We study parameter identifiability of directed Gaussian graphical models with one latent variable. In the scenario we consider, the latent variable is a confounder that forms a source node of the graph and is a parent to all other nodes, which correspond to the observed variables. We give a graphical condition that is sufficient for the Jacobian matrix of the parametrization map to be full rank, which entails that the parametrization is generically finite-to-one, a fact that is sometimes also referred to as local identifiability. We also derive a graphical condition that is necessary for such identifiability. Finally, we give a condition under which generic parameter identifiability can be determined from identifiability of a model associated with a subgraph. The power of these criteria is assessed via an exhaustive algebraic computational study for small models with 4, 5, and 6 observable variables, and a simulation study for large models with 25 or 35 observable variables.
"Identifiability of directed Gaussian graphical models with one latent source." Electron. J. Statist. 10 (1) 394 - 422, 2016. https://doi.org/10.1214/16-EJS1111