How Do Applied Researchers Use the Causal Forest? A Methodological Review

Abstract

Summary This methodological review examines the use of the causal forest method by applied researchers across 133 peer‐reviewed papers. It shows that the emerging best practice relies heavily on the approach and tools created by the original authors of the causal forest such as their grf package and the approaches given by them in examples. Generally, researchers use the causal forest on a relatively low‐dimensional dataset relying on observed controls or in some cases experiments to identify effects. There are several common ways to then communicate results–by mapping out the univariate distribution of individual‐level treatment effect estimates, displaying variable importance results for the forest and graphing the distribution of treatment effects across covariates that are important either for theoretical reasons or because they have high variable importance. Some deviations from this common practice are interesting and deserve further development and use. Others are unnecessary or even harmful. The paper concludes by reflecting on the emerging best practice for causal forest use and paths for future research.