What is a causal model?

Causal models are analytical frameworks that help identify and represent cause-and-effect relationships between variables. They are used to understand how changes in one factor directly influence another, often using diagrams or mathematical equations. Causal models are essential in fields like statistics, economics, and data science for making predictions, guiding interventions, and informing decision-making. Unlike correlation-based approaches, causal models aim to uncover the true mechanisms driving observed outcomes.