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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

Causal Inference in Economic Research

This chapter examines the National Supported Work (NSW) Demonstration, an experimental program that was designed to assess the impact of subsidized and transitional work experience on the lives of disadvantaged individuals. The data of this experiment was first analyzed by Lalonde, so it is often referred to as the LaLonde dataset. We look at the LaLonde dataset in this chapter and discuss different approaches to estimate the causal effect. First, we try standardization using a linear regression model to control the confounders and estimate the causal effect. Next, we calculate the propensity scores to assess the extent of overlap between the distribution of the propensity scores in the treatment and control groups. The causal effect will then be calculated using the method of inverse probability of treatment weighting (IPTW). Finally, we use the method of propensity score matching to calculate the causal effect. All these methods are implemented...

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Causal Inference with Bayesian Networks
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