Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5096008 | Journal of Econometrics | 2014 | 14 Pages |
Abstract
Notions of cause and effect are fundamental to economic explanation. Although concepts such as price effects are intuitive, rigorous foundations justifying causal discourse in the wide range of economic settings remain lacking. We illustrate this deficiency using an N-bidder private-value auction, posing causal questions that cannot be addressed within existing frameworks. We extend the frameworks of Pearl (2000) and White and Chalak (2009) to introduce topological settable systems (TSS), a causal framework capable of delivering the missing answers. Particularly, TSS accommodate choices belonging to general function spaces. Our analysis suggests how TSS enable causal discourse in various areas of economics.
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Halbert White, Haiqing Xu, Karim Chalak,