Minimum Resource Threshold Policy Under Partial Interference

The paper introduces methods to estimate a policy that achieves a pre-defined, outcome-oriented target and accounts for potential spillover effects in a block due to partial interference. Specifically, our policy, which we call the minimum resource threshold policy (MRTP), suggests the minimum fraction of treated units required within a block to meet or exceed the target level of the outcome. We estimate the MRTP from empirical risk minimization associated with a novel, nonparametric, doubly robust loss function. We then characterize the statistical property of the estimated MRTP in terms of the excess risk bound. We apply our methodology to design a water, sanitation, and hygiene allocation policy for Senegal with the goal of increasing the proportion of households with no children experiencing diarrhea to a level exceeding a specified threshold. Our policy outperforms competing policies and offers new approaches to design allocation policies, especially in international development for communicable diseases.