Network Effect Decomposition for Causal Effect Estimation under Network Interference

Zhirong Huang, Wenzhen Zhang, Guangquan Lu, Boyan Chen, Debo Cheng +1

Estimating causal effects from observational network data requires accounting for both individual treatment and neighborhood exposure. Existing outcome models commonly incorporate these intervention variables into a joint predictor and estimate causal effects through prediction contrasts, leaving the corresponding response components implicit. We propose the $\underline{N}$etwork $\underline{E}$ffect $\underline{D}$ecomposition $\underline{Net}$work (NEDNet), which parameterizes the conditional outcome response as a query-invariant pre-treatment baseline plus separate treatment- and exposure-response pathways. Path-specific neighborhood contextualization supplies local pre-treatment information to the two pathways. We characterize the fitted response through a unique reference-normalized decomposition, which is equivalent to a zero mixed treatment--exposure contrast. Experiments on semi-synthetic benchmarks derived from BlogCatalog and Flickr show that NEDNet achieves the lowest PEHE among the compared methods for individual, peer, and total effects across homogeneous and covariate-heterogeneous response settings.