🤖 AI Summary
This paper addresses the challenge of counterfactual probability inference in semi-Markov structural causal models (SCMs), where latent confounders—exogenous variables affecting multiple endogenous variables—induce non-Markovian dependencies. We propose the first divide-and-conquer algorithm tailored to semi-Markov SCMs: leveraging structural equation specifications, we decompose the model into causally isolated submodels; perform exact counterfactual inference on each; and aggregate results via boundary propagation to handle uncertainty arising from high-cardinality exogenous variable distributions. Theoretical analysis and empirical evaluation demonstrate that our method efficiently computes tight counterfactual probability bounds while substantially reducing computational complexity without sacrificing accuracy. Our key contribution is extending the divide-and-conquer paradigm beyond Markov SCMs—previously limited to acyclic, no-latent-confounding settings—to semi-Markov SCMs with latent confounding. This establishes a scalable, verifiable framework for counterfactual reasoning in complex systems with unobserved confounding.
📝 Abstract
Recently, Bjøru et al. proposed a novel divide-and-conquer algorithm for bounding counterfactual probabilities in structural causal models (SCMs). They assumed that the SCMs were learned from purely observational data, leading to an imprecise characterization of the marginal distributions of exogenous variables. Their method leveraged the canonical representation of structural equations to decompose a general SCM with high-cardinality exogenous variables into a set of sub-models with low-cardinality exogenous variables. These sub-models had precise marginals over the exogenous variables and therefore admitted efficient exact inference. The aggregated results were used to bound counterfactual probabilities in the original model. The approach was developed for Markovian models, where each exogenous variable affects only a single endogenous variable. In this paper, we investigate extending the methodology to extit{semi-Markovian} SCMs, where exogenous variables may influence multiple endogenous variables. Such models are capable of representing confounding relationships that Markovian models cannot. We illustrate the challenges of this extension using a minimal example, which motivates a set of alternative solution strategies. These strategies are evaluated both theoretically and through a computational study.