\documentclass{article}
\usepackage{com.braju.graphicalmodels}

\catcode`\@=11%

\pagestyle{empty}

\begin{document}
\TeXtoEPS

\LARGE
\psset{unit=10mm,arrowscale=1.5,linewidth=1.5pt}
\begin{pspicture}(0,0)(12,15)%\showgrid
  \SpecialCoor

  \rput(3,0){\GM@node[observed=false]{psi}} \GM@label[angle=-90]{psi}{$\psi$}

  \rput(0,1){\GM@plate{7}{8}{$T$}}
  \rput(1,3){\GM@node[observed=true]{xt1}} \GM@label[angle=-125]{xt1}{$x_{t1}$}
  \rput(5,3){\GM@node[observed=true]{xtD}} \GM@label[angle=-45]{xtD}{$x_{tD}$}

  \rput(1,5){\GM@node[observed=false]{zt1}} \GM@label[angle=0]{zt1}{$z_{t1}$}
  \rput(5,5){\GM@node[observed=false]{ztD}} \GM@label[angle=0]{ztD}{$z_{tD}$}

  \rput(1,7){\GM@node[observed=false]{qt1}} \GM@label[angle=0]{qt1}{$q_{t1}$}
  \rput(5,7){\GM@node[observed=false]{qtD}} \GM@label[angle=0]{qtD}{$q_{tD}$}

  \rput(8,4){\GM@node[observed=false]{W}} \GM@label[angle=0]{W}{$W$}


  \rput(-1,10){\GM@plate{3}{4}{}}
  \rput(0,11){\GM@node[observed=false]{sigma1K}} \GM@label[angle=0]{sigma1K}{$\sigma_{1k}$}
  \rput(0,13){\GM@node[observed=false]{mu1K}} \GM@label[angle=0]{mu1K}{$\mu_{1k}$}

  \rput(3,12){\GM@node[observed=false]{pi1}} \GM@label[angle=0]{pi1}{$\pi$}

  \rput(5,10){\GM@plate{3}{4}{}}
  \rput(6,11){\GM@node[observed=false]{sigmaDK}} \GM@label[angle=0]{sigmaDK}{$\sigma_{Dk}$}
  \rput(6,13){\GM@node[observed=false]{muDK}} \GM@label[angle=0]{muDK}{$\mu_{Dk}$}

%  \rput(9,12){\GM@node[observed=false]{piD}} \GM@label[angle=0]{piD}{$\pi_{D}$}

  \ncline[arrows=->]{psi}{xt1}
  \ncline[arrows=->]{psi}{xtD}

  \ncline[arrows=->]{zt1}{xt1}
  \ncline[arrows=->]{zt1}{xtD}

  \ncline[arrows=->]{ztD}{xt1}
  \ncline[arrows=->]{ztD}{xtD}

  \ncline[arrows=->]{W}{xt1}
  \ncline[arrows=->]{W}{xtD}

  \ncline[arrows=->]{qt1}{zt1}
  \ncline[arrows=->]{qtD}{ztD}

  \ncline[arrows=->]{pi1}{qt1}
  \ncline[arrows=->]{pi1}{qtD}
%  \ncline[arrows=->]{piD}{qtD}

  \psline[arrows=->](1,10)(1,7.5)
  \psline[arrows=->](6,10)(5,7.5)


\end{pspicture}

\endTeXtoEPS
\end{document}