Figure 5: The supply–demand system and its acyclification. (a) The partial orientation
\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraitd}
}}{{}\hbox{\textstyle{\montraitd}
}}{{}\hbox{\scriptstyle{\montraitd}
}}{{}\hbox{\scriptscriptstyle{\montraitd}
}}}\mkern-1.5mu\leaders{\hbox{\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}}\mkern 0.0mu
}}{\hfill}\mkern-1.5mu\fldr \hfilG\hfil : the three endogenous variables and three equations form a single feedback cluster (dashed box) with the exogenous shifts
XUS,XUD as its parents; all intra-cluster edges are double-undirected. (b) The acyclification
\mathchoice{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\displaystyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\displaystyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\displaystyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\textstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptscriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptscriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptscriptstyle G\hfil
\crcr}}}^{\mathrm{acy}} , the DAG on the variable nodes with an edge
v→v′ whenever
v\in\mathrm{pa}_{\mathchoice{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\displaystyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\displaystyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\displaystyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\textstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptscriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptscriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptscriptstyle G\hfil
\crcr}}}}([v^{\prime}]) ; the two shifts become common parents of all three endogenous variables, which are mutually nonadjacent.
B -separation in
\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraitd}
}}{{}\hbox{\textstyle{\montraitd}
}}{{}\hbox{\scriptstyle{\montraitd}
}}{{}\hbox{\scriptscriptstyle{\montraitd}
}}}\mkern-1.5mu\leaders{\hbox{\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}}\mkern 0.0mu
}}{\hfill}\mkern-1.5mu\fldr \hfilG\hfil coincides with
D -separation in
\mathchoice{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\displaystyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\displaystyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\displaystyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\textstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptstyle G\hfil
\crcr}}}{\vbox{\halign{#\cr\kern-0.7pt\cr\mkern 2.0mu\scriptscriptstyle\mathrel{\mathchoice{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}{{}\hbox{
\montraitd}}}\mkern-1.5mu\leaders{\hbox{
\scriptscriptstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraita}
}}{{}\hbox{\textstyle{\montraita}
}}{{}\hbox{\scriptstyle{\montraita}
}}{{}\hbox{\scriptscriptstyle{\montraita}
}}}\mkern 0.0mu}}{\hfill}\mkern-1.5mu\fldr
\crcr\cr\hfil\scriptscriptstyle G\hfil
\crcr}}}^{\mathrm{acy}} (Lemma 42 ), so the two encode the same conditional independences; but only
\mkern 2.0mu\textstyle\mathrel{\mathchoice{{}\hbox{\displaystyle{\montraitd}
}}{{}\hbox{\textstyle{\montraitd}
}}{{}\hbox{\scriptstyle{\montraitd}
}}{{}\hbox{\scriptscriptstyle{\montraitd}
}}}\mkern-1.5mu\leaders{\hbox{\textstyle\mkern 0.0mu\mathrel{\mathchoice{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}{{}\hbox{
\montraita}}}\mkern 0.0mu
}}{\hfill}\mkern-1.5mu\fldr \hfilG\hfil , which retains the equation nodes, can model interventions.