Identifying Direct Causal Effects in Latent Factor Models by Accounting for Unidentified Parents

MCML Authors

Mathias Drton

Prof. Dr.

Core PI

Mathematical Statistics

Abstract

We consider linear structural equation models with explicitly modelled latent variables.<br>In such models, observed and latent variables solve linear equations including stochastic noise terms. The goal of our work is to identify the direct causal effects between the observed variables of interest by providing (rational) formulas in the observed covariances. Most prior identification approaches operate in the latent projection framework, where latent variables are projected away into dependent error terms. However, when the observed variables are densely confounded, even if only by a few latent variables, the projection-based approaches are unable to certify identifiability of most effects. For such problems, approaches that explicitly use the latent variables are more effective, but algorithms that were recently proposed for this purpose often remain inconclusive for denser causal graphs. We develop a new identification criterion that is able to better handle dense graphs by leveraging the key insight that recursive identification schemes can be generalized by explicitly accounting for causal parents with (yet) unidentified direct effects. Combinatorial search problems in our new criterion can be tackled with the help of network-flow computations, leading to a practical useful algorithmic tool that we also make available in software.

misc TSR+26

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Preprint

May. 2026

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Authors

T. Hochsprung • N. Sturma • J. Runge • M. Drton • A. Gerhardus

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Links

arXiv

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Research Area

 A1 | Statistical Foundations & Explainability