The Econometric Model for Causal Policy Analysis
James J. Heckman, Rodrigo Pinto
Abstract
This paper discusses the econometric model of causal policy analysis and two alternative frameworks that are popular in statistics and computer science. By employing the alternative frameworks uncritically, economists ignore the substantial advantages of an econometric approach, resulting in less informative analyses of economic policy. We show that the econometric approach to causality enables economists to characterize and analyze a wider range of policy problems than alternative approaches.
Topics & Concepts
Econometric modelEconomicsCausality (physics)EconometricsEconometric analysisPolicy analysisRange (aeronautics)Economic modelCausal modelMacroeconomicsStatisticsPolitical scienceLawPhysicsQuantum mechanicsMathematicsMaterials scienceComposite materialAdvanced Causal Inference TechniquesStatistical Methods and InferenceBayesian Modeling and Causal Inference