• Table of Contents
    • Abstract
    • Keywords
    • Article
      • 1 Philosophers of economics and causality
      • 2 History
        • 2.1 Hume's foundational analysis
        • 2.2 The 19th century: logic and statistics
        • 2.3 The 20th century: causality and identification
      • 3 Alternative approaches to causality in economics
        • 3.1 The inferential structural approach
        • 3.2 The inferential process approach
        • 3.3 The a priori process approach
        • 3.4 Structural vector autoregressions
        • 3.5 The graph-theoretic approach to causal inference
      • 4 From metaphysics to econometric practice
    • See Also
    • Bibliography
    • How to cite this article

causality in economics and econometrics

Kevin D. Hoover
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Economics was conceived as early as the classical period as a science of causes. The philosopher–economists David Hume and J. S. Mill developed the conceptions of causality that remain implicit in economics today. This article traces the history of causality in economics and econometrics, showing that different approaches can be classified on two dimensions: process versus structural approaches, and a priori versus inferential approaches. The variety of modern approaches to causal inference is explained and related to this classification. Causality is also examined in relationship to exogeneity and identification.
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Keywords

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Article

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How to cite this article

Hoover, Kevin D. "causality in economics and econometrics." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 26 October 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_C000569> doi:10.1057/9780230226203.0209

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