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Structural causal model

As explained in Causal AI

A causal model is a statistical model built on assumptions about the causal process that generates data and supports reasoning about interventions.

Suppose femur length helps determine height. A causal graph can say that femur length causes height; a structural causal model (SCM) also specifies how it does so. That extra assumption can support causal inferences that a graph alone cannot, but it creates another way for the model to be wrong. section 6.0 section 6.1

An SCM starts with a causal directed acyclic graph (DAG). Its endogenous variables are the quantities modeled explicitly. Exogenous, or noise, variables stand for causes left outside that model. Each endogenous variable has a structural assignment: a function that determines its value from its parents. In the formulation here, each endogenous variable has its own latent exogenous parent; those exogenous variables are independent root nodes. Their values come from probability distributions, while the assignments determine endogenous values. section 6.1.3

Height from femur length

Let x be femur length in centimeters and y be height in centimeters. One proposed mechanism is nᵧ ~ N(0, 3.3) and y = 25 + 3x + nᵧ. The equation asserts that changing femur length changes height proportionally; nᵧ represents other causal determinants. Linearity is a causal claim to justify, not merely a convenient curve to fit. section 6.1.1

This differs from fitting a conditional probability table or neural-network component to each node. Those components can describe how a child varies with its parents without asserting a particular mechanism. A structural assignment deliberately makes a stronger claim about that mechanism. Stronger assumptions may enable stronger inferences, but also increase the risk of modeling error. section 6.1

Use the model to reason about setting a cause to a hypothetical value when a real experiment is infeasible. First make the graph and assignment assumptions explicit; then ask whether their implications survive contact with data. Conditional-independence checks can refute a proposed DAG, but failure to refute it does not establish that its causal claims are true. section 1.5.3 section 4.3

How Causal AI covers it

How deep it goes
Defines variables and deterministic assignments, then works through a linear mechanism; later causal inferences are deferred.
Examples
Uses femur length and height to illustrate a linear assignment with a noise variable for other causes.
What it assumes
Assumes an existing causal DAG and introduces endogenous variables, exogenous variables, and assignments from that starting point.
What you can do after
Build it from scratch by adding exogenous variables and structural assignments to a causal DAG.
How it connects
Connects causal DAGs and probabilistic generative models to structural assignments, latent variables, interventions, and model refutation.

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