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Dynamic causal inference with time series data

Tanique Schaffe-Odeleye, Kōsaku Takanashi, Vishesh Karwa, Edoardo M. Airoldi, Kenichiro McAlinn

arXiv 31 Jan 2026 · Statistics — Methodology

arXiv:2602.00836 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We generalize the potential outcome framework to time series with an intervention by defining causal effects on stochastic processes. Interventions in dynamic systems alter not only outcome levels but also evolutionary dynamics -- changing persistence and transition laws. Our framework treats potential outcomes as entire trajectories, enabling causal estimands, identification conditions, and estimators to be formulated directly on path space. The resulting Dynamic Average Treatment Effect (DATE) characterizes how causal effects evolve through time and reduces to the classical average treatment effect under one period of time. For observational data, we derive a dynamic inverse-probability weighting estimator that is unbiased under dynamic ignorability and positivity. When treated units are scarce, we show that conditional mean trajectories underlying the DATE admit a linear state-space representation, yielding a dynamic linear model implementation. Simulations demonstrate that modeling time as intrinsic to the causal mechanism exposes dynamic effects that static methods systematically misestimate. An empirical study of COVID-19 lockdowns illustrates the framework's practical value for estimating and decomposing treatment effects.

Citation extraction

28
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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
1Bojinov, Iavor and Shephard, Neil (2019) Time series experiments and causal estimands: exact randomization tests and trading1.00064100%
2Bojinov, Iavor and Rambachan, Ashesh and Shephard, Neil (2021) Panel experiments and dynamic causal effects: A finite population perspective0.84333100%
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5Abadie, Alberto and Diamond, Alexis and Hainmueller, Jens (2010) Synthetic control methods for comparative case studies: Estimating the effect of California’s tobacco control program0.64422100%
6R. Prado and M. West (2010) Time Series: Modelling, Computation & Inference0.40511100%
7Revuz, Daniel and Yor, Marc (1999) Continuous Martingales and Brownian motion0.40511100%
8Rogers, L Chris G and Williams, David (2000) Diffusions, Markov processes, and martingales: Itô calculus0.40511100%
9S. Frühwirth-Schnatter (1994) Data augmentation and dynamic linear models0.40511100%
10M. West and P. J. Harrison (1997) Bayesian Forecasting & Dynamic Models0.40511100%

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Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1When are time series predictions causal? The potential system and dynamic causal effects0.40511