Inferring counterfactuals about individuals requires a model that is 
stronger than a Bayesian network.  It requires a model of the causal 
mechanism itself.  We can have exactly the same conditional 
probabilities and draw different inferences about causality, 
depending on the (often untestable) assumptions we make about how the 
(unobserved and often unobservable) casual mechanism operates.

For example, suppose we modeled John's headache using a noisy-OR, 
where coffee was one cause and there is a list of other causes, each 
with an independent probability of triggering a headache.  We can 
collapse this into a CPT on observable variables only:

     John_Drank_Coffee --> John_Headache <-- Other_causes

We can also expand the model to include the unobservable triggers:

     John_Drank_Coffee --> Coffee-Triggers_Headache
                              |
                              v
                       John_Headache
                              ^
                              |
                              Other_Triggers_Headache <-- Other_causes


The posterior probability of Other_Triggers_Headache is true given 
that John_Headache and John_Drank_Coffee are both true is the 
probability that John would still have had a headache if he had not 
drunk the coffee.

But that is only if we accept the causal claims of the noisy-OR.  We 
can define an alternative causal model with the VERY SAME joint 
probability distribution on observables, that makes different 
counterfactual claims.  For example, we could draw an arc from 
Coffee_Triggers_Headache to Other_Triggers_Headache, and change the 
probability to 100% that Other_Triggers_Headache is true when 
Coffee_Triggers_Headache is true, but leave everything else as it is. 
Check it out.  This doesn't change the joint distribution on (Coffee, 
Other_causes, Headache).  But it makes different counterfactual 
claims.  The claim this alternate model makes is that if John drinks 
coffee, and there is also some other cause of a headache present, and 
the coffee triggers a headache, then so does the other cause, so that 
if you removed the coffee, there would still be a headache.  This 
might occur, for example, if whatever factor causes John to 
experience a desire to drink coffee also causes these other factors 
to trigger a headache.  Does this seem farfetched?  It is not ruled 
out by the observables!  In fact, it makes EXACTLY the same 
statistical claims about observables that the other model does.

This is the same kind of argument Sir Ronald Fisher made against the 
claim that smoking causes cancer (very influentially for a while, I 
might add!).  It might be, he argued, that whatever it is that causes 
people to crave tobacco also causes cancer.  If they didn't smoke, 
they would still get cancer, because it's this other factor that is 
causing cancer. (Fisher was a pipe smoker, BTW.)  The rebuttal that 
persuaded people was to allow Fisher his assumption, to estimate the 
model implied by his assumption, and to show that in order to get the 
observed correlation between smoking and cancer, this alternate 
factor that causes both a craving for tobacco and cancer would have 
to be incredibly strong -- vastly stronger than typical statistical 
effects in medicine and the social sciences.

Anyway, the point is that there typically are many different 
counterfactual models consistent with a given distribution on 
observables.

Kathy Laskey

At 5:51 AM -0700 9/23/03, Charles R. Twardy wrote:
>On Fri, 12 Sep 2003, Thomas Richardson wrote:
>}[As a side note: Structural equation models can be interpreted as relating
>}to individual causal effects - i.e. inferring causes from effects, "Would
>}John have a headache had he not drunk coffee this morning given that he
>}did drink coffee and does have a headache", but this has not been done by
>}econometricians - whereas this is not true of "causal nets".
>
>Pearl gave examples of how to do that if you have another variable P, the
>population John comes from. I believe it would go like this:
>
>       Coffee --> John_Headache <-- Population
>
>       * Set coffee and headache
>       * Observe new distribution P' (we learned something abt John)
>       * Unset coffee and headache, and make P' the new prior on P
>       * Set no coffee
>       * Observe probability John would have had a headache
>
>- -crt
>
>
>- --
>Charles R. Twardy, Res.Fellow,  Monash University, School of CSSE
>ctwardy at alumni indiana edu   +61(3) 9905 5823 (w)  5146 (fax)
>
>"in much of the rest of the world, rich people live in gated
>  communities and drink bottled water." --Jared Diamond

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