Causal Discovery for Linear DAGs with Dependent Latent Variables via Higher-order Cumulants

This paper addresses the problem of estimating causal directed acyclic graphs in linear non-Gaussian acyclic models with latent confounders (LvLiNGAM). Existing methods assume mutually independent latent confounders or cannot properly handle models with causal relationships among observed variables. We propose a novel algorithm that identifies causal DAGs in LvLiNGAM, allowing causal structures among latent variables, among observed variables, and between the two. The proposed method leverages higher-order cumu-lants of observed data to identify the causal structure. Extensive simulations and experiments with real-world data demonstrate the validity and practical utility of the proposed algorithm. Introduction Estimating causal directed acyclic graphs (DAGs) in the presence of latent confounders has been a major challenge in causal analysis. Conventional causal discovery methods, such as the Peter-Clark (PC) algorithm [1], Greedy Equivalence Search (GES) [2], and the Linear Non-Gaussian Acyclic Model (LiNGAM) [3, 4], focus solely on the causal model without latent confounders. Fast Causal Inference (FCI) [1] extends the PC algorithm to handle latent variables, recovering a partial ancestral graph (PAG) under the faithfulness assumption. Greedy Fast Causal Inference (GFCI) [6] hybridizes GES and FCI but inherits the limitation of FCI. The assumption of linearity and non-Gaussian disturbances in the causal model enables the identification of causal structures beyond the PAG. The linear non-Gaussian acyclic model with latent confounders (LvLiNGAM) is an extension of LiNGAM that incorporates latent confounders. Hoyer et al. [7] demonstrated that LvLiNGAM can be transformed into a canonical model in which all latent variables are mutually independent and causally precede the observed variables.