Causality in Economics. An Argument in Favour of Scepticism Cover Image

Sposoby poznania relacji przyczynowych w ekonomii. Argument na rzecz sceptycyzmu
Causality in Economics. An Argument in Favour of Scepticism

Author(s): Mariusz Maziarz
Subject(s): Economy, Socio-Economic Research
Published by: Stowarzyszenie Mage.pl
Keywords: causality in economics; Granger-causality

Summary/Abstract: There are three epistemic ways of discovering causality in the contemporary economics. Experiments are applied in a limited number of cases due to the problem of isolation and their costs. Because of these obstacles, economists use theoretical models (i. e. thought experiments). The development of econometrics led to construction of causality-testing methods. Findings based on any of these methods are uncertain. The literature review and case studies of recent economic researches show that scepticism is necessary in causal analysis of an economic phenomenon.. In order to make knowledge on what is a cause and what is an effect more justified, one should apply all three methods. Experiments should be used to discover good axioms for theories. Causes and effects should be deduced from theories and models. Then, hypotheses are to be econometrically tested.

  • Issue Year: 2/2015
  • Issue No: 2
  • Page Range: 59-81
  • Page Count: 23
  • Language: Polish