Causal graphs and counterfactuals

Problem solved: Found what I was looking for in: An Axiomatic Characterization Causal Counterfactuals, thanks to Evan Lloyd.

Basically, making every endogenous variable a deterministic function of the exogenous variables and of the other endogenous variables, and pushing all the stochasticity into the exogenous variables.

Old post:

A problem that’s come up with my definitions of stratification.

Consider a very simple causal graph:

In this setting, A and B are both booleans, and A=B with 75% probability (independently about whether A=0 or A=1).

I now want to compute the counterfactual: suppose I assume that B=0 when A=0. What would happen if A=1 instead?

The problem is that P(B|A) seems insufficient to solve this. Let’s imagine the process that outputs B as a probabilistic mix of functions, that takes the value of A and outputs that of B. There are four natural functions here:

  • f0(x) = 0

  • f1(x) = 1

  • f2(x) = x

  • f3(x) = 1-x

Then one way of modelling the causal graph is as a mix 0.75f2 + 0.25f3. In that case, knowing that B=0 when A=0 implies that P(f2)=1, so if A=1, we know that B=1.

But we could instead model the causal graph as 0.5f2+0.25f1+0.25f0. In that case, knowing that B=0 when A=0 implies that P(f2)=2/​3 and P(f0)=1/​3. So if A=1, B=1 with probability 23 and B=1 with probability 13.

And we can design the node B, physically, to be one or another of the two distributions over functions or anything in between (the general formula is (0.5+x)f2 + x(f3)+(0.25-x)f1+(0.25-x)f0 for 0 ≤ x ≤ 0.25). But it seems that the causal graph does not capture that.

Owain Evans has said that Pearl has papers covering these kinds of situations, but I haven’t been able to find them. Does anyone know any publications on the subject?