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Causal Inference and Discovery in Python

Causal Inference and Discovery in Python

By : Aleksander Molak
4.5 (49)
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Causal Inference and Discovery in Python

Causal Inference and Discovery in Python

4.5 (49)
By: Aleksander Molak

Overview of this book

Causal methods present unique challenges compared to traditional machine learning and statistics. Learning causality can be challenging, but it offers distinct advantages that elude a purely statistical mindset. Causal Inference and Discovery in Python helps you unlock the potential of causality. You’ll start with basic motivations behind causal thinking and a comprehensive introduction to Pearlian causal concepts, such as structural causal models, interventions, counterfactuals, and more. Each concept is accompanied by a theoretical explanation and a set of practical exercises with Python code. Next, you’ll dive into the world of causal effect estimation, consistently progressing towards modern machine learning methods. Step-by-step, you’ll discover Python causal ecosystem and harness the power of cutting-edge algorithms. You’ll further explore the mechanics of how “causes leave traces” and compare the main families of causal discovery algorithms. The final chapter gives you a broad outlook into the future of causal AI where we examine challenges and opportunities and provide you with a comprehensive list of resources to learn more. By the end of this book, you will be able to build your own models for causal inference and discovery using statistical and machine learning techniques as well as perform basic project assessment.
Table of Contents (22 chapters)
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1
Part 1: Causality – an Introduction
7
Part 2: Causal Inference
14
Part 3: Causal Discovery

Exchangeability

In this section, we’ll introduce the exchangeability assumption (also known as the ignorability assumption) and discuss its relation to confounding.

Exchangeable subjects

The main idea behind exchangeability is the following: the treated subjects, had they been untreated, would have experienced the same average outcome as the untreated did (being actually untreated) and vice versa (Hernán & Robins, 2020).

Formally speaking, exchangeability is usually defined as:

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block"><mrow><mrow><mrow><mfenced open="{" close="}"><mrow><msup><mi>Y</mi><mn>0</mn></msup><mo>,</mo><msup><mi>Y</mi><mn>1</mn></msup></mrow></mfenced><mo>⫫</mo><mi mathvariant="normal">T</mi><mo>|</mo><mi mathvariant="normal">Z</mi></mrow></mrow></mrow></math>

In the preceding formula, <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:m="http://schemas.openxmlformats.org/officeDocument/2006/math"><mml:msup><mml:mrow><mml:mi>Y</mml:mi></mml:mrow><mml:mrow><mml:mn>0</mml:mn></mml:mrow></mml:msup></mml:math> and <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:m="http://schemas.openxmlformats.org/officeDocument/2006/math"><mml:msup><mml:mrow><mml:mi>Y</mml:mi></mml:mrow><mml:mrow><mml:mn>1</mml:mn></mml:mrow></mml:msup></mml:math> are counterfactual outcomes under <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:m="http://schemas.openxmlformats.org/officeDocument/2006/math"><mml:mi>T</mml:mi><mml:mo>=</mml:mo><mml:mn>0</mml:mn></mml:math> and <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:m="http://schemas.openxmlformats.org/officeDocument/2006/math"><mml:mi>T</mml:mi><mml:mo>=</mml:mo><mml:mn>1</mml:mn></mml:math> respectively, and <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:m="http://schemas.openxmlformats.org/officeDocument/2006/math"><mml:mi>Z</mml:mi></mml:math> is a vector of control variables. If you’re getting a feeling of confusion or even circularity when thinking about this definition, you’re most likely not alone. According to Pearl (2009), many people see this definition as difficult to understand.

At the same time, the core idea behind it is simple: the treated and the untreated need to share all the relevant characteristics...

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