The paper analyzes the methods that macroeconomists can use to provide evidence in support of causal hypotheses: the instrumental variable method and econometric causality tests. It argues that the evidence that macroeconomists provide when using these methods is in principle too inconclusive to support the hypothesis that X directly type-level causes Y, where X and Y stand for macroeconomic aggregates like the real interest rate and aggregate demand. The evidence provided by the IV method is too inconclusive because it derives (...) from conditions requiring that there be no confounders of I and X and X and Y, and because in macroeconomics, confounders that cannot be controlled for or measured are likely to be present. The evidence provided by econometric causality tests is too inconclusive because they can be shown to rely on the conditions of the IV method at least tacitly. (shrink)

The paper presents and defends a Bayesian theory of trust in social networks. In the first part of the paper, we provide justifications for the basic assumptions behind the model, and we give reasons for thinking that the model has plausible consequences for certain kinds of communication. In the second part of the paper we investigate the phenomenon of overconfidence. Many psychological studies have found that people think they are more reliable than they actually are. Using a simulation environment that (...) has been developed in order to make our model computationally tractable we show that in our model inquirers are indeed sometimes better off from an epistemic perspective overestimating the reliability of their own inquiries. We also show, by contrast, that people are rarely better off overestimating the reliability of others. On the basis of these observations we formulate a novel hypothesis about the value of overconfidence. (shrink)

The framework of causal Bayes nets, currently influential in several scientific disciplines, provides a rich formalism to study the connection between causality and probability from an epistemological perspective. This article compares three assumptions in the literature that seem to constrain the connection between causality and probability in the style of Occam's razor. The trio includes two minimality assumptions—one formulated by Spirtes, Glymour, and Scheines (SGS) and the other due to Pearl—and the more well-known faithfulness or stability assumption. In terms of (...) logical strength, it is fairly obvious that the three form a sequence of increasingly stronger assumptions. The focus of this article, however, is to investigate the nature of their relative strength. The comparative analysis reveals an important sense in which Pearl's minimality assumption is as strong as the faithfulness assumption and identifies a useful condition under which it is as safe as SGS's relatively secure minimality assumption. Both findings have notable implications for the theory and practice of causal inference. 1 Introduction2 Background: Inference of Causal Structure in Markovian Causal Models3 Three Assumptions of Simplicity4 A Comparison of P-minimality and Faithfulness5 A Comparison of P-minimality and SGS-minimality6 Methodological Formulations and Prior Knowledge of Causal Order7 Conclusion. (shrink)

The paper will show how one may rationalize one-boxing in Newcomb's problem and drinking the toxin in the Toxin puzzle within the confines of causal decision theory by ascending to so-called reflexive decision models which reflect how actions are caused by decision situations (beliefs, desires, and intentions) represented by ordinary unreflexive decision models.

The paper attempts to rationalize cooperation in the one-shot prisoners' dilemma (PD). It starts by introducing (and preliminarily investigating) a new kind of equilibrium (differing from Aumann's correlated equilibria) according to which the players' actions may be correlated (sect. 2). In PD the Pareto-optimal among these equilibria is joint cooperation. Since these equilibria seem to contradict causal preconceptions, the paper continues with a standard analysis of the causal structure of decision situations (sect. 3). The analysis then raises to a reflexive (...) point of view according to which the agent integrates his own present and future decision situations into the causal picture of his situation (sect. 4). This reflexive structure is first applied to the toxin puzzle and then to Newcomb's problem, showing a way to rationalize drinking the toxin and taking only one box with-out assuming causal mystery (sect. 5). The latter result is finally extended to a rationalization of cooperation in PD (sect. 6). (shrink)

And this paper is an attempt to say precisely how, thus addressing a philosophical problem which is commonly taken to be a serious one. It does so, however, in quite an idiosyncratic way. It is based on the account of inductive schemes I have given in (1988) and (1990a) and on the conception of causation I have presented in (1980), (1983), and (1990b), and it intends to fill one of many gaps which have been left by these papers. Still, I (...) have tried to make this paper self-contained. Section 1 explains the philosophical question this paper is about; in more general terms it asks what might be meant by objectifying epistemic states or features of them and to which extent epistemic states can be objectified. The next sections introduce the basis I rely on with formal precision and some explanation; section 2 deals with induction and section 3 with causation. Within these confines, section 4 attempts to give an explication of the relevant sense of objectification and section 5 investigates the extent to which various features of epistemic states are objectifiable. The two most salient results are roughly that the relation "A is a reason for B" cannot be objectified at all and that the relation "A is a cause of B" can be objectified only under substantial, though reasonable restrictions. What has all of this to do with probability? A lot. The paper trades on a pervasive duality between probabilistic and deterministic epistemology, between a probabilistic representation of epistemic states together with a theory of probabilistic causation and another representation of epistemic states which I call deterministic because it lends itself, in a perfectly parallel fashion, to a theory of deterministic causation. Here I explicitly deal only with the deterministic side, but the duality should pave the way for further conclusions concerning objective probabilities and statistical laws. This outlook is briefly expanded in the final section 6. (shrink)

The Spohnian paradigm of ranking functions is in many respects like an order-of-magnitude reverse of subjective probability theory. Unlike probabilities, however, ranking functions are only indirectly—via a pointwise ranking function on the underlying set of possibilities W —defined on a field of propositions A over W. This research note shows under which conditions ranking functions on a field of propositions A over W and rankings on a language L are induced by pointwise ranking functions on W and the set of (...) models for L, ModL, respectively. (shrink)

In their rich and intricate paper ‘Independence, Invariance, and the Causal Markov Condition’, Daniel Hausman and James Woodward ([1999]) put forward two independent theses, which they label ‘level invariance’ and ‘manipulability’, and they claim that, given a specific set of assumptions, manipulability implies the causal Markov condition. These claims are interesting and important, and this paper is devoted to commenting on them. With respect to level invariance, I argue that Hausman and Woodward's discussion is confusing because, as I point out, (...) they use different senses of ‘intervention’ and ‘invariance’ without saying so. I shall remark on these various uses and point out that the thesis is true in at least two versions. The second thesis, however, is not true. I argue that in their formulation, the manipulability thesis is patently false and that a modified version does not fare better. Furthermore, I think their proof that manipulability implies the causal Markov condition is not conclusive. In the deterministic case it is valid but vacuous, whereas it is invalid in the probabilistic case. 1 Introduction 2 Intervention, invariance and modularity 3 The causal Markov condition: CM1 and CM2 4 From MOD to the causal Markov condition and back 5 A second argument for CM2 6 The proof of the causal Markov condition for probabilistic causes 7 ‘Cartwright's objection’ defended 8 Metaphysical defenses of the causal Markov condition 9 Conclusion. (shrink)

The relationship between machine learning and the philosophy of science can be classed as a dynamic interaction: a mutually beneficial connection between two autonomous fields that changes direction over time. I discuss the nature of this interaction and give a case study highlighting interactions between research on Bayesian networks in machine learning and research on causality and probability in the philosophy of science.

There have been two principal paradigms for the formulation of the causal relation--logical implication and functional relationship. In this paper, I present a case for preferring the functional relationship formulation and then discuss how the functional relationship formulation may be implemented in the probabilistic case in a manner analogous to the way others have implemented the logical implication formulation in the probabilistic case. I show how the "local independence" assumption found in many models used in the behavioral and social sciences (...) is a consequence of the functional relation concept of probabilistic causality. I also discuss why causal relations are underdetermined in experience and are to be dealt with pragmatically in a hypothesis-testing framework. (shrink)

Bayes nets are a powerful tool for researchers in statistics and artificial intelligence. This chapter demonstrates that they are also of much use for philosophers and psychologists interested in (Bayesian) rationality. To do so, we outline the general methodology of Bayes nets modeling in rationality research and illustrate it with several examples from the philosophy and psychology of reasoning and argumentation. Along the way, we discuss the normative foundations of Bayes nets modeling and address some of the methodological problems it (...) raises. (shrink)

Supporters of the autonomy of higher-level causation (or explanation) often appeal to proportionality, arguing that higher-level causes are more proportional than their lower-level realizers. Recently, measures based on information theory and causal modeling have been proposed that allow one to shed new light on proportionality and the related notion of specificity. In this paper we apply ideas from this literature to the issue of higher vs. lower-level causation (and explanation). Surprisingly, proportionality turns out to be irrelevant for the question of (...) whether higher-level causes (or explanations) can be autonomous; specificity is a much more informative notion for this purpose. (shrink)

The paper displays the similarity between the theory of probabilistic causation developed by Glymour et al. since 1983 and mine developed since 1976: the core of both is that causal graphs are Bayesian nets. The similarity extends to the treatment of actions or interventions in the two theories. But there is also a crucial difference. Glymour et al. take causal dependencies as primitive and argue them to behave like Bayesian nets under wide circumstances. By contrast, I argue the behavior of (...) Bayesian nets to be ultimately the defining characteristic of causal dependence. (shrink)

As the paper explains, it is crucial to epistemology in general and to the theory of causation in particular to investigate the properties of conditional independence as completely as possible. The paper summarizes the most important results concerning conditional independence with respect to two important representations of epistemic states, namely (strictly positive) probability measures and natural conditional (or disbelief or ranking) functions. It finally adds some new observations.

This paper presents a formalism that combines useful properties of both logic and probabilities. Like logic, the formalism admits qualitative sentences and provides symbolic machinery for deriving deductively closed beliefs and, like probability, it permits us to express if-then rules with different levels of firmness and to retract beliefs in response to changing observations. Rules are interpreted as order-of-magnitude approximations of conditional probabilities which impose constraints over the rankings of worlds. Inferences are supported by a unique priority ordering on rules (...) which is syntactically derived from the knowledge base. This ordering accounts for rule interactions, respects specificity considerations and facilitates the construction of coherent states of beliefs. Practical algorithms are developed and analyzed for testing consistency, computing rule ordering, and answering queries. Imprecise observations are incorporated using qualitative versions of Jeffrey's rule and Bayesian updating, with the result that coherent belief revision is embodied naturally and tractably. Finally, causal rules are interpreted as imposing Markovian conditions that further constrain world rankings to reflect the modularity of causal organizations. These constraints are shown to facilitate reasoning about causal projections, explanations, actions and change. (shrink)

The paper builds on the basically Humean idea that A is a cause of B iff A and B both occur, A precedes B, and A raises the metaphysical or epistemic status of B given the obtaining circumstances. It argues that in pursuit of a theory of deterministic causation this ‘status raising’ is best explicated not in regularity or counterfactual terms, but in terms of ranking functions. On this basis, it constructs a rigorous theory of deterministic causation that successfully deals (...) with cases of overdetermination and pre-emption. It finally indicates how the account's profound epistemic relativization induced by ranking theory can be undone. Introduction Variables, propositions, time Induction first Causation Redundant causation Objectivization. (shrink)

We appeal to the theory of Bayesian Networks to model different strategies for obtaining confirmation for a hypothesis from experimental test results provided by less than fully reliable instruments. In particular, we consider (i) repeated measurements of a single test consequence of the hypothesis, (ii) measurements of multiple test consequences of the hypothesis, (iii) theoretical support for the reliability of the instrument, and (iv) calibration procedures. We evaluate these strategies on their relative merits under idealized conditions and show some surprising (...) repercussions on the variety-of-evidence thesis and the Duhem-Quine thesis. (shrink)

Though common sense says that causes must temporally precede their effects, the hugely influential interventionist account of causation makes no reference to temporal precedence. Does common sense lead us astray? In this paper, I evaluate the power of the commonsense assumption from within the interventionist approach to causal modeling. I first argue that if causes temporally precede their effects, then one need not consider the outcomes of interventions in order to infer causal relevance, and that one can instead use temporal (...) and probabilistic information to infer exactly when X is causally relevant to Y in each of the senses captured by Woodward’s interventionist treatment. Then, I consider the upshot of these findings for causal decision theory, and argue that the commonsense assumption is especially powerful when an agent seeks to determine whether so-called “dominance reasoning” is applicable. (shrink)

The relationship between individual and population health is partially built on the broad dichotomization of medicine into clinical medicine and public health. Potential drawbacks of current views include seeing both individual and population health as absolute and independent concepts. I will argue that the relationship between individual and population health is largely relative and dynamic. Their interrelated dynamism derives from a causally defined life course perspective on health determination starting from an individual’s conception through growth, development and participation in the (...) collective till death, all seen within the context of an adaptive society. Indeed, it will become clear that neither individual nor population health is identifiable or even definable without informative contextualization within the other. For instance, a person’s health cannot be seen in isolation but must be placed in the rich contextual web such as the socioeconomic circumstances and other health determinants of where they were conceived, born, bred, and how they shaped and were shaped by their environment and communities, especially given the prevailing population health exposures over their lifetime. We cannot discuss the “what” and “how much” of individual and population health until we know the cumulative trajectories of both, using appropriate causal language. (shrink)

"Five Questions on Formal Philosophy": Like the other authors in the volume, I was asked for my reflections on the character of philosophy by answering the following five questions : 1. Why were you initially drawn to formal methods? 2. What example from your work illustrates the role formal methods can play in philosophy? 3. What is the proper role of philosophy in relation to other disciplines? 4. What do you consider the most neglected topics and/or contributions in late 20th (...) century philosophy? 5. What are the most important problems in philosophy and which are the prospects for progress? (shrink)

This paper deals with Hans Reichenbach's common cause principle. It was propounded by him in, and has been developed and widely applied by Wesley Salmon, e.g. in and. Thus, it has become one of the focal points of the continuing discussion of causation. The paper addresses five questions. Section 1 asks: What does the principle say? And section 2 asks: What is its philosophical significance? The most important question, of course, is this: Is the principle true? To answer that question, (...) however, one must first consider how one might one argue about it at all. One can do so by way of examples, the subject of section 3, or more theoretically, which is the goal of section 4. Based on an explication of probabilistic causation proposed by me in,, and, section 4 shows that a variant of the principle is provable within a classical framework. The question naturally arises whether the proved variant is adequate, or too weak. This is pursued in section 5. My main conclusion will be that some version of Reichenbach's principle is provably true, and others may be. This may seem overly ambitious, but it is not. The paper does not make any progress on essential worries about the common cause principle arising in the quantum domain; it only establishes more rigorously what has been thought to be plausible at least within a classical framework. (shrink)

Judea Pearl won the 2010 Rumelhart Prize in computational cognitive science due to his seminal contributions to the development of Bayes nets and causal Bayes nets, frameworks that are central to multiple domains of the computational study of mind. At the heart of the causal Bayes nets formalism is the notion of a counterfactual, a representation of something false or nonexistent. Pearl refers to Bayes nets as oracles for intervention, and interventions can tell us what the effect of action will (...) be or what the effect of counterfactual possibilities would be. Counterfactuals turn out to be necessary to understand thought, perception, and language. This selection of papers tells us why, sometimes in ways that support the Bayes net framework and sometimes in ways that challenge it. (shrink)

Systems of logico-probabilistic reasoning characterize inference from conditional assertions that express high conditional probabilities. In this paper we investigate four prominent LP systems, the systems _O, P_, _Z_, and _QC_. These systems differ in the number of inferences they licence _. LP systems that license more inferences enjoy the possible reward of deriving more true and informative conclusions, but with this possible reward comes the risk of drawing more false or uninformative conclusions. In the first part of the paper, we (...) present the four systems and extend each of them by theorems that allow one to compute almost-tight lower-probability-bounds for the conclusion of an inference, given lower-probability-bounds for its premises. In the second part of the paper, we investigate by means of computer simulations which of the four systems provides the best balance of reward versus risk. Our results suggest that system _Z_ offers the best balance. (shrink)

If you believe more things you thereby run a greater risk of being in error than if you believe fewer things. From the point of view of avoiding error, it is best not to believe anything at all, or to have very uncommitted beliefs. But considering the fact that we all in fact do entertain many specific beliefs, this recommendation is obviously in flagrant dissonance with our actual epistemic practice. Let us call the problem raised by this apparent conflict the (...) Addition Problem. In this paper we will find reasons to reject a particular premise used in the formulation of the Addition Problem, namely, the fundamental premise according to which believing more things increases the risk of error. As we will see, acquiring more beliefs need not decrease the probability of the whole, and hence need not increase the risk of error. In fact, more beliefs can mean an increase in the probability of the whole and a corresponding decrease in the risk of error. We will consider the Addition Problem as it arises in the context of the coherence theory of epistemic justification, while keeping firmly in mind that the point we wish to make is of epistemological importance also outside the specific coherentist dispute. The problem of determining exactly how the probability of the whole system depends on such factors as coherence, reliability and independence will be seen to open up an interesting area of research in which the theory of conditional independence structures is a helpful tool. (shrink)

This is one of a pair of discussion notes comparing some features of the account of causation in Wolfgang Spohn’s Laws of Belief with the “interventionist” account in James Woodward’s Making Things Happen. This note locates the core difference of the accounts in the fact that Woodward’s account follows an epistemological order, while Spohn’s follows a conceptual order. This unfolds in five further differences: type- versus token-level causation, reference to time, actual/counterfactual intervention versus epistemic/suppositional wiggling, a circular versus a circle-free (...) conception of the circumstances of a direct causal relation, and absolute versus model-relative causation. (shrink)

How can a present or future event causally influence one in the past? Even though the case of such a relationship is often quickly dismissed as impossible, this paper suggests that this reaction is hasty and omits interesting as well as substantive arguments and considerations. In an introductory synopsis of the metaphysics of causality, we first present and discuss arguments for and against the possibility of backwards causation. On the other hand, we suggest that a probabilistic notion of causality according (...) to Suppes need not exclude that causes occur temporally after their effects. (shrink)