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Reconsidering Causation

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  • LeRoy, Stephen F

Abstract

Recent applied work in economics has displayed renewed interest in the problem of characterizing the causal relations that link economic variables. However, many discussions avoid explicit specification ofwhat has to be true about a formal model to justify an assertion that one variable in it causes another. Such specification is supplied here. Related topics, such as determining whether correlation implies causation, or vice-versa, and when causal coefficients can be estimated using ordinary least squares or instrumental variables regressions, are discussed.

Suggested Citation

  • LeRoy, Stephen F, 2024. "Reconsidering Causation," University of California at Santa Barbara, Economics Working Paper Series qt12q3t2vd, Department of Economics, UC Santa Barbara.
    • Handle: RePEc:cdl:ucsbec:qt12q3t2vd
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    References listed on IDEAS

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    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2017. "Undergraduate Econometrics Instruction: Through Our Classes, Darkly," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 125-144, Spring.
    2. Cartwright,Nancy, 2007. "Hunting Causes and Using Them," Cambridge Books, Cambridge University Press, number 9780521860819, November.
    3. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    4. Cartwright,Nancy, 2007. "Hunting Causes and Using Them," Cambridge Books, Cambridge University Press, number 9780521677981, November.
    5. Joshua D. Angrist & Jörn-Steffen Pischke, 2015. "The path from cause to effect: mastering 'metrics," CentrePiece - The magazine for economic performance 442, Centre for Economic Performance, LSE.
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