cs.LGFeb 16, 2026

Traceable Latent Variable Discovery Based on Multi-Agent Collaboration

Authors: Huaming Du, Tao Hu, Yijie Huang, Yu Zhao, Guisong Liu, Tao Gu, Gang Kou, Carl Yang

Organizations: Southwestern University of Finance and Economics, Chengdu, Sichuan, China · Hunan University of Technology and Business, Xiangjiang Laboratory, Hunan, China · Emory University, Atlanta, Georgia, United States

Abstract

Revealing the underlying causal mechanisms in the real world is crucial for scientific and technological progress. Despite notable advances in recent decades, the lack of high-quality data and the reliance of traditional causal discovery algorithms (TCDA) on the assumption of no latent confounders, as well as their tendency to overlook the precise semantics of latent variables, have long been major obstacles to the broader application of causal discovery. To address this issue, we propose a novel causal modeling framework, TLVD, which integrates the metadata-based reasoning capabilities of large language models (LLMs) with the data-driven modeling capabilities of TCDA for inferring latent variables and their semantics. Specifically, we first employ a data-driven approach to construct a causal graph that incorporates latent variables. Then, we employ multi-LLM collaboration for latent variable inference, modeling this process as a game with incomplete information and seeking its Bayesian Nash Equilibrium (BNE) to infer the possible specific latent variables. Finally, to validate the inferred latent variables across multiple real-world web-based data sources, we leverage LLMs for evidence exploration to ensure traceability. We comprehensively evaluate TLVD on three de-identified real patient datasets provided by a hospital and two benchmark datasets. Extensive experimental results confirm the effectiveness and reliability of TLVD, with average improvements of 32.67% in Acc, 62.21% in CAcc, and 26.72% in ECit across the five datasets.

Figures & tables

Appendix figures & tables6 assets

Supplementary material from the paper’s appendix.

Appendix

Explore similar work

Jul 5, 2026

MDL Meets Latent Confounders: LNML-based Causal Discovery

Causal discovery with nonlinear mechanisms and latent confounders remains challenging. Existing methods often rely on either linear assumptions or causal sufficiency, limiting their applicability. We propose an MDL-based causal discovery framework that explicitly accounts for latent confounders while allowing flexible nonlinear mechanisms by minimizing the luckiness normalized maximum likelihood (LNML) code-length. The causal relationship between each variable pair is determined by selecting the shortest code-length of the causal model, and we introduce the notion of ΔΔ-pseudo-collinearity to identify dependencies induced by latent confounders. Based on these ideas, we develop a greedy algorithm, termed Pseudo-Collinearity Guided Causal Discovery (PCG-CD). Experiments on synthetic and real-world datasets demonstrate that the proposed method accurately recovers directed causal relationships and effectively detects latent confounders.
May 11, 2026

A Recursive Decomposition Framework for Causal Structure Learning in the Presence of Latent Variables

Constraint-based causal discovery is widely used for learning causal structures, but heavy reliance on conditional independence (CI) testing makes it computationally expensive in high-dimensional settings. To mitigate this limitation, many divide-and-conquer frameworks have been proposed, but most assume causal sufficiency, i.e., no latent variables. In this paper, we show that divide-and-conquer strategies can be theoretically generalized beyond causal sufficiency to settings with latent variables. Specifically, we propose a recursive decomposition framework, termed DiCoLa, that enables divide-and-conquer causal discovery in the presence of latent variables. It recursively decomposes the global learning task into smaller subproblems and integrates their solutions through a principled reconstruction step to recover the global structure. We theoretically establish the soundness and completeness of the proposed framework. Extensive experiments on synthetic data demonstrate that our approach significantly improves computational efficiency across a range of causal discovery algorithms, while experiments on a real-world dataset further illustrate its practical effectiveness.
Apr 24, 2026

From Local to Cluster: A Unified Framework for Causal Discovery with Latent Variables

Latent variables pose a fundamental challenge to causal discovery and inference. Conventional local methods focus on direct neighbors but fail to provide macro level insights. Cluster level methods enable macro causal reasoning but either assume clusters are known a priori or require causal sufficiency. Moreover, directly applying single variable causal discovery methods to cluster level problems violates causal sufficiency and leads to incorrect results. To overcome these limitations, this paper proposes L2C (Local to Cluster Causal Abstraction), a unified framework that bridges local structure learning and cluster level causal discovery. Unlike prior work that requires a complete manual assignment of micro variables to clusters, L2C discovers the partition automatically from local causal patterns. Our solution leverages a cluster reduction theorem to reduce any cluster to at most three nodes without loss of causal information, applies local causal discovery to identify direct causes, effects, and V structures in the presence of latent variables, and performs macro level causal inference via cluster level calculus on the learned cluster graph. L2C does not assume causal sufficiency, as latent variables are handled through local discovery. Theoretical analysis shows that L2C ensures soundness, atomic completeness, and computational efficiency. Extensive experiments on synthetic and real world data demonstrate that L2C accurately recovers ground truth clusters and achieves superior macro causal effect identification compared to existing baselines.