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Causal Inference with Bayesian Networks

Causal Inference with Bayesian Networks

By : Yousri El Fattah, Reza Bagheri
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Causal Inference with Bayesian Networks

Causal Inference with Bayesian Networks

By: Yousri El Fattah, Reza Bagheri

Overview of this book

This practical guide explores Bayesian networks, graphical models, and causal inference for probabilistic reasoning and treatment effect estimation using real-world data. You’ll learn Bayesian networks, conditional independence, structural causal models (SCM), and intervention-based reasoning for causal analysis. The book explains how graphical models support probabilistic inference, decision-making, and knowledge representation across healthcare, economics, epidemiology, finance, and social sciences. You’ll work with probabilistic inference methods such as variable elimination, tree clustering, and Bayesian network reasoning. For causal inference, the book covers Pearl’s do-calculus, backdoor and front-door criteria, causal effect identification, and treatment effect estimation using observational data. You’ll also explore the potential outcomes framework and machine learning approaches for causal inference, including meta-learners for estimating conditional average treatment effects and heterogeneous treatment effects. Practical examples and exercises in R and Python help reinforce concepts and build implementation skills for causal modeling workflows. By the end of the book, you’ll be able to design Bayesian network models, perform probabilistic and causal inference, and develop practical causal analysis applications for evidence-based decision-making.
Table of Contents (18 chapters)
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16
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Index

Specifying generative data models

In this section, we introduce a causal model that serves as a generative data model for generating a synthetic dataset, which we use throughout the remainder of this chapter. The causal model is designed to simulate use case causal effect relations with heterogeneous effects. Following this, we will explain the steps for implementing the causal model using Python. Afterward, we will engage you in a practice session using Python, where we provide a walkthrough of the steps to generate a synthetic dataset with heterogeneous treatment effects and to analyze the dataset’s statistical properties to illustrate the heterogeneity of the simulated causal effects represented by the dataset.

Causal model with heterogeneous treatment effects

We previously mentioned the missing data problem, which is the core issue in causal inference with observational data. The gist of the problem is that the actual individual treatment effects are never directly...

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