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When are time series predictions causal? The potential system and dynamic causal effects

Jacob Carlson, Neil Shephard

arXiv 20 Mar 2026 · Econometrics

arXiv:2603.20394 · PDF · OpenAlex · Extracted main text

Abstract

The potential system is a nonparametric time series model for assessing the causal impact of moving an assignment at time $t$ on an outcome at future time $t+h$, accounting for the presence of features. The potential system provides nonparametric content for, e.g., time series experiments, time series regression, local projection, impulse response functions and SVARs. It closes a gap between time series causality and nonparametric cross-sectional causal methods, and provides a foundation for many new methods which have causal content.

Citation extraction

85
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118
in-text mentions
85
distinct cited
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main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 86% of the source is main text. Read the extracted text to check this.

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, I. and N. Shephard (2019) Time series experiments and causal estimands: exact randomization tests and trading1.00053100%
2Rambachan, A. and N. Shephard (2021) When do common time series estimands have nonparametric causal meaning?0.92844100%
3Imbens, G. and D. B. Rubin (2015) Causal Inference for Statistics, Social and Biomedical Sciences: An Introduction0.81142100%
4Hernan, M. A. and J. M. Robins (2025) Causal Inference0.73732100%
5Lin, Z. and P. Ding (2025) Unifying regression-based and design-based causal inference in time-series experiments0.73732100%
6Stock, J. H. and M. W. Watson (2018) Identification and estimation of dynamic causal effects in macroeconomics0.73732100%
7Angrist, J. D., Ò. Jordà, and G. M. Kuersteiner (2018) Semiparametric estimates of monetary policy effects: string theory revisited0.64422100%
8Angrist, J. D. and G. M. Kuersteiner (2011) Causal effects of monetary shocks: Semiparametric conditional independence tests with a multinomial propensity score0.64422100%
9Arkhangelsky, D. and G. Imbens (2024) Causal models for longitudinal and panel data0.64422100%
10Ballinari, D. and A. Wehrli (2024) Semiparametric inference for impulse response functions using double/debiased machine learning0.64422100%

Showing the top 10 of 85 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Calibrated Horizon-Weighted Local Projection Designs for Markov Switchbacks0.64422