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Under review as a conference paper at ICLR 2027

A Foundation Model for Policy In-Context Longitudinal Causal Effect Estimation

Abstract

Longitudinal causal effect estimation is complicated by time-varying confounding and treatment-confounder feedback loops. Existing methods generally require data-specific nuisance-model fitting, and many are tailored to prespecified treatment sequences or prediction horizons, leading to time-consuming computation at deployment. We introduce *Policy In-Context Longitudinal causal Effect estimation with Prior-data Fitted Networks* (**PICLE-PFN**), the first foundation model for longitudinal causal effect estimation that supports *dynamic* treatment policies. PICLE-PFN represents target policies through in-context history-decision demonstrations, providing a unified interface for a broad class of treatment policies. Pretrained over synthetic data sampled from longitudinal structural causal models, PICLE-PFN amortizes causal effect estimation across datasets, policies, and horizons. Given a new observational dataset and target policy, it directly predicts conditional average potential outcomes (CAPOs) in one forward pass without task-specific training or hyperparameter tuning. Across synthetic and semi-synthetic longitudinal benchmarks, PICLE-PFN achieves comparable and lower RMSE and substantially improved uncertainty calibration, compared to state-of-the-art conventional estimators trained and tuned separately for each dataset.

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