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This paper clarifies how and why structural demand models (Berry and Haile, 2014, 2024) predict unit-level counterfactual outcomes. We do so by casting structural assumptions equivalently as restrictions on the joint distribution of…

Econometrics · Economics 2025-11-07 Jiafeng Chen

We look more carefully at the modeling of causality using structural equations. It is clear that the structural equations can have a major impact on the conclusions we draw about causality. In particular, the choice of variables and their…

Artificial Intelligence · Computer Science 2011-06-15 Joseph Y. Halpern , Christopher Hitchcock

Accurate estimation of counterfactual outcomes in high-dimensional data is crucial for decision-making and understanding causal relationships and intervention outcomes in various domains, including healthcare, economics, and social…

Machine Learning · Computer Science 2024-07-31 Jiageng Zhu , Hanchen Xie , Jiazhi Li , Wael Abd-Almageed

Counterfactual inference is a useful tool for comparing outcomes of interventions on complex systems. It requires us to represent the system in form of a structural causal model, complete with a causal diagram, probabilistic assumptions on…

In this paper we study the problem of making predictions using multiple structural casual models defined by different agents, under the constraint that the prediction satisfies the criterion of counterfactual fairness. Relying on the…

Artificial Intelligence · Computer Science 2021-05-25 Fabio Massimo Zennaro , Magdalena Ivanovska

Counterfactual explanations are attracting significant attention due to the flourishing applications of machine learning models in consequential domains. A counterfactual plan consists of multiple possibilities to modify a given instance so…

Machine Learning · Computer Science 2022-04-12 Ngoc Bui , Duy Nguyen , Viet Anh Nguyen

Counterfactuals answer questions of what would have been observed under altered circumstances and can therefore offer valuable insights. Whereas the classical interventional interpretation of counterfactuals has been studied extensively,…

Artificial Intelligence · Computer Science 2024-08-13 Klaus-Rudolf Kladny , Julius von Kügelgen , Bernhard Schölkopf , Michael Muehlebach

Counterfactuals are often described as 'retrospective,' focusing on hypothetical alternatives to a realized past. This description relates to an often implicit assumption about the structure and stability of exogenous variables in the…

Artificial Intelligence · Computer Science 2022-12-09 Lucius E. J. Bynum , Joshua R. Loftus , Julia Stoyanovich

Sophisticated machine models are increasingly used for high-stakes decisions in everyday life. There is an urgent need to develop effective explanation techniques for such automated decisions. Rule-Based Explanations have been proposed for…

Machine Learning · Computer Science 2022-11-01 Zixuan Geng , Maximilian Schleich , Dan Suciu

We present a general causal generative modelling framework for accurate estimation of high fidelity image counterfactuals with deep structural causal models. Estimation of interventional and counterfactual queries for high-dimensional…

Machine Learning · Computer Science 2023-07-19 Fabio De Sousa Ribeiro , Tian Xia , Miguel Monteiro , Nick Pawlowski , Ben Glocker

Counterfactual reasoning, a cornerstone of human cognition and decision-making, is often seen as the 'holy grail' of causal learning, with applications ranging from interpreting machine learning models to promoting algorithmic fairness.…

Machine Learning · Computer Science 2025-04-11 Yahya Aalaila , Gerrit Großmann , Sumantrak Mukherjee , Jonas Wahl , Sebastian Vollmer

In this work we propose a different surgical modified model for the construction of counterfactual variables under non parametric structural equation models. This approach allows the simultaneous representation of counterfactual responses…

Statistics Theory · Mathematics 2013-10-08 Julieta Molina , Lucio Pantazis , Mariela Sued

The best empirical research in political science clearly defines substantive parameters of interest, presents a set of assumptions that guarantee its identification, and uses an appropriate estimator. We argue for the importance of…

Methodology · Statistics 2023-02-06 Nathan Canen , Kristopher Ramsay

Counterfactual thinking is a crucial yet challenging topic for artificial intelligence to learn knowledge from data and ultimately improve performance for new scenarios. Many research works, including the Potential Outcome Model (POM) and…

Artificial Intelligence · Computer Science 2026-02-24 Mingyu Kang , Duxin Chen , Ziyuan Pu , Jianxi Gao , Wenwu Yu

Machine learning plays a role in many deployed decision systems, often in ways that are difficult or impossible to understand by human stakeholders. Explaining, in a human-understandable way, the relationship between the input and output of…

Machine Learning · Computer Science 2022-11-17 Sahil Verma , Varich Boonsanong , Minh Hoang , Keegan E. Hines , John P. Dickerson , Chirag Shah

Displaying confidence scores in human-AI interaction has been shown to help build trust between humans and AI systems. However, most existing research uses only the confidence score as a form of communication. As confidence scores are just…

Artificial Intelligence · Computer Science 2023-03-13 Thao Le , Tim Miller , Ronal Singh , Liz Sonenberg

Interpretability research takes counterfactual theories of causality for granted. Most causal methods rely on counterfactual interventions to inputs or the activations of particular model components, followed by observations of the change…

Machine Learning · Computer Science 2024-07-08 Aaron Mueller

LLM-based social simulations can generate believable community interactions, enabling ``policy wind tunnels'' where governance interventions are tested before deployment. But believability is not causality. Claims like ``intervention $A$…

Computation and Language · Computer Science 2026-04-17 Agam Goyal , Yian Wang , Eshwar Chandrasekharan , Hari Sundaram

Counterfactual explanations are emerging as an attractive option for providing recourse to individuals adversely impacted by algorithmic decisions. As they are deployed in critical applications (e.g. law enforcement, financial lending), it…

Machine Learning · Computer Science 2021-11-05 Dylan Slack , Sophie Hilgard , Himabindu Lakkaraju , Sameer Singh

We consider the problem of estimating counterfactual quantities when prior knowledge is available in the form of disjunctive statements. These include disjunction of conditions (e.g., "the patient is more than 60 years of age") as well as…

Methodology · Statistics 2017-08-14 Manabu Kuroki