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Graph Neural Networks for Generalized Mundlak Estimator under Network Confounding

Lianyan Fu, Rui Wang, Zihan Zhang

arXiv 28 May 2026 · Econometrics

arXiv:2605.29238 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes a generalized Mundlak estimator based on graph neural networks (GME-GNN). The estimator is designed to mitigate bias arising from group-level heterogeneity and to accommodate within-group dependence among individuals. Traditional fixed-effects models handle group heterogeneity via group-specific intercepts, but require overly strict linear additivity and intra-group independence assumptions, and are confined to within-group comparisons. Rather than relying on intercepts, GME-GNN uses aggregated group-level balancing statistics to fully control between-group confounding, enabling valid cross-group comparisons and relaxing linearity constraints. It further employs graph neural network message-passing to adaptively learn nonlinear representations and capture intra-group interaction effects. Theoretical analysis shows that the estimator satisfies double robustness and is asymptotically normal. Simulation and empirical studies confirm its performance.

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distinct cited
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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
1Leung, Michael P and Loupos, Pantelis (2022) Graph neural networks for causal inference under network confounding1.00093100%
2Kojevnikov, D. and Marmer, V. and Song, K (2021) Limit Theorems for Network Dependent Random Variables1.00063100%
3Arkhangelsky, Dmitry and Imbens, Guido W (2024) Fixed effects and the generalized Mundlak estimator0.87492100%
4Mundlak, Yair (1978) On the pooling of time series and cross section data0.64422100%
5Leung, Michael P (2022) Causal inference under approximate neighborhood interference0.58531100%
6Wainwright, Martin J and Jordan, Michael I (2008) Graphical models, exponential families, and variational inference0.51121100%
7Neyman, J. and Scott, E. L (1948) Consistent Estimates Based on Partially Consistent Observations0.40511100%
8Altonji, Joseph G and Elder, Todd E and Taber, Christopher R (2005) Selection on observed and unobserved variables: Assessing the effectiveness of Catholic schools0.40511100%
9Barron, Andrew R and Sheu, Chyong-Hwa (1991) Approximation of density functions by sequences of exponential families0.40511100%
10Corso, G. and Cavalleri, L. and Beaini, D. and Liò, P. and Veli ckov… (2020) Principal Neighbourhood Aggregation for Graph Nets0.40511100%

Showing the top 10 of 22 scored citations.