The Philosophy of Causality in Economics: Causal Inferences and Policy Proposals

The Philosophy of Causality in Economics examines the meaning of causal claims made by economists and the philosophical presuppositions underlying the research methods used. It discusses five key causal approaches: the regularity approach, probabilistic theories, counterfactual theories, mechanisms, and interventions and manipulability. Each chapter opens with a summary of literature on the relevant approach and discusses its reception among economists. The book analyzes the meaning of the causal claim put forward and reconstructs the philosophical presuppositions accepted implicitly by economists. It also considers the strengths and limitations of each method of causal inference in the context of using the results as evidence for policymaking.

Format: Paperback / softback
Length: 208 pages
Publication date: 13 December 2021
Publisher: Taylor & Francis Ltd

Approximately one in six top economic research papers draws an explicitly causal conclusion. However, what do economists mean when they conclude that A 'causes B'? Does 'cause' say that we can influence B by intervening on A, or is it merely a label for the correlation of variables? Do quantitative analyses of observational data followed by such causal inferences constitute sufficient grounds for guiding economic policymaking?

The Philosophy of Causality in Economics delves into these critical questions by examining the meaning of causal claims made by economists and the philosophical presuppositions underlying the research methods employed. The book explores five key causal approaches: the regularity approach, probabilistic theories, counterfactual theories, mechanisms, and interventions and manipulability. Each chapter begins with a summary of literature on the relevant approach, discussing its reception among economists. The text then details case studies, examining papers that have adopted the approach to highlight the methods of causal inference used in contemporary economics. It analyzes the meaning of the causal claim put forward and reconstructs the philosophical presuppositions accepted implicitly by economists. Furthermore, the book considers the strengths and limitations of each method of causal inference in the context of using the results as evidence for policymaking.

This book is a valuable resource for those interested in literature on the philosophy of economics, as well as the philosophy of causality and economic methodology in general. It provides a comprehensive and insightful examination of the complex issues surrounding causal inference in economics, offering valuable insights for scholars, researchers, and policymakers alike.

Weight: 348g
Dimension: 155 x 235 x 18 (mm)
ISBN-13: 9780367494353