Disproving Causal Relationships Using Observational Data*

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 2009
Volume: 71
Issue: 3
Pages: 357-374

Authors (3)

Henry L. Bryant (not in RePEc) David A. Bessler (Texas A&M University) Michael S. Haigh (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Economic theory is replete with causal hypotheses that are scarcely tested because economists are generally constrained to work with observational data. We describe a method for testing a hypothesis that one observed random variable causes another. Contingent on a sufficiently strong correspondence between the two variables, an appropriately related third variable can be employed for the test. The logic of the procedure naturally suggests strong and weak grounds for rejecting the causal hypothesis. Monte Carlo results suggest that weakly grounded rejections are unreliable for small samples, but reasonably reliable for large samples. Strongly grounded rejections are highly reliable, even for small samples.

Technical Details

RePEc Handle
repec:bla:obuest:v:71:y:2009:i:3:p:357-374
Journal Field
General
Author Count
3
Added to Database
2026-01-24