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Parametric assumption

As explained in Causal AI

A parametric assumption specifies a functional or distributional form that restricts the parameters or relationships in a causal model.

A parametric assumption specifies how a causal model represents each node’s outcome and maps its parents to that outcome. It chooses, for example, a categorical or numeric outcome and a conditional probability table, regression model, or neural network. section 3.1.9

This choice follows the causal graph rather than defining it. A DAG can encode that age causes education without deciding whether age is represented as classes, an integer, or elapsed time, or whether the relationship uses a categorical distribution or regression. Causal assumptions and parametric assumptions are therefore separate layers of implementation. section 3.1.9

Parametric choices appear in several modeling strategies:

  • Use conditional probability tables for categorical variables. section 3.1.9
  • Use generalized linear models for categorical outcomes or other regression approaches for numeric outcomes. section 3.1.9
  • Use neural network architectures to model individual causal Markov kernels. section 3.1.9
  • Recognize that some causal estimands require more than graphical assumptions: instrumental-variable estimation additionally uses a linearity assumption. section 11.3.2

Instrumental-variable estimation

For an instrumental-variable estimand, a linearity assumption lets the treatment and outcome relationships be estimated with linear regression, producing the average treatment effect from model coefficients. The graphical assumptions alone are insufficient for this identification route. section 11.3.2

Listing 3.5 Bayesian point estimation with a Dirichlet conjugate prior
from pgmpy.estimators import BayesianEstimator     #1
model.fit(
    data,
    estimator=BayesianEstimator,    #2
    prior_type="dirichlet",
    pseudo_counts=1    #3
) 
causal_markov_kernels = model.get_cpds()      #4
cmk_T = causal_markov_kernels[-1]     #4
print(cmk_T)  #4

Inspect a BayesianEstimator configuration that fits causal Markov kernels with a Dirichlet prior and pseudo-counts. section 3.1.9

How Causal AI covers it

How deep it goes
Defines outcome types and parent mappings, then links linearity to instrumental-variable estimation without deriving broader model-fitting details.
Examples
Uses age and education representation choices, categorical probability tables, neural networks, Bayesian estimation, and linear instrumental-variable models.
What it assumes
Assumes familiarity with DAGs and causal questions while distinguishing those graphical assumptions from statistical modeling decisions.
What you can do after
Apply parametric choices by selecting outcome representations and parent mappings, then fit causal kernels or linear instrumental-variable models.
How it connects
Connects causal graphs, causal Markov kernels, generalized linear models, neural networks, regression, and instrumental-variable estimation.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Causal AI. The section links point to the parts of the book it draws on.