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Use of SCM to Examine Counterfactuals
Examining a counterfactual using a structural causal model involves three steps. The approach is valid regardless of the form of the model relationships (linear or otherwise).
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Abduct Apply abductive reasoning (logical inference that uses observation to find the simplest/most likely explanation) to estimate , the proxy for the unobserved variables on the specific observation that supports the counterfactual.
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Act For a specific observation, use the do operator to establish the counterfactual (e.g., m=0), modifying the equations accordingly.
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Predict Calculate the values of the output (y) using the modified equations.
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