Counterfactuals and policy analysis in structural models

  • Authors:
  • Alexander Balke;Judea Pearl

  • Affiliations:
  • Cognitive Systems Laboratory, Computer Science Department, University of California, Los Angeles, CA;Cognitive Systems Laboratory, Computer Science Department, University of California, Los Angeles, CA

  • Venue:
  • UAI'95 Proceedings of the Eleventh conference on Uncertainty in artificial intelligence
  • Year:
  • 1995

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Abstract

Evaluation of counterfactual queries (e.g., "If A were true, would C have been true?") is important to fault diagnosis, planning, determination of liability, and policy analysis. We present a method for evaluating counterfactuals when the underlying causal model is represented by structural models - a nonlinear generalization of the simultaneous equations models commonly used in econometrics and social sciences. This new method provides a coherent means for evaluating policies involving the control of variables which, prior to enacting the policy were influenced by other variables in the system.