Kluve, Jochen () (Alfred Weber Institute, University of Heidelberg and IZA, Bonn)
Abstract
Causal inference in the empirical sciences is based on counterfactuals. This paper presents the counterfactual account of causation in terms of Lewis's possible-world semantics, and reformulates the statistical potential outcome framework and its underlying assumptions using counterfactual conditionals. I discuss varieties of causally meaningful counterfactuals for the case of a finite number of treatments, and illustrate these using a simple set-theoretical framework. The paper proceeds to examine proximity relations between possible worlds, and discusses implications for empirical practice.
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
354.
Find related papers by JEL classification: B30 - Schools of Economic Thought and Methodology - - History of Thought: Individuals - - - General C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Other Z00 - Other Special Topics - - General - - - General
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