Differentiable Cyclic Causal Discovery Under Unmeasured Confounders
Muralikrishnna G. Sethuraman, Faramarz Fekri
TL;DR
We address learning causal structure in systems with cycles and unobserved confounders by introducing DCCD-CONF, a differentiable framework that models nonlinear cyclic SEMs with correlated exogenous noise via contractive implicit flows. The method learns graph structure and confounder distribution by maximizing penalized data likelihood across interventional settings, with a two-stage optimization and unbiased log-determinant estimation to enable scalable training. Theoretical guarantees show that the estimated graph is I-Markov equivalent to the ground truth under appropriate assumptions, and extensive experiments demonstrate improved causal-edge recovery and confounder identification on synthetic data, plus superior predictive performance on real gene-perturbation datasets (Perturb-CITE-seq) and protein signaling benchmarks. This work advances practical causal discovery in realistic settings by jointly handling cycles, nonlinearity, and hidden confounders, with demonstrated gains in both interpretability and predictive accuracy for complex biological networks.
Abstract
Understanding causal relationships between variables is fundamental across scientific disciplines. Most causal discovery algorithms rely on two key assumptions: (i) all variables are observed, and (ii) the underlying causal graph is acyclic. While these assumptions simplify theoretical analysis, they are often violated in real-world systems, such as biological networks. Existing methods that account for confounders either assume linearity or struggle with scalability. To address these limitations, we propose DCCD-CONF, a novel framework for differentiable learning of nonlinear cyclic causal graphs in the presence of unmeasured confounders using interventional data. Our approach alternates between optimizing the graph structure and estimating the confounder distribution by maximizing the log-likelihood of the data. Through experiments on synthetic data and real-world gene perturbation datasets, we show that DCCD-CONF outperforms state-of-the-art methods in both causal graph recovery and confounder identification. Additionally, we also provide consistency guarantees for our framework, reinforcing its theoretical soundness.
