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  • Book Overview & Buying Causal Inference with Bayesian Networks
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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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Index

Estimation using standardization

In this section we see how we can use standardization to estimate the causal effect. We will use standardization with a linear regression model to estimate the ATE of the Lalonde dataset.

Linear regression

As mentioned before, the presence of confounders doesn’t allow us to estimate the ATE of the Lalonde dataset since the treatment and control groups are systematically different. This is where standardization can help us. We can statistically control the confounders by including them in a linear regression model. Linear regression allows us to isolate the relationship between the treatment and the outcome groups by keeping all the confounders constant. First, we need to create a multiple linear regression model in which the dependent variable is the outcome (Y) and the regressor variables are the treatment variable (T) and the covariates (X):

(129)

Here, τ and βi are the model’s coefficients, and ε...

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Causal Inference with Bayesian Networks
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