I see! You are right, then my argument wasn’t correct! I edited the post partially based on your argument above. New version:
Can we also infer that X causes Y?
Let’s concretize the above graphs by adding the conditional probabilities. Graph 1 then looks like this:
Graph 2 is somewhat trickier, because W is not uniquely determined. But one possibility is like this:
Note that W is just the negation of Z here (W=¬Z). Thus, W and Z are information equivalent, and that means graph 2 is actually just graph 1.
Can we find a different variable W such that graph 2 does not reduce to graph 1? I.e. can we find a variable W such that Z is not deterministic given W?
No, we can’t. To see that, consider the distribution P(Z|X,Y,W). By definition of Z, we know that
P(Z|X,Y,W)={1if Z=X XOR Y,0otherwise..
In other words, P(Z|X,Y,W) is deterministic.
We also know that W d-separates Z from X,Y in graph 2:
This d-separation implies that Z is independent from X, Z given W:
P(Z|W)=P(Z|W,X,Y)
As P(Z|X,Y,W) is deterministic, P(Z|W) also has to be deterministic.
So, graph 2 always reduces to graph 1, no matter how we choose W. Analogously, graph 3 and graph 4 also reduce to graph 1, and we know that our causal structure is graph 1:
I see! You are right, then my argument wasn’t correct! I edited the post partially based on your argument above. New version: