IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2015029.html
   My bibliography  Save this paper

The issue of control in multivariate systems A contribution of structural modelling

Author

Listed:
  • MOUCHART, M.

    (Université catholique de Louvain, CORE, Belgium)

  • WUNSCH, G.

    (Université catholique de Louvain)

  • RUSSO, F.

    (University of Amsterdam)

Abstract

This paper builds upon Judea Pearl’s directed acyclic graphs approach to causality and the tradition of structural modelling in economics and social science. The paper re- examines the issue of control in complex systems with multiple causes and outcomes, in a specific perspective of structural modelling. It begins with three-variable saturated and unsaturated models, and then examines more complex systems including models with collider and latent confounder discussed by Pearl. In particular, focusing on the causes of an outcome, the paper proposes two simple rules for selecting the variables to be controlled for when studying the direct effect of a cause on an outcome of interest or the total effect when dealing with multiple causal paths. This paper presents a model building strategy that allows a statistical model to be considered as structural. The challenge for the model builder amounts to developing an explanation through a recursive decomposition of the joint distribution of the variables congruent with background knowledge and stable with respect to specified changes of the environment.

Suggested Citation

  • Mouchart, M. & Wunsch, G. & Russo, F., 2015. "The issue of control in multivariate systems A contribution of structural modelling," LIDAM Discussion Papers CORE 2015029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2015029
    as

    Download full text from publisher

    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2015.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. D. R. Cox, 1992. "Causality: Some Statistical Aspects," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 155(2), pages 291-301, March.
    2. Michel Mouchart & Federica Russo & Guillaume Wunsch, 2010. "Inferrig Causal Relations by Modelling Structure," Statistica, Department of Statistics, University of Bologna, vol. 70(4), pages 411-432.
    3. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, January.
    4. Hindriks, Jean & Lamy, Guillaume, 2014. "Back to school, back to segregation?," LIDAM Discussion Papers CORE 2014066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Broos, Sébastien & Gautier, Axel, 2014. "Competing one-way essential complements: the forgotten side of net neutrality," LIDAM Discussion Papers CORE 2014064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Hindriks, Jean & Myles, Gareth D., 2013. "Intermediate Public Economics," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262018691, December.
    7. NESTEROV, Yurii & SHIKHMAN, Vladimir, 2015. "Algorithm of price adjustment for market equilibrium," LIDAM Discussion Papers CORE 2015001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    9. Hindriks, Jean & Nishimura, Yukihiro, 2014. "On the timing of tax and investment in fiscal competition models," LIDAM Discussion Papers CORE 2014065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Guillaume Wunsch, 2007. "Confounding and control," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 16(4), pages 97-120.
    11. Giorgio Fagiolo & Alessio Moneta & Paul Windrum, 2007. "A Critical Guide to Empirical Validation of Agent-Based Models in Economics: Methodologies, Procedures, and Open Problems," Computational Economics, Springer;Society for Computational Economics, vol. 30(3), pages 195-226, October.
    12. Fleurbaey, Marc & Maniquet, François, 2015. "Optimal taxation theory and principles of fairness," LIDAM Discussion Papers CORE 2015005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. NESTEROV, Yurii, 2015. "Complexity bounds for primal-dual methods minimizing the model of objective function," LIDAM Discussion Papers CORE 2015003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mouchart, M. & Wunsch, G. & Russo, F., 2015. "The issue of control in multivariate systems, A contribution of structural modelling," LIDAM Discussion Papers ISBA 2015019, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    2. Godin, M. & Hindriks, J., 2015. "A Review of Critical Issues on Tax Design and Tax Administration in a Global Economy and Developing Countries," LIDAM Discussion Papers CORE 2015028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Gabszewicz, J.J. & Marini, M. & Tarola, O., 2015. "Alliance Formation in a Vertically Differentiated Market," LIDAM Discussion Papers CORE 2015030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Balandraud, Eric & Queyranne, Maurice & Tardella, Fabio, 2015. "Largest minimally inversion-complete and pair-complete sets of permutations," LIDAM Discussion Papers CORE 2015009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Dufays, A. & Rombouts, V., 2015. "Sparse Change-Point Time Series Models," LIDAM Discussion Papers CORE 2015032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Pestieau, Pierre & Ponthiere, Gregory, 2016. "Longevity Variations And The Welfare State," Journal of Demographic Economics, Cambridge University Press, vol. 82(2), pages 207-239, June.
    7. Samuel Ferey & Pierre Dehez, 2016. "Multiple Causation, Apportionment, and the Shapley Value," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 143-171.
    8. Yukihiro Nishimura & Pierre Pestieau, 2016. "Efficient taxation with differential risks of dependence and mortality," Economics Bulletin, AccessEcon, vol. 36(1), pages 52-57.
    9. Jean Hindriks & Yukihiro Nishimura, 2017. "Equilibrium leadership in tax competition models with capital ownership: a rejoinder," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 338-349, April.
    10. Christian M. Hafner & Hans Manner & Léopold Simar, 2018. "The “wrong skewness” problem in stochastic frontier models: A new approach," Econometric Reviews, Taylor & Francis Journals, vol. 37(4), pages 380-400, April.
    11. Queyranne, M. & Wolsey, L.A., 2015. "Tight MIP Formulations for Bounded Up/Down Times and Interval-Dependent Start-Ups," LIDAM Discussion Papers CORE 2015036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Madani, M. & Van Vyve, M., 2015. "A MIP framework for non-convex uniform price day-ahead electricity auctions," LIDAM Discussion Papers CORE 2015017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. RUSSO, Federica & MOUCHART, Michel & WUNSCH, Guillaume, 2013. "Confounding and control in a multivariate system. An issue in causal attribution," LIDAM Discussion Papers CORE 2013068, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Vrins, F. & Jeanblanc, M., 2015. "The [phi]-Martingale," LIDAM Discussion Papers CORE 2015022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Dao, N.T. & Davila, J., 2015. "Gender inequality, technological progress, and the demographic transition," LIDAM Discussion Papers CORE 2015038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Pierre Pestieau & Gregory Ponthiere, 2017. "Optimal fertility under age-dependent labour productivity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(2), pages 621-646, April.
    17. Juan Manuel Larrosa, 2016. "Agentes computacionales y análisis económico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(34), pages 87-113, January-J.
    18. Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2014. "On the convergence to the Nash bargaining solution for action-dependent bargaining protocols," Games and Economic Behavior, Elsevier, vol. 86(C), pages 178-183.
    19. Russo, F. & Mouchart, M. & Wunsch, G., 2013. "Confounding and Control in a Multivariate System An issue in causal attribution," LIDAM Discussion Papers ISBA 2013043, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    20. Gräbner, Claudius, 2016. "From realism to instrumentalism - and back? Methodological implications of changes in the epistemology of economics," MPRA Paper 71933, University Library of Munich, Germany.

    More about this item

    Keywords

    Causality; Control; Structural Modelling; Recursive Decomposition; Total Effect; Direct Effect;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2015029. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.