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Causal Instrumental Variables and Interventions

Published online by Cambridge University Press:  01 January 2022

Julian Reiss
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Abstract

The aim of this paper is to introduce the instrumental variables technique to the discussion about causal inference in econometrics. I show that it may lead to causally incorrect conclusions unless some fairly strong causal background assumptions are made, assumptions which are usually left implicit by econometricians. These assumptions are very similar to, albeit not identical with, James Woodward's definition of an ‘intervention’. I discuss similarities and differences of the two points of view and argue that—understood as a practical method of causal inference—the set presented here is superior.

Type
Philosophy of Social Science
Information
Philosophy of Science , Volume 72 , Issue 5: Proceedings of the 2004 Biennial Meeting of The Philosophy of Science Association. Part I: Contributed Papers , December 2005 , pp. 964 - 976
Copyright
Copyright © The Philosophy of Science Association

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Footnotes

‡

Work on this paper was conducted under the CPNSS research project Causality: Metaphysics and Methods. I am very grateful to the AHRB for funding. Many thanks to Nancy Cartwright for valuable comments on an earlier draft.

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