416 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Estimating optimal dynamic policies from offline data is a fundamental problem in dynamic decision making. In the context of causal inference, the problem is known as estimating the optimal dynamic treatment regime. Even though there exists a plethora of methods for estimation, constructing confidence intervals for the value of the optimal regime and structural parameters associated with it is inherently harder, as it involves non-linear and non-differentiable functionals of unknown quantities that need to be estimated. Prior work resorted to sub-sample approaches that can deteriorate the quality of the estimate. We show that a simple soft-max approximation to the optimal treatment regime, for an appropriately fast growing temperature parameter, can achieve valid inference on the truly optimal regime. We illustrate our result for a two-period optimal dynamic regime, though our approach should directly extend to the finite horizon case. Our work combines techniques from semi-parametric inference and $g$-estimation, together with an appropriate triangular array central limit theorem, as well as a novel analysis of the asymptotic influence and asymptotic bias of softmax approximations.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1James M Robins (2004) Optimal structural nested models for optimal sequential decisions1.00084100%
2Bibhas Chakraborty, Susan Murphy, and Victor Strecher (2010) Inference for non-regular parameters in optimal dynamic treatment regimes0.87452100%
3Greg Lewis and Vasilis Syrgkanis (2020) Double/debiased machine learning for dynamic treatment effects via g-estimation self0.84333100%
4Victor Chernozhukov, Whitney Newey, Rahul Singh, and Vasilis Syrgkanis (2020) Adversarial estimation of riesz representers self0.7375440%
5Susan A Murphy (2003) Optimal dynamic treatment regimes0.73732100%
6Kevin Gunn, Wenbin Lu, and Rui Song (2022) Adaptive semi-supervised inference for optimal treatment decisions with electronic medical record data0.64422100%
7Chengchun Shi, Shikai Luo, Yuan Le, Hongtu Zhu, and Rui Song (2022) Statistically efficient advantage learning for offline reinforcement learning in infinite horizons0.64422100%
8Rui Song, Shikai Luo, Donglin Zeng, Hao Helen Zhang, Wenbin Lu, and… (2017) Semiparametric single-index model for estimating optimal individualized treatment strategy0.64422100%
9Peter J Bickel and Yaacov Ritov (1988) Estimating integrated squared density derivatives: Sharp best order of convergence estimates0.51121100%
10Victor Chernozhukov, Denis Chetverikov, Mert Demirer, Esther Duflo,… (2018) Double/debiased machine learning for treatment and structural parameters, 20180.51121100%

Showing the top 10 of 99 scored citations.

Cited by, within the corpus

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Citing paperIntensityMentionsSections
1Debiased Machine Learning when Nuisance Parameters Appear in Indicator Functions0.51121
2Policy Learning with Distributional Welfare0.40511
3Inference for an Algorithmic Fairness-Accuracy Frontier0.40511
4On the Lower Confidence Band for the Optimal Welfare in Policy Learning0.40511
5Inference on Optimal Policy Values and Other Irregular Functionals via Softmax Smoothing0.40511
6Policy Learning with Abstention0.40511