Causal inference for structural equations: With an application to wage-price spiral

Chen, P; Hsiao, C

Causal inference for structural equations: With an application to wage-price spiral

Chen, P Hsiao, C

Permalink

Publisher:: Springer
Publication Type:: Journal Article
Citation:: Computational Economics, 2010, 36 (1), pp. 17 - 36
Issue Date:: 2010-01

Closed Access

	Filename	Description	Size
	2009002743OK.pdf		364.23 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Chen, P	en_US
dc.contributor.author	Hsiao, C	en_US
dc.date.issued	2010-01	en_US
dc.identifier.citation	Computational Economics, 2010, 36 (1), pp. 17 - 36	en_US
dc.identifier.issn	0927-7099	en_US
dc.identifier.uri	http://hdl.handle.net/10453/13899
dc.description.abstract	Economic theories are often formulated as a system of structural equations. These structural equations imply genuinely causal relations, i.e., we regard the right-hand side variables as the causes and the left-hand side variables as the effects. In this paper we show that regression is not the proper way to infer causal relations. Based on the theory of inferred causation we propose a method to derive structural equations from multivariate time series. We apply this method to study the wage-price spiral for the Australia economy.	en_US
dc.publisher	Springer	en_US
dc.relation.ispartof	Computational Economics	en_US
dc.relation.isbasedon	10.1007/s10614-010-9202-6	en_US
dc.subject.classification	Economics	en_US
dc.title	Causal inference for structural equations: With an application to wage-price spiral	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	36	en_US
utslib.for	1499 Other Economics	en_US
utslib.for	1403 Econometrics	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.issue	1	en_US
pubs.volume	36	en_US

Abstract:

Economic theories are often formulated as a system of structural equations. These structural equations imply genuinely causal relations, i.e., we regard the right-hand side variables as the causes and the left-hand side variables as the effects. In this paper we show that regression is not the proper way to infer causal relations. Based on the theory of inferred causation we propose a method to derive structural equations from multivariate time series. We apply this method to study the wage-price spiral for the Australia economy.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/13899