it's actually an acyclic dependency when unrolled over time
Yes; by introducing time steps and indexing by "at time tn" you can "always" do away with loops by kind of transforming them into spirals going down in time, from the loops they once were. But I wonder if people don't seem to mind that the endless spiral still resembles a loop, that "X at time t1" and "X at time t2" may technically be different nodes, but only in a trivial and uninteresting sense?
You can work DAG magic on such a "linearized" causal structure, I just wonder whether it's actually cutting reality at its joints, and whether there are (commonly used) alternatives.
You should definitely look at the book "Probabilistic Graphical Models" by Daphne Koller, these concepts and more are explained in depth and with numerous examples. I kind of consider it the spiritual successor to Jayne's work.
The reason why having a DAG is important is because it makes inference much easier. There are very efficient and exact algorithms for doing inference over DAGs, whereas inference over general graphs can be extremely hard (often taking exponential time). Once you roll out a loop in this fashion, eventually you reach a point ...
TLDR: Study on death avoidance, which interests a lot of people here, and commentary on what sort of informative priors we should have about health hypotheses.
From Steve Sailer, who is responding to Andrew Gelman, who got sent this study. An observational study showed that people who consumed nuts were less likely to die; Gelman points out that the study's statistics aren't obviously wrong. Sailer brings up an actual RCT of Lipitor from the 90s:
Table 3 of the paper breaks out the hazard ratios by cause of death. The most impressive effects (as measured by the right tail of the 95% CI for pooled men and women for any nut)1 are Heart Disease, All Causes, Other Causes, Cancer, Respiratory Disease, Stroke, Infection, Diabetes, Neurodegenerative Disease, and Kidney Disease.
Steve's categories and the paper's categories don't overlap very well. But it looks to me like if you follow Steve's logic, it's reasonable to believe that nuts have a protective effect against heart disease, and then most of the other effects or non-effects have a common cause with nut consumption, like healthiness / conscientiousness / whatever, rather than being caused by nut consumption. Note the strong negative relationships between nut consumption and BMI or smoking, and the strong positive relationships between nut consumption and physical activity or intake of fruits, vegetables, or alcohol. The hazard ratios are calculated controlling for those variables, but it's still reasonable to see there being a hidden 'health-consciousness' node which noisily affects all of those nodes.
It's also interesting to look at the negative results- the hazard ratio for neurodegenerative disease and stroke was roughly 1, implying that nut-eaters and non-nut eaters had comparable risks, despite 'other causes' having a hazard ratio of 0.87. That weakly implies to me that either health consciousness has no impact on neurodegenerative disease and stroke, or that nuts are harmful for those two categories.
Since heart disease is a huge killer (24% of all deaths in the study group), this study seems like moderate evidence in favor of eating nuts, but it's likely that the total study's effect is overstated. (The study also suggests that tree nuts are probably superior to peanuts; I know various QS people have raised concerns that the kind of nut matters significantly.)
1. This is a heuristic for impressiveness, not the point estimate. It looks like nuts have the strongest effect for kidney disease, with a mean hazard ratio estimate of 0.69- but the upper bound of the 95% CI is 1.26, because only a handful of people died due to kidney disease. The heart disease hazard ratio estimate is 0.74 (0.68-0.81), which is much more believable, even though the point estimate is slightly higher. The point estimate for diabetes is 0.80 (0.54-1.18), which has a mean estimate that's only slightly worse, but diabetes again killed far fewer than heart disease. If you order them by point estimates, the paper is stronger evidence for nuts being useful for dietary reasons, and which method you prefer depends on your priors for how representative this sample is.