Causal Inference
Causal Inference
Causal inference is the process of determining the independent, actual effect of a particular phenomenon
that is a component of a larger system. The main difference between causal inference and inference of
association is that causal inference analyzes the response of an effect variable when a cause of the effect
variable is changed.[1][2] The science of why things occur is called etiology. Causal inference is said to
provide the evidence of causality theorized by causal reasoning.
Causal inference is widely studied across all sciences. Several innovations in the development and
implementation of methodology designed to determine causality have proliferated in recent decades. Causal
inference remains especially difficult where experimentation is difficult or impossible, which is common
throughout most sciences.
The approaches to causal inference are broadly applicable across all types of scientific disciplines, and
many methods of causal inference that were designed for certain disciplines have found use in other
disciplines. This article outlines the basic process behind causal inference and details some of the more
conventional tests used across different disciplines; however, this should not be mistaken as a suggestion
that these methods apply only to those disciplines, merely that they are the most commonly used in that
discipline.
Causal inference is difficult to perform and there is significant debate amongst scientists about the proper
way to determine causality. Despite other innovations, there remain concerns of misattribution by scientists
of correlative results as causal, of the usage of incorrect methodologies by scientists, and of deliberate
manipulation by scientists of analytical results in order to obtain statistically significant estimates. Particular
concern is raised in the use of regression models, especially linear regression models.
Definition
Inferring the cause of something has been described as:
"...reason[ing] to the conclusion that something is, or is likely to be, the cause of something
else".[3]
"Identification of the cause or causes of a phenomenon, by establishing covariation of cause
and effect, a time-order relationship with the cause preceding the effect, and the elimination
of plausible alternative causes."[4]
Methodology
General
Causal inference is conducted via the study of systems where the measure of one variable is suspected to
affect the measure of another. Causal inference is conducted with regard to the scientific method. The first
step of causal inference is to formulate a falsifiable null hypothesis, which is subsequently tested with
statistical methods. Frequentist statistical inference is the use of statistical methods to determine the
probability that the data occur under the null hypothesis by chance; Bayesian inference is used to determine
the effect of an independent variable.[5] Statistical inference is generally used to determine the difference
between variations in the original data that are random variation or the effect of a well-specified causal
mechanism. Notably, correlation does not imply causation, so the study of causality is as concerned with
the study of potential causal mechanisms as it is with variation amongst the data. A frequently sought after
standard of causal inference is an experiment wherein treatment is randomly assigned but all other
confounding factors are held constant. Most of the efforts in causal inference are in the attempt to replicate
experimental conditions.
Epidemiological studies employ different epidemiological methods of collecting and measuring evidence of
risk factors and effect and different ways of measuring association between the two. Results of a 2020
review of methods for causal inference found that using existing literature for clinical training programs can
be challenging. This is because published articles often assume an advanced technical background, they
may be written from multiple statistical, epidemiological, computer science, or philosophical perspectives,
methodological approaches continue to expand rapidly, and many aspects of causal inference receive
limited coverage.[6]
Common frameworks for causal inference include the causal pie model (component-cause), Pearl's
structural causal model (causal diagram + do-calculus), structural equation modeling, and Rubin causal
model (potential-outcome), which are often used in areas such as social sciences and epidemiology.[7]
Experimental
Experimental verification of causal mechanisms is possible using experimental methods. The main
motivation behind an experiment is to hold other experimental variables constant while purposefully
manipulating the variable of interest. If the experiment produces statistically significant effects as a result of
only the treatment variable being manipulated, there is grounds to believe that a causal effect can be
assigned to the treatment variable, assuming that other standards for experimental design have been met.
Quasi-experimental
Approaches in epidemiology
Epidemiology studies patterns of health and disease in defined populations of living beings in order to infer
causes and effects. An association between an exposure to a putative risk factor and a disease may be
suggestive of, but is not equivalent to causality because correlation does not imply causation. Historically,
Koch's postulates have been used since the 19th century to decide if a microorganism was the cause of a
disease. In the 20th century the Bradford Hill criteria, described in 1965[8] have been used to assess
causality of variables outside microbiology, although even these criteria are not exclusive ways to determine
causality.
In molecular epidemiology the phenomena studied are on a molecular biology level, including genetics,
where biomarkers are evidence of cause or effects.
A recent trend is to identify evidence for influence of the exposure on molecular pathology within diseased
tissue or cells, in the emerging interdisciplinary field of molecular pathological epidemiology (MPE).
Linking the exposure to molecular pathologic signatures of the disease can help to assess causality.
Considering the inherent nature of heterogeneity of a given disease, the unique disease principle, disease
phenotyping and subtyping are trends in biomedical and public health sciences, exemplified as personalized
medicine and precision medicine.
Noise models
Incorporate an independent noise term in the model to compare the evidences of the two directions.
Here are some of the noise models for the hypothesis Y → X with the noise E:
Additive noise:[9]
Linear noise:[10]
Post-nonlinear:[11]
Heteroskedastic noise:
Functional noise:[12]
On an intuitive level, the idea is that the factorization of the joint distribution P(Cause, Effect) into
P(Cause)*P(Effect | Cause) typically yields models of lower total complexity than the factorization into
P(Effect)*P(Cause | Effect). Although the notion of "complexity" is intuitively appealing, it is not obvious
how it should be precisely defined.[12] A different family of methods attempt to discover causal "footprints"
from large amounts of labeled data, and allow the prediction of more flexible causal relations.[13]
Social science
The social sciences in general have moved increasingly toward including quantitative frameworks for
assessing causality. Much of this has been described as a means of providing greater rigor to social science
methodology. Political science was significantly influenced by the publication of Designing Social Inquiry,
by Gary King, Robert Keohane, and Sidney Verba, in 1994. King, Keohane, and Verba recommend that
researchers apply both quantitative and qualitative methods and adopt the language of statistical inference to
be clearer about their subjects of interest and units of analysis.[14][15] Proponents of quantitative methods
have also increasingly adopted the potential outcomes framework, developed by Donald Rubin, as a
standard for inferring causality.
While much of the emphasis remains on statistical inference in the potential outcomes framework, social
science methodologists have developed new tools to conduct causal inference with both qualitative and
quantitative methods, sometimes called a "mixed methods" approach.[16][17] Advocates of diverse
methodological approaches argue that different methodologies are better suited to different subjects of
study. Sociologist Herbert Smith and Political Scientists James Mahoney and Gary Goertz have cited the
observation of Paul Holland, a statistician and author of the 1986 article "Statistics and Causal Inference",
that statistical inference is most appropriate for assessing the "effects of causes" rather than the "causes of
effects".[18][19] Qualitative methodologists have argued that formalized models of causation, including
process tracing and fuzzy set theory, provide opportunities to infer causation through the identification of
critical factors within case studies or through a process of comparison among several case studies.[15] These
methodologies are also valuable for subjects in which a limited number of potential observations or the
presence of confounding variables would limit the applicability of statistical inference.
In the economic sciences and political sciences causal inference is often difficult, owing to the real world
complexity of economic and political realities and the inability to recreate many large-scale phenomena
within controlled experiments. Causal inference in the economic and political sciences continues to see
improvement in methodology and rigor, due to the increased level of technology available to social
scientists, the increase in the number of social scientists and research, and improvements to causal inference
methodologies throughout social sciences.[20]
Despite the difficulties inherent in determining causality in economic systems, several widely employed
methods exist throughout those fields.
Theoretical methods
Economists and political scientists can use theory (often studied in theory-driven econometrics) to estimate
the magnitude of supposedly causal relationships in cases where they believe a causal relationship
exists.[21] Theorists can presuppose a mechanism believed to be causal and describe the effects using data
analysis to justify their proposed theory. For example, theorists can use logic to construct a model, such as
theorizing that rain causes fluctuations in economic productivity but that the converse is not true.[22]
However, using purely theoretical claims that do not offer any predictive insights has been called "pre-
scientific" because there is no ability to predict the impact of the supposed causal properties.[5] It is worth
reiterating that regression analysis in the social science does not inherently imply causality, as many
phenomena may correlate in the short run or in particular datasets but demonstrate no correlation in other
time periods or other datasets. Thus, the attribution of causality to correlative properties is premature absent
a well defined and reasoned causal mechanism.
Instrumental variables
The instrumental variables (IV) technique is a method of determining causality that involves the elimination
of a correlation between one of a model's explanatory variables and the model's error term. This method
presumes that if a model's error term moves similarly with the variation of another variable, then the model's
error term is probably an effect of variation in that explanatory variable. The elimination of this correlation
through the introduction of a new instrumental variable thus reduces the error present in the model as a
whole.[23]
Model specification
Model specification is the act of selecting a model to be used in data analysis. Social scientists (and, indeed,
all scientists) must determine the correct model to use because different models are good at estimating
different relationships.[24]
Model specification can be useful in determining causality that is slow to emerge, where the effects of an
action in one period are only felt in a later period. It is worth remembering that correlations only measure
whether two variables have similar variance, not whether they affect one another in a particular direction;
thus, one cannot determine the direction of a causal relation based on correlations only. Because causal acts
are believed to precede causal effects, social scientists can use a model that looks specifically for the effect
of one variable on another over a period of time. This leads to using the variables representing phenomena
happening earlier as treatment effects, where econometric tests are used to look for later changes in data that
are attributed to the effect of such treatment effects, where a meaningful difference in results following a
meaningful difference in treatment effects may indicate causality between the treatment effects and the
measured effects (e.g., Granger-causality tests). Such studies are examples of time-series analysis.[25]
Sensitivity analysis
Other variables, or regressors in regression analysis, are either included or not included across various
implementations of the same model to ensure that different sources of variation can be studied more
separately from one another. This is a form of sensitivity analysis: it is the study of how sensitive an
implementation of a model is to the addition of one or more new variables.[26]
A chief motivating concern in the use of sensitivity analysis is the pursuit of discovering confounding
variables. Confounding variables are variables that have a large impact on the results of a statistical test but
are not the variable that causal inference is trying to study. Confounding variables may cause a regressor to
appear to be significant in one implementation, but not in another.
Multicollinearity
Another reason for the use of sensitivity analysis is to detect multicollinearity. Multicollinearity is the
phenomenon where the correlation between two variables is very high. A high level of correlation between
two variables can dramatically affect the outcome of a statistical analysis, where small variations in highly
correlated data can flip the effect of a variable from a positive direction to a negative direction, or vice
versa. This is an inherent property of variance testing. Determining multicollinearity is useful in sensitivity
analysis because the elimination of highly correlated variables in different model implementations can
prevent the dramatic changes in results that result from the inclusion of such variables.[27]
However, there are limits to sensitivity analysis' ability to prevent the deleterious effects of multicollinearity,
especially in the social sciences, where systems are complex. Because it is theoretically impossible to
include or even measure all of the confounding factors in a sufficiently complex system, econometric
models are susceptible to the common-cause fallacy, where causal effects are incorrectly attributed to the
wrong variable because the correct variable was not captured in the original data. This is an example of the
failure to account for a lurking variable.[28]
Design-based econometrics
Recently, improved methodology in design-based econometrics has popularized the use of both natural
experiments and quasi-experimental research designs to study the causal mechanisms that such experiments
are believed to identify.[29]
Separate from the difficulties of causal inference, the perception that large numbers of scholars in the social
sciences engage in non-scientific methodology exists among some large groups of social scientists.
Criticism of economists and social scientists as passing off descriptive studies as causal studies are rife
within those fields.[5]
In the sciences, especially in the social sciences, there is concern among scholars that scientific malpractice
is widespread. As scientific study is a broad topic, there are theoretically limitless ways to have a causal
inference undermined through no fault of a researcher. Nonetheless, there remain concerns among scientists
that large numbers of researchers do not perform basic duties or practice sufficiently diverse methods in
causal inference.[30][20][31][32]
One prominent example of common non-causal methodology is the erroneous assumption of correlative
properties as causal properties. There is no inherent causality in phenomena that correlate. Regression
models are designed to measure variance within data relative to a theoretical model: there is nothing to
suggest that data that presents high levels of covariance have any meaningful relationship (absent a
proposed causal mechanism with predictive properties or a random assignment of treatment). The use of
flawed methodology has been claimed to be widespread, with common examples of such malpractice being
the overuse of correlative models, especially the overuse of regression models and particularly linear
regression models.[5] The presupposition that two correlated phenomena are inherently related is a logical
fallacy known as spurious correlation. Some social scientists claim that widespread use of methodology that
attributes causality to spurious correlations have been detrimental to the integrity of the social sciences,
although improvements stemming from better methodologies have been noted.[29]
A potential effect of scientific studies that erroneously conflate correlation with causality is an increase in
the number of scientific findings whose results are not reproducible by third parties. Such non-
reproducibility is a logical consequence of findings that correlation only temporarily being overgeneralized
into mechanisms that have no inherent relationship, where new data does not contain the previous,
idiosyncratic correlations of the original data. Debates over the effect of malpractice versus the effect of the
inherent difficulties of searching for causality are ongoing.[33] Critics of widely practiced methodologies
argue that researchers have engaged statistical manipulation in order to publish articles that supposedly
demonstrate evidence of causality but are actually examples of spurious correlation being touted as
evidence of causality: such endeavors may be referred to as P hacking.[34] To prevent this, some have
advocated that researchers preregister their research designs prior to conducting to their studies so that they
do not inadvertently overemphasize a nonreproducible finding that was not the initial subject of inquiry but
was found to be statistically significant during data analysis.[35]
See also
Causal analysis
Causal model
Granger causality
Multivariate statistics
Partial least squares regression
Pathogenesis
Pathology
Probabilistic causation
Probabilistic argumentation
Probabilistic logic
Regression analysis
Transfer entropy
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External links
NIPS 2013 Workshop on Causality (http://clopinet.com/isabelle/Projects/NIPS2013/)
Causal inference at the Max Planck Institute for Intelligent Systems Tübingen (http://webdav.
tuebingen.mpg.de/causality/)