Causal Relations via Econometrics
AbstractApplied econometric work takes a superficial approach to causality. Understanding economic affairs, making good policy decisions, and progress in the economic discipline depend on our ability to infer causal relations from data. We review the dominant approaches to causality in econometrics, and suggest why they fail to give good results. We feel the problem cannot be solved by traditional tools, and requires some out-of-the-box thinking. Potentially promising approaches to solutions are discussed.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10128.
Date of creation: 31 May 2008
Date of revision:
causality; regression; Granger Causality; Exogeneity; Cowles Commission; Hendry Methodology; Natural Experiments;
Other versions of this item:
- C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-05 (All new papers)
- NEP-ECM-2008-09-05 (Econometrics)
- NEP-HPE-2008-09-05 (History & Philosophy of Economics)
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