Causal Relations via Econometrics

International Econometric Review, Vol 2, No. 1, p 36-56, April 2010

31 Pages Posted: 7 Apr 2009 Last revised: 3 Sep 2012

See all articles by Asad Zaman

Asad Zaman

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE)

Date Written: April 7, 2009

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.

Keywords: causality, regression, exogeneity, Hendry methodology, natural experiments

JEL Classification: C5, C59

Suggested Citation

Zaman, Asad, Causal Relations via Econometrics (April 7, 2009). International Econometric Review, Vol 2, No. 1, p 36-56, April 2010. Available at SSRN: https://ssrn.com/abstract=1374208 or http://dx.doi.org/10.2139/ssrn.1374208

Asad Zaman (Contact Author)

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE) ( email )

Quaid-i-Azam University Campus
P.O.Box 1091
Islamabad, Federal Capital 44000
Pakistan

Register to save articles to
your library

Register

Paper statistics

Downloads
151
Abstract Views
973
rank
197,749
PlumX Metrics