Local causal effects with continuous exposures: A matching estimator for the average causal derivative effect

Abstract: The estimation of causal effects is a fundamental goal in the field of causal inference. However, it is challenging for various reasons. One reason is that the exposure (or treatment) is naturally continuous in many real-world scenarios. When dealing with continuous exposure, dichotomizing the exposure variable based on a pre-defined threshold may result in a biased understanding of causal relationships. In this paper, we propose a novel causal inference framework that can measure the causal effect of continuous exposure. We define the expectation of a derivative of potential outcomes at a specific exposure level as the average causal derivative effect. Additionally, we propose a matching method for this estimator and propose a permutation approach to test the hypothesis of no local causal effect. We also investigate the asymptotic properties of the proposed estimator and examine its performance through simulation studies. Finally, we apply this causal framework in a real data example of Chronic Obstructive Pulmonary Disease (COPD) patients.