Causal diagrams are visual representations that illustrate the relationships between different variables or factors. They help to clarify how one variable may influence another, making it easier to understand complex systems. By using arrows to indicate directionality, these diagrams can show direct and indirect effects, helping researchers and decision-makers identify potential causes and effects. These diagrams are commonly used in fields like epidemiology, economics, and social sciences to analyze data and inform policy decisions. They can simplify the process of identifying confounding variables and guide the development of effective interventions by clearly mapping out the causal pathways involved.