arXiv subjects

Jana Mareckova

Publications and source records attributed to Jana Mareckova.

5 recordsLinked to original sources

arXiv2025

Fairness-Aware and Interpretable Policy Learning

Fairness and interpretability play an important role in the adoption of decision-making algorithms across many application domains. These requirements are intended to avoid undesirable group differences and to alleviate concerns related to transparency. This paper proposes a framework that integrates fairness and interpretability into algorithmic decision making by combining data transformation with policy trees, a class of interpretable policy functions. The approach is based on pre-processing the data to remove dependencies between sensitive attributes and decision-relevant features, followed by a tree-based optimization to obtain the policy. Since data pre-processing compromises interpretability, an additional transformation maps the parameters of the resulting tree back to the original feature space. This procedure enhances fairness by yielding policy allocations that are pairwise independent of sensitive attributes, without sacrificing interpretability. Using administrative data from Switzerland to analyze the allocation of unemployed individuals to active labor market programs (ALMP), the framework is shown to perform well in a realistic policy setting. Effects of integrating fairness and interpretability constraints are measured through the change in expected employment outcomes. The results indicate that, for this particular application, fairness can be substantially improved at relatively low cost.

econ.EM↗

arXiv2025

From Average Effects to Targeted Assignment: A Causal Machine Learning Analysis of Swiss Active Labor Market Policies

Active labor market policies are widely used by the Swiss government, enrolling over half of all unemployed individuals. This paper evaluates the effectiveness of Swiss programs in improving employment and earnings outcomes using causal machine learning and rich administrative data on unemployed individuals in 2014 and 2015, including detailed labor market histories and other covariates. The findings for Swiss citizens and immigrants with permanent residency indicate a small positive average effect of a Temporary Wage Subsidy program on employment and earnings in the third year after program start. In contrast, Basic Courses, such as job application training, exhibit negative effects on both outcomes over the same period. No significant impacts are found for Employment Programs conducted outside the regular labor market or for Training Courses such as language or computer classes. The programs are most effective for individuals with a non-EU migration background, while Temporary Wage Subsidies also benefit those with lower educational attainment. Finally, shallow policy trees provide practical guidance for improving the targeting of program assignments.

econ.GN↗

arXiv2025

Comprehensive Causal Machine Learning

Uncovering causal effects in multiple treatment setting at various levels of granularity provides substantial value to decision makers. Comprehensive machine learning approaches to causal effect estimation allow to use a single causal machine learning approach for estimation and inference of causal mean effects for all levels of granularity. Focusing on selection-on-observables, this paper compares three such approaches, the modified causal forest (mcf), the generalized random forest (grf), and double machine learning (dml). It also compares the theoretical properties of the approaches and provides proven theoretical guarantees for the mcf. The findings indicate that dml-based methods excel for average treatment effects at the population level (ATE) and group level (GATE) with few groups, when selection into treatment is not too strong. However, for finer causal heterogeneity, explicitly outcome-centred forest-based approaches are superior. The mcf has three additional benefits: (i) It is the most robust estimator in cases when dml-based approaches underperform because of substantial selection into treatment; (ii) it is the best estimator for GATEs when the number of groups gets larger; and (iii), it is the only estimator that is internally consistent, in the sense that low-dimensional causal ATEs and GATEs are obtained as aggregates of finer-grained causal parameters.

econ.EM↗

arXiv2022

Modified Causal Forest

Uncovering the heterogeneity of causal effects of policies and business decisions at various levels of granularity provides substantial value to decision makers. This paper develops estimation and inference procedures for multiple treatment models in a selection-on-observed-variables framework by modifying the Causal Forest approach (Wager and Athey, 2018) in several dimensions. The new estimators have desirable theoretical, computational, and practical properties for various aggregation levels of the causal effects. While an Empirical Monte Carlo study suggests that they outperform previously suggested estimators, an application to the evaluation of an active labour market pro-gramme shows their value for applied research.

econ.EM↗

arXiv2019

Shrinkage for Categorical Regressors

This paper introduces a flexible regularization approach that reduces point estimation risk of group means stemming from e.g. categorical regressors, (quasi-)experimental data or panel data models. The loss function is penalized by adding weighted squared l2-norm differences between group location parameters and informative first-stage estimates. Under quadratic loss, the penalized estimation problem has a simple interpretable closed-form solution that nests methods established in the literature on ridge regression, discretized support smoothing kernels and model averaging methods. We derive risk-optimal penalty parameters and propose a plug-in approach for estimation. The large sample properties are analyzed in an asymptotic local to zero framework by introducing a class of sequences for close and distant systems of locations that is sufficient for describing a large range of data generating processes. We provide the asymptotic distributions of the shrinkage estimators under different penalization schemes. The proposed plug-in estimator uniformly dominates the ordinary least squares in terms of asymptotic risk if the number of groups is larger than three. Monte Carlo simulations reveal robust improvements over standard methods in finite samples. Real data examples of estimating time trends in a panel and a difference-in-differences study illustrate potential applications.

econ.EM↗