Computational Statistics

, 21:151 | Cite as

Constraint-based inference algorithms for structural models with latent confounders— empirical application and simulations

  • Dirk Temme
Article
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Summary

Graphical methods for the discovery of structural models from observational data provide interesting tools for applied researchers. A problem often faced in empirical studies is the presence of latent confounders which produce associations between the observed variables. Although causal inference algorithms exist which can cope with latent confounders, empirical applications assessing the performance of such algorithms are largely lacking. In this study, we apply the constraint based Fast Causal Inference algorithm implemented in the software program TETRAD on a data set containing strategy and performance information about 608 business units. In contrast to the informative and reasonable results for the impirical data, simulation findings reveal problems in recovering some of the structural relations.

Key words

Structural equation modelling Graphical models Constrait-based inference algorithms 

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Copyright information

© Springer-Verlag 2006

Authors and Affiliations

  • Dirk Temme
    • 1
  1. 1.Institute of MarketingHumboldt-University BerlinBerlin

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