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Correct the propensity-score identification proof - #487

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AliFozooni:agent/fix-propensity-score-proof-and-interpretation
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Correct the propensity-score identification proof#487
AliFozooni wants to merge 1 commit into
matheusfacure:masterfrom
AliFozooni:agent/fix-propensity-score-proof-and-interpretation

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@AliFozooni AliFozooni commented Aug 15, 2026

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Summary

  • distinguish propensity-score covariate balance from conditional ignorability of the potential outcomes
  • prove balance first, then prove preservation of ignorability under conditional exchangeability
  • state that positivity is a separate requirement and that propensity scores cannot repair unmeasured confounding
  • correct the adjacent IPTW derivation to use P(T=1 | X)=e(X), not the marginal treatment probability
  • derive the conditional IPW contrast and its ATE identity explicitly
  • correct the standardized-outcome interpretation and relabel the later 0.47 benchmark as an unadjusted difference in means

Why this matters

The previous proof treated potential-outcome ignorability given the propensity score as equivalent to a statement that establishes only covariate balance. The revised derivation separates the two results: it obtains balance from the propensity definition, then invokes conditional exchangeability and iterated expectations to establish ignorability given e(X).

The neighboring weighting derivation also multiplied a conditional expectation by the marginal P(T). That equality is false when treatment probability varies with X. It now uses the conditional probabilities e(X) and 1-e(X), shows the weighted conditional identity, and averages it over X to recover the ATE under the stated assumptions.

The introductory regression interpretation is corrected at the same time: the intercept is the untreated mean, while the intervention coefficient is the treated-minus-untreated difference.

Validation

  • built the complete Jupyter Book successfully after the proof and weighting corrections
  • checked the rendered math and surrounding narrative
  • validated notebook JSON and checked the diff for whitespace errors
  • modified only markdown cells 8, 12, and 24

The full build retains one unrelated pre-existing Chapter 21 lexer warning.

Closes #236
Closes #470

@AliFozooni
AliFozooni marked this pull request as ready for review August 15, 2026 17:59
@AliFozooni
AliFozooni force-pushed the agent/fix-propensity-score-proof-and-interpretation branch from b5a4d55 to abd62e0 Compare August 15, 2026 18:19
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Chapter 11 - Interpreting the causal treatment effect Issue: chapter 11

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