Causal mediation analysis aims to investigate how an intermediary factor, called a mediator, regulates the causal effect of a treatment on an outcome. With the increasing availability of measurements on a large number of potential mediators, methods for selecting important mediators have been proposed. However, these methods often assume the absence of unmeasured mediator-outcome confounding. We allow for such confounding in a linear structural equation model for the outcome and further propose an approach to tackle the mediator selection issue. To achieve this, we firstly identify causal parameters by constructing a pseudo proxy variable for unmeasured confounding. Leveraging this proxy variable, we propose a partially penalized method to identify mediators affecting the outcome. The resultant estimates are consistent, and the estimates of nonzero parameters are asymptotically normal. Motivated by these results, we introduce a two-step procedure to consistently select active mediation pathways, eliminating the need to test composite null hypotheses for each mediator that are commonly required by traditional methods. Simulation studies demonstrate the superior performance of our approach compared to existing methods. Finally, we apply our approach to genomic data, identifying gene expressions that potentially mediate the impact of a genetic variant on mouse obesity.
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