IDEAS home Printed from https://ideas.repec.org/a/oup/emjrnl/v28y2025i1p1-20..html
   My bibliography  Save this article

Philip G. Wright, directed acyclic graphs, and instrumental variables

Author

Listed:
  • Jaap H Abbring
  • Victor Chernozhukov
  • Iván Fernández-Val

Abstract

Wright (1928) deals with demand and supply of oils and butter. In Appendix B of this book, Philip Wright made several fundamental contributions to causal inference. He introduced a structural equation model of supply and demand, established the identification of supply and demand elasticities via the method of moments and directed acyclical graphs, developed empirical methods for estimating demand elasticities using weather conditions as instruments, and proposed methods for counterfactual analysis of the welfare effect of imposing tariffs and taxes. Moreover, he took all of these methods to data. These ideas were far ahead, and much more profound than, any contemporary theoretical and empirical developments on causal inference in statistics or econometrics. This editorial aims to present P. Wright's work in a more modern framework, in a lecture note format that can be useful for teaching and linking to contemporary research.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jaap H Abbring & Victor Chernozhukov & Iván Fernández-Val, 2025. "Philip G. Wright, directed acyclic graphs, and instrumental variables," The Econometrics Journal, Royal Economic Society, vol. 28(1), pages 1-20.
    • Handle: RePEc:oup:emjrnl:v:28:y:2025:i:1:p:1-20.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ectj/utaf006
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    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:oup:emjrnl:v:28:y:2025:i:1:p:1-20.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.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.