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    Area of Science:

    • Causal inference
    • Machine learning
    • Statistics

    Background:

    • Inferring causal effects from observational data is challenging due to latent confounders.
    • The instrumental variable (IV) approach is a key method for addressing this, but often requires known IVs or strong assumptions.
    • Existing methods limit the applicability of IV analysis.

    Purpose of the Study:

    • To propose a novel method for causal effect estimation under latent confounding.
    • To relax the requirement of a known instrumental variable (IV).
    • To develop a robust IV-based estimator using representation learning.

    Main Methods:

    • A variational autoencoder (VAE)-based disentangled representation learning approach is proposed.
    • The method learns an IV representation from data with latent confounders.
    • This IV representation is then used for unbiased causal effect estimation.

    Main Results:

    • The proposed algorithm successfully learns an IV representation from observational data.
    • It enables unbiased estimation of causal effects in the presence of latent confounders.
    • Experiments show superior performance compared to existing IV and VAE-based estimators.

    Conclusions:

    • The VAE-based disentangled representation learning method offers a practical solution for causal inference with unknown IV proxies.
    • This approach enhances the applicability of instrumental variable methods.
    • The findings demonstrate significant improvements in estimating causal effects from complex observational data.