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A Machine-Learning-Compatible Omnibus Test for Treatment Effect Heterogeneity

Elia Lapenta, Anthony Strittmatter, Pedro Vergara Merino

arXiv 7 Jul 2026 · Econometrics

arXiv:2607.06412 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This study proposes a formal, computationally efficient nonparametric omnibus test for treatment-effect heterogeneity that is compatible with a broad class of estimators, including modern machine-learning methods. The test is designed for settings in which identification can rely on high-dimensional controls while heterogeneity is assessed with respect to a low-dimensional subset of covariates. We derive the test statistic's asymptotic null distribution and develop a bootstrap procedure that is efficient because it avoids re-estimating nuisance parameters in each iteration. The testing approach applies to multiple empirical designs, including randomized experiments, selection-on-observables, difference-in-differences, and instrumental-variables settings. Monte Carlo simulations show that the test attains near-nominal size under the null and exhibits good power against heterogeneous alternatives. We further illustrate the procedure using two empirical applications on retirement savings and trade liberalization.

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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
1Chernozhukov, V., Chetverikov, D., Demirer, M., Duflo, E., Hansen, C… (2018) Double/debiased machine learning for treatment and structural parameters1.00053100%
2Chang, N.-C (2020) Double/debiased machine learning for difference-in-differences models0.84333100%
3Bierens, H. J (2016) Econometric Model Specification0.81142100%
4Athey, S. and Imbens, G (2016) Recursive partitioning for heterogeneous causal effects0.64422100%
5Athey, S., Tibshirani, J., and Wager, S (2019) Generalized random forests0.64422100%
6Crump, R. K., Hotz, V. J., Imbens, G. W., and Mitnik, O. A (2008) Nonparametric tests for treatment effect heterogeneity0.64422100%
7Ding, P., Feller, A., and Miratrix, L (2016) Randomization inference for treatment effect variation0.64422100%
8Ding, P., Feller, A., and Miratrix, L (2019) Decomposing treatment effect variation0.64422100%
9Fan, Q., Hsu, Y.-C., Lieli, R. P., and Zhang, Y (2022) Estimation of conditional average treatment effects with high-dimensional data0.64422100%
10Heckman, J., Smith, J., and Clements, N (1997) Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts0.64422100%

Showing the top 10 of 40 scored citations.