Causality in Econometric Modeling. From Theory to Structural Causal Modeling

M. Mouchart, Renzo Orsi and G. Wunsch

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper examines different approaches for assessing causality as typically followed in econometrics and proposes a constructive perspective for improving statistical models elaborated in view of causal analysis. Without attempting to be exhaustive, this paper examines some of these approaches. Traditional structural modeling is first discussed. A distinction is then drawn between model-based and design-based approaches. Some more recent developments are examined next, namely history-friendly simulation and information-theory based approaches. Finally, in a constructive perspective, structural causal modeling (SCM) is presented, based on the concepts of mechanism and sub-mechanisms, and of recursive decomposition of the joint distribution of variables. This modeling strategy endeavors at representing the structure of the underlying data generating process. It operationalizes the concept of causation through the ordering and role-function of the variables in each of the intelligible sub-mechanisms.

JEL-codes: C01 C15 C18 C51 C54 (search for similar items in EconPapers)
Date: 2020-02
New Economics Papers: this item is included in nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://amsacta.unibo.it/6337/1/WP1143.pdf (application/pdf)

Related works:
Working Paper: Causality in Econometric Modeling: From Theory to Structural Causal Modeling (2022)
Working Paper: Causality in econometric modeling. From theory to structural causal modeling (2020)
Working Paper: Causality in econometric modeling. From theory to structural causal modeling (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp1143

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().