Causality and Econometrics

Causality and Econometrics

Econometrics II Lecture 3: Regression and Causality

Causality in Economics and Econometrics

Causal Relations via Econometrics

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 tool...

The New Palgrave Dictionary of Economics Online causality in economics and econometrics

Economics was conceived as early as the classical period as a science of causes. The philosopher–economists David Hume and J. S. Mill developed the conceptions of causality that remain implicit in economics today. This article traces the history of causality in economics and econometrics, showing that different approaches can be classified on two dimensions: process versus structural approaches...