Unconditional Randomization Tests for Interference

Abstract

In social networks or spatial experiments, one unit's outcome often depends on another's treatment, a phenomenon called interference. Researchers are interested in not only the presence and magnitude of interference but also its pattern based on factors like distance, neighboring units, and connection strength. However, the non-random nature of these factors and complex correlations across units pose challenges for inference. This paper introduces the partial null randomization tests (PNRT) framework to address these issues. The proposed method is finite-sample valid and applicable with minimal network structure assumptions, utilizing randomization testing and pairwise comparisons. Unlike existing conditional randomization tests, PNRT avoids the need for conditioning events, making it more straightforward to implement. Simulations demonstrate the method's desirable power properties and its applicability to general interference scenarios.