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Causal Relations via Econometrics

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Author Info
Zaman, Asad

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Abstract

Applied 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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File URL: http://mpra.ub.uni-muenchen.de/10128/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10128.

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Date of creation: 31 May 2008
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Handle: RePEc:pra:mprapa:10128

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Related research
Keywords: causality; regression; Granger Causality; Exogeneity; Cowles Commission; Hendry Methodology; Natural Experiments;

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Find related papers by JEL classification:
C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  2. David F. Hendry & Neil R. Ericsson, 1989. "An econometric analysis of UK money demand in MONETARY TRENDS IN THE UNITED STATES AND THE UNITED KINGDOM by Milton Friedman and Anna J. Schwartz," International Finance Discussion Papers 355, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  3. Leamer, Edward E, 1983. "Let's Take the Con Out of Econometrics," American Economic Review, American Economic Association, vol. 73(1), pages 31-43, March. [Downloadable!] (restricted)
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  4. repec:fth:prinin:455 is not listed on IDEAS
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This page was last updated on 2009-12-1.


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