Deep propensity network using a sparse autoencoder for estimation of treatment effects

Drawing causal estimates from observational data is problematic, because datasets often contain underlying bias (eg, discrimination in treatment assignment). To examine causal effects, it is important to evaluate what-if scenarios-the so-called "counterfactuals." We propose a novel deep learning architecture for propensity score matching and counterfactual prediction-the deep propensity network using a sparse autoencoder (DPN-SA)-to tackle the problems of high dimensionality, nonlinear/nonparallel treatment assignment, and residual confounding when estimating treatment effects.