IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i19p3568-d929809.html
   My bibliography  Save this article

Prior Knowledge-Based Causal Inference Algorithms and Their Applications for China COVID-19 Analysis

Author

Listed:
  • Haifeng Li

    (School of Information, Central University of Finance and Economics, Beijing 102206, China)

  • Mo Hai

    (School of Information, Central University of Finance and Economics, Beijing 102206, China)

  • Wenxun Tang

    (School of Information, Central University of Finance and Economics, Beijing 102206, China)

Abstract

Causal inference has become an important research direction in the field of computing. Traditional methods have mainly used Bayesian networks to discover the causal effects between variables. These methods have limitations, namely, on the one hand, the computing cost is expensive if one wants to achieve accurate results, i.e., exponential growth along with the number of variables. On the other hand, the accuracy is not good enough if one tries to reduce the computing cost. In this study, we use prior knowledge iteration or time series trend fitting between causal variables to resolve the limitations and discover bidirectional causal edges between the variables. Subsequently, we obtain real causal graphs, thus establishing a more accurate causal model for the evaluation and calculation of causal effects. We present two new algorithms, namely, the PC+ algorithm and the DCM algorithm. The PC+ algorithm is used to address the problem of the traditional PC algorithm, which needs to enumerate all Markov equivalence classes at a high computational cost or with immediate output of non-directional causal edges. In the PC+ algorithm, the causal tendency among some variables was analyzed via partial exhaustive analysis. By fixing the relatively certain causality as prior knowledge, a causal graph of higher accuracy is the final output at a low running cost. The DCM algorithm uses the d-separation strategy to improve the traditional CCM algorithm, which can only handle the pairwise fitting of variables, and thus identify the indirect causality as the direct one. By using the d-separation strategy, our DCM algorithm achieves higher accuracy while following the basic criteria of Bayesian networks. In this study, we evaluate the proposed algorithms based on the COVID-19 pandemic with experimental and theoretical analysis. The experimental results show that our improved algorithms are effective and efficient. Compared to the exponential cost of the PC algorithm, the time complexity of the PC+ algorithm is reduced to a linear level. Moreover, the accuracies of the PC+ algorithm and DCM algorithm are improved to different degrees; specifically, the accuracy of the PC+ algorithm reaches 91%, much higher than the 33% of the PC algorithm.

Suggested Citation

  • Haifeng Li & Mo Hai & Wenxun Tang, 2022. "Prior Knowledge-Based Causal Inference Algorithms and Their Applications for China COVID-19 Analysis," Mathematics, MDPI, vol. 10(19), pages 1-20, September.
  • Handle: RePEc:gam:jmathe:v:10:y:2022:i:19:p:3568-:d:929809
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/19/3568/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7390/10/19/3568/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Athey, Susan & Imbens, Guido W., 2015. "Machine Learning for Estimating Heterogeneous Causal Effects," Research Papers 3350, Stanford University, Graduate School of Business.
    2. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emeka Nkoro & Aham Kelvin Uko, 2016. "Exchange Rate and Inflation Volatility and Stock Prices Volatility: Evidence from Nigeria, 1986-2012," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(6), pages 1-4.
    2. Czujack, Corinna & Flôres Junior, Renato Galvão & Ginsburgh, Victor, 1995. "On long-run price comovements between paintings and prints," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 269, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    3. Sotirios Varelas, 2022. "Virtual Immersive Platforms as a Strategic Innovative Destination Marketing Tool in the COVID-19 Era," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    4. Stefan Wager, 2016. "Comments on: A random forest guided tour," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(2), pages 261-263, June.
    5. Loperfido, Nicola, 2010. "A note on marginal and conditional independence," Statistics & Probability Letters, Elsevier, vol. 80(23-24), pages 1695-1699, December.
    6. Hyunsoo Kang, 2022. "Impacts of Income Inequality and Economic Growth on CO 2 Emissions: Comparing the Gini Coefficient and the Top Income Share in OECD Countries," Energies, MDPI, vol. 15(19), pages 1-15, September.
    7. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    8. Bierens, H.J. & Broersma, L., 1991. "The relation between unemployment and interest rate : some international evidence," Serie Research Memoranda 0112, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. Zamani, Mehrzad, 2007. "Energy consumption and economic activities in Iran," Energy Economics, Elsevier, vol. 29(6), pages 1135-1140, November.
    10. Jumah, Adusei & Kunst, Robert M., 2001. "The Effects of Exchange-Rate Exposures on Equity Asset Markets," Economics Series 94, Institute for Advanced Studies.
    11. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    12. Portes, Richard & Santorum, Anita, 1987. "Money and the consumption goods market in China," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 354-371, September.
    13. Alberto Fuertes & Simón Sosvilla-Rivero, 2019. "“Forecasting emerging market currencies: Are inflation expectations useful?”," IREA Working Papers 201918, University of Barcelona, Research Institute of Applied Economics, revised Oct 2019.
    14. Diana Ricciulli-Marín, 2020. "The Fiscal Cost of Conflict: Evidence from La Violencia in Colombia," Cuadernos de Historia Económica 53, Banco de la Republica de Colombia.
    15. Wesam Salah Alaloul & Muhammad Ali Musarat & Muhammad Babar Ali Rabbani & Qaiser Iqbal & Ahsen Maqsoom & Waqas Farooq, 2021. "Construction Sector Contribution to Economic Stability: Malaysian GDP Distribution," Sustainability, MDPI, vol. 13(9), pages 1-26, April.
    16. Xiaojie Xu, 2017. "The rolling causal structure between the Chinese stock index and futures," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 31(4), pages 491-509, November.
    17. Hany Eldemerdash & Hugh Metcalf & Sara Maioli, 2014. "Twin deficits: new evidence from a developing (oil vs. non-oil) countries’ perspective," Empirical Economics, Springer, vol. 47(3), pages 825-851, November.
    18. Olivier Damette & Stéphane Goutte, 2021. "Weather, Pollution, and Covid-19 Spread: A Time Series and Wavelet Reassessment," Springer Books, in: Fateh Belaïd & Anna Cretì (ed.), Energy Transition, Climate Change, and COVID-19, pages 95-106, Springer.
    19. Ibrahim Ari & Muammer Koc, 2018. "Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt," Sustainability, MDPI, vol. 10(11), pages 1-25, October.
    20. H. Gonca DÝLER & F.Çiðdem TARHAN, 2015. "The Relationship Between Current Account Deficit Budget Deficit: A Research On Turkey," Eurasian Business & Economics Journal, Eurasian Academy Of Sciences, vol. 2(2), pages 24-36, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:19:p:3568-:d:929809. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.