A shared problem across the sciences is to make sense of correlational data coming from observations and/or from experiments. Arguably, this means establishing when correlations are causal and when they are not. This is an old problem in philosophy. This paper, narrowing down the scope to quantitative causal analysis in social science, reformulates the problem in terms of the validity of statistical models. Two strategies to make sense of correlational data are presented: first, a 'structural strategy', the goal of which (...) is to model and test causal structures that explain correlational data; second, a 'manipulationist or interventionist strategy', that hinges upon the notion of invariance under intervention. It is argued that while the former can offer a solution the latter cannot. (shrink)

Este documento analiza las siguientes cuestiones: 1) La metodología de la economía y su actual institucionalización. 2) La definición de Economía. 3) Las perspectivas de los economistas acerca de la Economía, sus métodos y justificación. 4) Comprobación y progreso: Popper y Lakatos.5) Los modelos y sus supuestos. 6) Persuasión retórica y verdad. 7) La Economía como un recurso para la Filosofía de la Ciencia. 8) Expansionismo explicativo y relaciones interdisciplinares.

This dissertation shows how initial conditions play a special role in the explanation of contingent and irregular outcomes, including, in the form of geographic context, the special case of uneven development in the social sciences. The dissertation develops a general theory of this role, recognizes its empirical limitations in the social sciences, and considers how it might be applied to the question of uneven development. The primary purpose of the dissertation is to identify and correct theoretical problems in the study (...) of uneven development; it is not intended to be an empirical study. Chapter 1 introduces the basic problem, and discusses why it has become especially salient in debates concerning uneven development. Chapter 2 develops an argument for the importance of initial conditions in the philosophy of science, developed specifically in the context of the Bhaskar/Cartwright ‘open systems’ (and by extension, ‘exogenous factor’) emphasis on the ubiquity of contingency in the universe and rejection of explanation based on laws of nature (regularity accounts) of causation. Chapter 3 makes three claims concerning the concept of contingency, especially as related to the study of society: 1) that there are eight distinct uses of the word contingency, and its many meanings are detrimental to clarity of discussion and thought in history and the social sciences; 2) that it is possible to impose some order on these different uses through developing a classification of contingency into three types based on assumptions concerning possible worlds and determinism; 3) that one of the classes is a special use of the word without relevance to the social sciences, while the two remaining classes are nothing more than a variety of the ‘no hidden factors’ argument in the debate on indeterminism and determinism (and thus related to the concept of spacetime trajectories caused by initial conditions and the interference of these in the form of ‘exogenous factors’ with ‘open systems’). Chapter 4 The concept of explanation based on initial conditions together with laws of nature is widely associated with determinism. In the social sciences determinism has frequently been rejected due to the moral dilemmas it is perceived as presenting. Chapter 4 considers problems with this view. Chapter 5 considers attitudes among geographers, economists, and historians towards using geographic factors as initial conditions in explanation and how they might acceptably be used, in particular their role in ‘anchoring’ aspatial theories of social processes to real-world distributions. Chapter 6 considers the relationship of the statistical methods common in development studies with the trend towards integrating geographical factors into econometric development studies. It introduces the statistical argument on ‘apparent populations’ that arrives at conclusions concerning determinism consistent with Chapters 2 and 3 of the dissertation. The need for the visual interpretation of data with descriptive statistics and maps and their utility in the study of uneven development is discussed with a number of examples. Chapter 7 applies these concepts to the ‘institutions versus geography’ debate in development studies, using Acemoglu, Johnson and Robinson’s 2002 ‘reversal of fortune’ argument as a primary example. Chapter 8 considers possible directions for future work, both theoretical and empirical. Chapter 9 concludes with a discussion of additional possible objections to the use of initial conditions as exogenous factors in explanation. (shrink)

What is a model? Surprisingly, in philosophical texts, this question is asked (sometimes), but almost never – answered. Instead of a general answer, usually, some classification of models is considered. The broadest possible definition of modeling could sound as follows: a model is anything that is (or could be) used, for some purpose, in place of something else. If the purpose is “answering questions”, then one has a cognitive model. Could such a broad definition be useful? Isn't it empty? Can (...) one derive useful consequences from it? I'm trying to show that there is a lot of them. (shrink)

The dominant view among macroeconomists is that macroeconomics reduces to microeconomics, both in the sense that all macroeconomic phenomena arise out of microeconomic phenomena and in the sense that macroeconomic theory—to the extent that it is correct—can be derived from microeconomic theory. More than that, the dominant view believes that macroeconomics should in practice use the reduced microeconomic theory: this is the program of microfoundations for macroeconomics to which the vast majority of macroeconomists adhere. The "microfoundational" models that they actually (...) employ are, however, characterized by another feature: they are highly idealized, even when they are applied as direct characterizations of actual data, which itself consists of macroeconomic aggregates. This paper explores the interrelationship between reductionism and idealization in the microfoundational program and the role of idealization in empirical modeling. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

Much of the recent work on the epistemology of causation has centered on two assumptions, known as the Causal Markov Condition and the Causal Faithfulness Condition. Philosophical discussions of the latter condition have exhibited situations in which it is likely to fail. This paper studies the Causal Faithfulness Condition as a conjunction of weaker conditions. We show that some of the weaker conjuncts can be empirically tested, and hence do not have to be assumed a priori. Our results lead to (...) two methodologically significant observations: (1) some common types of counterexamples to the Faithfulness condition constitute objections only to the empirically testable part of the condition; and (2) some common defenses of the Faithfulness condition do not provide justification or evidence for the testable parts of the condition. It is thus worthwhile to study the possibility of reliable causal inference under weaker Faithfulness conditions. As it turns out, the modification needed to make standard procedures work under a weaker version of the Faithfulness condition also has the practical effect of making them more robust when the standard Faithfulness condition actually holds. This, we argue, is related to the possibility of controlling error probabilities with finite sample size (“uniform consistency”) in causal inference. (shrink)

Opponents of ceteris paribus laws are apt to complain that the laws are vague and untestable. Indeed, claims to this effect are made by Earman, Roberts and Smith in this volume. I argue that these kinds of claims rely on too narrow a view about what kinds of concepts we can and do regularly use in successful sciences and on too optimistic a view about the extent of application of even our most successful non-ceteris paribus laws. When it comes to (...) testing, we test ceteris paribus laws in exactly the same way that we test laws without the ceteris paribus antecedent. But at least when the ceteris paribus antecedent is there we have an explicit acknowledgment of important procedures we must take in the design of the experiments — i.e., procedures to control for “all interferences” even those we cannot identify under the concepts of any known theory. (shrink)

Debates about explanation in the social sciences often proceed without any clear idea what an 'account' of explanation should do. In this paper I take a stance - what I will call contextualism - that denies there are purely formal and conceptual constraints on explanation and takes standards of explanation to be substantive empirical claims, paradigmatically claims about causation. I then use this standpoint to argue for position on issues in the philosophy of social science concerning reduction, idealized models, social (...) mechanisms, functional explanations, inference to the best explanation and interpretive understanding. (shrink)

In this paper I challenge the pernicious aspects of Milton Friedman's methodological outlook that continues to hold sway over mainstream neoclassical economists. I do this by showing how Friedman's own methodological dicta could have been used against him when he famously advanced the expectations critique of the Phillips curve at his presidential address to the American Economic Association. I use this case study to further suggest that psychological and neurophysiological data should not be deemed irrelevant to economic science.

Reichenbach’s ‘principle of the common cause’ is a foundational assumption of some important recent contributions to quantitative social science methodology but no similar principle appears in econometrics. Angrist et al. has argued that the principle is necessary for instrumental variables methods in econometrics, and Angrist Krueger builds a framework using it that he proposes as a means of resolving an important methodological dispute among econometricians. Through analysis of instrumental variables methods and the issue of multicollinearity, we aim to show that (...) the relationship of the principle to econometric methods is more nuanced than implied by previous work but nevertheless may make a valuable contribution to the coherence and validity of existing methods. (shrink)

This chapter explores the idea of one variable making a causal contribution to another variable, and how this idea applies to economics. It also explores the related concept of what-if questions in economics. In particular, it contrasts the modular theory of causal contributions and what-if questions (advocated by interventionists) with the ceteris paribus theory (advocated by Jim Heckman and others). It notes a problem with the modular theory raised by Nancy Cartwright. And it notes how, according to the ceteris paribus (...) theory, causal contributions and what-if questions are often indeterminate in economics. (shrink)

In the recent methodological individualism-holism debate on explanation, there has been considerable focus on what reasons methodological holists may advance in support of their position. We believe it is useful to approach the other direction and ask what considerations methodological individualists may in fact offer in favor of their view about explanation. This is the background for the question we pursue in this paper: Why be a methodological individualist? We start out by introducing the methodological individualism-holism debate while distinguishing two (...) forms of methodological individualism: a form that says that individualist explanations are always better than holist accounts and a form that says that providing intervening individualist mechanisms always makes for better explanations than purely holist ones. Next, we consider four lines of reasoning in support of methodological individualism: arguments from causation, from explanatory depth, from agency, and from normativity. We argue that none of them offer convincing reasons in support of the two explanatory versions of individualism we consider. While there may well be occasions in which individualists’ favorite explanations are superior, we find no reason to think this always must be the case. (shrink)

(No abstract is available for this citation).

Within the causal modeling literature, debates about the Causal Faithfulness Condition have concerned whether it is probable that the parameters in causal models will have values such that distinct causal paths will cancel. As the parameters in a model are fixed by the probability distribution over its variables, it is initially puzzling what it means to assign probabilities to these parameters. I propose that to assign a probability to a parameter in a model is to treat that parameter as a (...) function of a variable in an augmented model. By combining this proposal with widely adopted principles regarding which variables must be included in a model, I argue that the various proposed counterexamples to CFC involving coordinated parameters are not genuine counterexamples. I then consider the cases in which CFC fails due not to coordination, but by coincidence, and propose explanatory and predictive bases for ruling out such coincidences without presuming that they are improbable. The aim of the proposed defenses is not to show that CFC never fails, but rather to argue that its use in a particular context may be defended using general modeling assumptions rather than by relying on claims about how often it fails. (shrink)

The purpose of this paper is twofold: -/- 1) to highlight the widely ignored but fundamental problem of ‘superpopulations’ for the use of inferential statistics in development studies. We do not to dwell on this problem however as it has been sufficiently discussed in older papers by statisticians that social scientists have nevertheless long chosen to ignore; the interested reader can turn to those for greater detail. -/- 2) to show that descriptive statistics both avoid the problem of superpopulations and (...) can be a powerful tool when used correctly. A few examples are provided. -/- The paper ends with considerations of some reasons we think are behind the adherence to methods that are known to be inapplicable to many of the types of questions asked in development studies yet still widely practiced. (shrink)

There is traditionally a division of labor between economics and economic history, the task of economic history being that of studying the evolving constraints of economic mechanisms. Recent theorizing on endogenous structural change challenges this view: if structural change is endogenous to economic mechanisms, any strict division of labor between causal analysis and structural analysis breaks down. Rather such views call for an integration of causal and structural analysis. This paper looks for such a methodology, noting especially the contributions made (...) by two Swedish economists, Johan Åkerman (1896-1982) and Erik Dahmén (1916-2005). With evolutionary, Marxian, Hayekian and critical realist contributions, the paper examines notions of endogenous structural change with the aim of expounding how the notion can be thought in terms of underlying mechanisms to aid such structural analysis. The findings of endogenous mechanisms underlying structural change are crystallized into a mathematical model and a simple methodological framework. (shrink)

There are three questions associated with Simpson’s Paradox (SP): (i) Why is SP paradoxical? (ii) What conditions generate SP?, and (iii) What should be done about SP? By developing a logic-based account of SP, it is argued that (i) and (ii) must be divorced from (iii). This account shows that (i) and (ii) have nothing to do with causality, which plays a role only in addressing (iii). A counterexample is also presented against the causal account. Finally, the causal and logic-based (...) approaches are compared by means of an experiment to show that SP is not basically causal. (shrink)

In the causal inference framework of Spirtes, Glymour, and Scheines, inferences about causal relationships are made from samples from probability distributions and a number of assumptions relating causal relations to probability distributions. The most controversial of these assumptions is the Causal Faithfulness Assumption, which roughly states that if a conditional independence statement is true of a probability distribution generated by a causal structure, it is entailed by the causal structure and not just for particular parameter values. In this paper we (...) show that the addition of the Causal Faithfulness Assumption plays three quite different roles in the SGS framework: it reduces the degree of underdetermination of causal structure by probability distribution; computationally, it justifies reliable causal inference algorithms that would otherwise have to be slower in order to be reliable; and statistically, it implies that those algorithms reliably obtain the correct answer at smaller sample sizes than would otherwise be the case. We also consider a number of variations on the Causal Faithfulness Assumption, and show how they affect each of these three roles. (shrink)

To clarify and illuminate the place of probability in science Ellery Eells and James H. Fetzer have brought together some of the most distinguished philosophers ...

All univocal analyses of causation face counterexamples. An attractive response to this situation is to become a pluralist about causal relationships. "Causal pluralism" is itself, however, a pluralistic notion. In this article, I argue in favor of pluralism about concepts of cause in the social sciences. The article will show that evidence for, inference from, and the purpose of causal claims are very closely linked. Key Words: causation • pluralism • evidence • methodology.

This article examines methodological individualism in terms of the theory that invariance under intervention is the signal feature of generalizations that serve as a basis for causal explanation. This theory supports the holist contention that macro-level generalizations can explain, but it also suggests a defense of methodological individualism on the grounds that greater range of invariance under intervention entails deeper explanation. Although this individualist position is not threatened by multiple-realizability, an argument for it based on rational choice theory is called (...) into question by experimental results concerning preference reversals. Key Words: methodological individualism • mechanisms • explanation • invariance • preference reversal. (shrink)

The anti-causal prophecies of last century have been disproved. Causality is neither a ‘relic of a bygone’ nor ‘another fetish of modern science’; it still occupies a large part of the current debate in philosophy and the sciences. This investigation into causal modelling presents the rationale of causality, i.e. the notion that guides causal reasoning in causal modelling. It is argued that causal models are regimented by a rationale of variation, nor of regularity neither invariance, thus breaking down the dominant (...) Human paradigm. The notion of variation is shown to be embedded in the scheme of reasoning behind various causal models: e.g. Rubin’s model, contingency tables, and multilevel analysis. It is also shown to be latent – yet fundamental – in many philosophical accounts. Moreover, it has significant consequences for methodological issues: the warranty of the causal interpretation of causal models, the levels of causation, the characterisation of mechanisms, and the interpretation of probability. This book offers a novel philosophical and methodological approach to causal reasoning in causal modelling and provides the reader with the tools to be up to date about various issues causality rises in social science. (shrink)

This paper argues that econometricians' explicit adoption of identification conditions in structural equation modelling commits them to read the functional form of their equations in a strong, nonmathematical way. This content, which is implicitly attributed to the functional form of structural equations, is part of what makes equation structural. Unfortunately, econometricians are not explicit about the role functional form plays in signifying structural content. In order to remedy this, the second part of this paper presents an interpretation of the functional (...) form based on Herbert Simon 's definition of causal order. This begins to set out just what the functional form of structural equations represents. ‡I would like to thank Nancy Cartwright and attendants at UCSD Graduate Seminar 2006 for helpful comments. I also want to thank the AHRC for supporting the research for this paper. †To contact the author, please write to: Centre for Philosophy of Natural and Social Science, London School of Economics, London WC2A 2AE, United Kingdom; e-mail: [email protected]. (shrink)

A graphical model is a graph that represents a set of conditional independence relations among the vertices (random variables). The graph is often given a causal interpretation as well. I describe how graphical causal models can be used in an algorithm for constructing partial information about causal graphs from observational data that is reliable in the large sample limit, even when some of the variables in the causal graph are unmeasured. I also describe an algorithm for estimating from observational data (...) (in some cases) the total effect of a given variable on a second variable, and theoretical insights into fundamental limitations on the possibility of certain causal inferences by any algorithm whatsoever, and regardless of sample size. (shrink)

The faithfulness condition (FC) is a useful principle for inferring causal structure from statistical data. The usual motivation for the FC appeals to theorems showing that exceptions to it have probability zero, provided that some apparently reasonable assumptions obtain. However, some have objected that, the theorems notwithstanding, exceptions to the FC are probable in commonly occurring circumstances. I argue that exceptions to the FC are probable in the circumstances specified by this objection only given the presence of a condition that (...) I label homogeneity, and furthermore that this condition typically does not obtain in the FC’s intended domain of application. (shrink)

Social ontology is the study of the nature and properties of the social world. It is concerned with analyzing the various entities in the world that arise from social interaction. -/- A prominent topic in social ontology is the analysis of social groups. Do social groups exist at all? If so, what sorts of entities are they, and how are they created? Is a social group distinct from the collection of people who are its members, and if so, how is (...) it different? What sorts of properties do social groups have? Can they have beliefs or intentions? Can they perform actions? And if so, what does it take for a group to believe, intend, or act? -/- Other entities investigated in social ontology include money, corporations, institutions, property, social classes, races, genders, artifacts, artworks, language, and law. It is difficult to delineate a precise scope for the field (see section 2.1). In general, though, the entities explored in social ontology largely overlap with those that social scientists work on. A good deal of the work in social ontology takes place within the social sciences (see sections 5.1–5.8). -/- Social ontology also addresses more basic questions about the nature of the social world. One set of questions pertains to the constituents, or building blocks, of social things in general. For instance, some theories argue that social entities are built out of the psychological states of individual people, while others argue that they are built out of actions, and yet others that they are built out of practices. Still other theories deny that a distinction can even be made between the social and the non-social. -/- A different set of questions pertains to how social categories are constructed or set up. Are social categories and kinds produced by our attitudes? By our language? Are they produced by causal patterns? And is there just one way social categories are set up, or are there many varieties of social construction? -/- The term ‘social ontology’ has only come into wide currency in recent years, but the nature of the social has been a topic of inquiry since ancient Greece. As a whole, the field can be understood as a branch of metaphysics, the general inquiry into the nature of entities. (shrink)

Some explanations appeal to facts about the causal structure of a system in order to shed light on a particular phenomenon; these are explanations which do more than cite the causes X and Y of some state-of-affairs Z, but rather appeal to “macro-level” causal features—for example the fact that A causes B as well as C, or perhaps that D is a strong inhibitor of E—in order to explain Z. Appeals to these kinds of “macro-level” causal features appear in a (...) wide variety of social scientific and biological research; statements about features such as “patriarchy,” “healthcare infrastructure,” and “functioning DNA repair mechanism,” for instance, can be understood as claims about what would be different in a system with a different causal structure. I suggest interpreting counterfactual questions involving structural features as questions about alternative parameter settings of causal models, and propose an extension of the usual interventionist framework for causal explanation which enables scientists to explore the consequences of interventions on “macro-level” structure. (shrink)

There are three distinct questions associated with Simpson’s paradox. Why or in what sense is Simpson’s paradox a paradox? What is the proper analysis of the paradox? How one should proceed when confronted with a typical case of the paradox? We propose a “formal” answer to the first two questions which, among other things, includes deductive proofs for important theorems regarding Simpson’s paradox. Our account contrasts sharply with Pearl’s causal account of the first two questions. We argue that the “how (...) to proceed question?” does not have a unique response, and that it depends on the context of the problem. We evaluate an objection to our account by comparing ours with Blyth’s account of the paradox. Our research on the paradox suggests that the “how to proceed question” needs to be divorced from what makes Simpson’s paradox “paradoxical.”. (shrink)

Two approaches to evidential reasoning compete in the biomedical and social sciences: the experimental and the pragmatist. Whereas experimentalism has received considerable philosophical analysis and support since the times of Bacon and Mill, pragmatism about evidence has been neither articulated nor defended. The overall aim is to fill this gap and develop a theory that articulates the latter. The main ideas of the theory will be illustrated and supported by a case study on the smoking/lung cancer controversy in the 1950s.

Mechanisms are often characterized as causal structures and the interventionist account of causation is then used to characterize what it is to be a causal structure. The associated modularity constraint on causal structures has evoked criticism against using the theory as an account of mechanisms, since many mechanisms seem to violate modularity. This paper answers to this criticism by making a distinction between a causal system and a causal structure. It makes sense to ask what the modularity properties of a (...) given causal structure are, but not whether a causal system is modular tout court. The counter-examples to the interventionist account are systems in which a particular structure is modular in variables, but not in parameters. A failure of parameter-modularity does not by itself threaten the interventionist interpretation of the structure and the possibility of causally explaining with that structure, but it does mean that knowledge of the structure is not sufficient to constitutively explain system-level properties of the embedding system. (shrink)

In much recent work, invariance under intervention has become a hallmark of the correctness of a causal-law claim. Despite its importance this thesis generally is either simply assumed or is supported by very general arguments with heavy reliance on examples, and crucial notions involved are characterized only loosely. Yet for both philosophical analysis and practicing science, it is important to get clear about whether invariance under intervention is or is not necessary or sufficient for which kinds of causal claims. Furthermore, (...) we need to know what counts as an intervention and what invariance is. In this paper I offer explicit definitions of two different kinds for the notions intervention, invariance, and causal correctness. Then, given some natural and relatively uncontroversial assumptions, I prove two distinct sets of theorems showing that invariance is indeed a mark of causality when the concepts are appropriately interpreted. (shrink)

A notion of delegated causality is introduced here. This subtle kind of causality is dual to interventional causality. Delegated causality elucidates the causal role of dynamical systems at the “edge of chaos”, explicates evident cases of downward causation, and relates emergent phenomena to Gödel’s incompleteness theorem. Apparently rich implications are noticed in biology and Chinese philosophy. The perspective of delegated causality supports cognitive interpretations of self-organization and evolution.

In the recent literature on causal and non-causal scientific explanations, there is an intuitive assumption according to which an explanation is non-causal by virtue of being abstract. In this context, to be ‘abstract’ means that the explanans in question leaves out many or almost all causal microphysical details of the target system. After motivating this assumption, we argue that the abstractness assumption, in placing the abstract and the causal character of an explanation in tension, is misguided in ways that are (...) independent of which view of causation or causal explanation one takes to be most accurate. On major accounts of causation, as well as on major accounts of causal explanation, the abstractness of an explanation is not sufficient for it being non-causal. That is, explanations are not non-causal by dint of being abstract. (shrink)

We start this paper by arguing that causality should, in analogy with force in Newtonian physics, be understood as a theoretical concept that is not explicated by a single definition, but by the axioms of a theory. Such an understanding of causality implicitly underlies the well-known theory of causal nets and has been explicitly promoted by Glymour. In this paper we investigate the explanatory warrant and empirical content of TCN. We sketch how the assumption of directed cause–effect relations can be (...) philosophically justified by an inference to the best explanation. We then ask whether the explanations provided by TCN are merely post-facto or have independently testable empirical content. To answer this question we develop a fine-grained axiomatization of TCN, including a distinction of different kinds of faithfulness. A number of theorems show that although the core axioms of TCN are empirically empty, extended versions of TCN have successively increasing empirical content. (shrink)

Modern empirical macroeconomic models, known as structural autoregressions (SVARs) are dynamic models that typically claim to represent a causal order among contemporaneously valued variables and to merely represent non-structural (reduced-form) co-occurence between lagged variables and contemporaneous variables. The strategy is held to meet the minimal requirements for identifying the residual errors in particular equations in the model with independent, though otherwise not directly observable, exogenous causes (“shocks”) that ultimately account for change in the model. In nonstationary models, such shocks accumulate (...) so that variables have discernible trends. Econometricians have conceived of variables that trend in sympathy with each other (so-called “cointegrated variables”) as sharing one or more of these unobserved trends as a common cause. It is possible for estimates of the values of both the otherwise unobservable individual shocks and the otherwise unobservable common trends to be backed-out of cointegrated systems of equations. The issue addressed in this paper is whether and in what circumstances these values can be regarded as observations of real entities rather than merely artifacts of the representation of variables in the model. The issue is related, on the one hand, to practical methodological problems in the use of SVARs for policy analysis—e.g., does it make sense to estimate of shocks or trends in one model and then use them as measures of variables in a conceptually distinct model? The issue is also related to debates in the philosophical analysis of causation—particularly, whether we are entitled, as assumed by the developers of Bayes-net approaches, to rely on the causal Markov condition (a generalization of Reichenbach’s common-cause condition) or whether cointegration generates a practical example of Nancy Cartwright’s “byproducts” objection to the causal Markov condition. (shrink)

Reichenbach's 'principle of the common cause' is a foundational assumption of some important recent contributions to quantitative social science methodology but no similar principle appears in econometrics. Reiss (2005) has argued that the principle is necessary for instrumental variables methods in econometrics, and Pearl (2009) builds a framework using it that he proposes as a means of resolving an important methodological dispute among econometricians. We aim to show, through analysis of the main problem instrumental variables methods are used to resolve, (...) that the relationship of the principle to econometric methods is more nuanced than implied by previous work, but nevertheless may make a valuable contribution to the coherence and validity of existing methods. (shrink)

This chapter provides an introduction to the study of the philosophical notions of mechanisms and causality in biology and economics. This chapter sets the stage for this volume, Mechanism and Causality in Biology and Economics, in three ways. First, it gives a broad review of the recent changes and current state of the study of mechanisms and causality in the philosophy of science. Second, consistent with a recent trend in the philosophy of science to focus on scientific practices, it in (...) turn implies the importance of studying the scientific methods employed by researchers. Finally, by way of providing an overview of each chapter in the volume, this chapter demonstrates that biology and economics are two fertile fields for the philosophy of science and shows how biological and economic mechanisms and causality can be synthesized. (shrink)

The framework of causal Bayes nets, currently influential in several scientific disciplines, provides a rich formalism to study the connection between causality and probability from an epistemological perspective. This article compares three assumptions in the literature that seem to constrain the connection between causality and probability in the style of Occam's razor. The trio includes two minimality assumptions—one formulated by Spirtes, Glymour, and Scheines (SGS) and the other due to Pearl—and the more well-known faithfulness or stability assumption. In terms of (...) logical strength, it is fairly obvious that the three form a sequence of increasingly stronger assumptions. The focus of this article, however, is to investigate the nature of their relative strength. The comparative analysis reveals an important sense in which Pearl's minimality assumption is as strong as the faithfulness assumption and identifies a useful condition under which it is as safe as SGS's relatively secure minimality assumption. Both findings have notable implications for the theory and practice of causal inference. 1 Introduction2 Background: Inference of Causal Structure in Markovian Causal Models3 Three Assumptions of Simplicity4 A Comparison of P-minimality and Faithfulness5 A Comparison of P-minimality and SGS-minimality6 Methodological Formulations and Prior Knowledge of Causal Order7 Conclusion. (shrink)

(No abstract is available for this citation).

The causal Markov condition (CMC) plays an important role in much recent work on the problem of causal inference from statistical data. It is commonly thought that the CMC is a more problematic assumption for genuinely indeterministic systems than for deterministic ones. In this essay, I critically examine this proposition. I show how the usual motivation for the CMC—that it is true of any acyclic, deterministic causal system in which the exogenous variables are independent—can be extended to the indeterministic case. (...) In light of this result, I consider several arguments for supposing indeterminism a particularly hostile environment for the CMC, but conclude that none are persuasive. Introduction Functional models and directed graphs The causal Markov theorem The causal Markov theorem and genuine indeterminism Are the exogenous variables independent? EPR Conclusion. (shrink)

Causal reasoning is an aspect of learning, reasoning, and decision-making that involves the cognitive ability to discover relationships between causal relata, learn and understand these causal relationships, and make use of this causal knowledge in prediction, explanation, decision-making, and reasoning in terms of counterfactuals. Can we fully automate causal reasoning? One might feel inclined, on the basis of certain groundbreaking advances in causal epistemology, to reply in the affirmative. The aim of this paper is to demonstrate that one still has (...) good skeptical grounds for resisting any conclusions in favour of the automation of causal reasoning. If by causal reasoning is meant the entirety of the process through which we discover causal relationships and make use of this knowledge in prediction, explanation, decision-making, and reasoning in terms of counterfactuals, then one relies besides on tacit knowledge, as might be constituted by or derived from the epistemic faculty virtues and abilities of the causal reasoner, the value systems and character traits of the causal reasoner, the implicit knowledge base available to the causal reasoner, and the habits that sustain our causal reasoning practices. While certain aspects of causal reasoning may be axiomatized and formalized and algorithms may be implemented to approximate causal reasoning, one has to remain skeptical about whether causal reasoning may be fully automated. This demonstration will involve an engagement with Meno’s Paradox. (shrink)

The failure to recognize a correlation as spurious can lead people to adopt strategies to bring about a specific outcome that manipulate something other than a cause of the outcome. However, in a 2008 paper appearing in the journal Analysis, Bert Leuridan, Erik Weber and Maarten Van Dyck suggest that knowledge of spurious correlations can, at least sometimes, justify adopting a strategy aiming at bringing about some change. This claim is surprising and, if true, throws into question the claim of (...) Nancy Cartwright and others that knowledge of laws of association is insufficient for distinguishing effective and ineffective strategies. This paper examines the nature of spurious correlations and their value in crafting strategies for change. The conclusion of the paper is that while knowledge of a spurious correlation may have practical value, the value depends on either having knowledge of the causal structure underlying the correlation or it depends on the use of ‘causal criteria’. (shrink)