Template-Type: ReDIF-Article 1.0
Author-Name:  Asad Zaman
Author-Email: asadzaman@alum.mit.edu
Author-Workplace-Name: International Islamic University of Islamabad
Title:  Causal Relations via Econometrics
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.
Classification-JEL: C, C5, C59
Keywords: Causality, Regression, Exogeneity, Hendry Methodology, Natural Experiments
Journal: International Econometric Review
Pages: 36-56
Volume: 2
Issue: 1
Year: 2010
Month: April
File-URL: http://www.era.org.tr/makaleler/29031037.pdf
File-Format: Application/pdf
Handle: RePEc:erh:journl:v:2:y:2010:i:1:p:36-56