Causal truthmakers vs Causal interpretations Federica Russo Philosophy, Kent.

Slides:



Advertisements
Similar presentations
Theoretical Pluralism in the Study of Unemployment Aims: –1) to define and apply theoretical pluralism –2) to note that studies of unemployment can benefit.
Advertisements

Copyright ©2000, South-Western College Publishing International Economics By Robert J. Carbaugh 7th Edition Chapter 14: Balance-of-payments adjustments.
Levels of causation and the interpretation of probability Seminar 1 Federica Russo Philosophy, Louvain & Kent.
Levels of causation and the interpretation of probability Seminar 2 Federica Russo Philosophy, Louvain & Kent.
AS/AD Model Review.
What is Social Theory?. Theory Harrington 2005: 1-3 Greek word theōria, opp. of praxis contemplation / reflection Reflection on the value and meaning.
Chapter: ©2009  Worth Publishers >> Krugman/Wells Macroeconomics: Events and Ideas 17 CHECK YOUR UNDERSTANDING.
We Forgot Everything Keynes Taught Us Robert Skidelsky The Washington Post 19/10/2008.
Copyright © 2010 Pearson Addison-Wesley. All rights reserved. Chapter 24 Money and Inflation.
Causality, Mechanisms and Modularity: Structural Models in Econometrics Damien Fennell Centre for the Philosophy of Natural and Social Science London School.
A non-manipulationist account of inviariance Federica Russo Philosophy, Kent.
Economic Policymaking
Introduction Macroeconomics is the study of the structure and performance of national economies and of the government policies used to influence economic.
Does the Money Supply Matter?
Mechanistic evidence for causal inference Phyllis Illari University of Kent Disambiguating the RWT.
Mechanisms versus Difference-Making Examples from genetics and molecular biology Gry Oftedal 2009 University of Oslo.
Federal Reserve and Monetary Policy. Formal Structure of the Fed THE FEDERAL RESERVE (FED)
Monetary Transmission Mechanism Chapter 23. Two Types of Economic Models 1. Reduced Form 2. Structural.
Chapter 14: Stabilization Policy
1 Wither the Phillips Curve? Activist demand management or Laissez – faire ?
Kent Where causal dualism comes from Monika Koeppl Causality, Cognition and the Constitution of Scientific Phenomena Department of Philosophy University.
On the causal interpretation of statistical models in social research Alessio Moneta & Federica Russo.
Macroeconomic Themes:51 New Keynesian Revival They use the micro foundations approach as used by the New Classical school. They argue that the Keynesian.
Monetary and Fiscal Policy
Measuring variations Causality and causal modelling in the social sciences Federica Russo Philosophy, Louvain & Kent.
Ch. 16: Expectations Theory and the Economy
Chapter 17 Economic Policymaking. Capitalism Private individuals own the principal means of production Prices and wages determined by Supply and Demand.
THINKING LIKE AN ECONOMIST Chapter 2 Copyright © 2014 by Nelson Education Ltd.2-1.
Chapter 28 Inflation David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith.
1 Chapter 27 The Phillips Curve and Expectations Theory Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western.
Macro Chapter 14 Modern Macroeconomics and Monetary Policy.
Supply-Side Economics Economics at Klein Oak High School Fall 2003.
1 Ch. 15: Expectations Theory and the Economy James R. Russell, Ph.D., Professor of Economics & Management, Oral Roberts University ©2005 South-Western.
Chapter 17 Stabilization in an Integrated World Economy.
Unit 4: Banking Section 2: What affects your $$$.
ECONOMIC POLICY (Or… “How Many Harvard Economists Does It Take to Craft an Economy Policy?”
Chapter 14 Taxes and Government Spending Taxes Tax – Financial charges imposed on individuals and businesses by a government Purposes of taxes To provide.
Chapter 27 Money and Inflation Money and Inflation: The Evidence “Inflation is always and everywhere a monetary phenomenon” (Milton Friedman) Evidence.
Macro Chapter 14 Modern Macroeconomics and Monetary Policy.
Abel & Bernanke Ch. 8, Key Macroeconomic Theories of the Business Cycle.
FEDERAL RESERVE (FED) *** In charge of the nation’s money supply.
Macroeconomics. Chapter One Introduction Macroeconomics : 1. Definition - macroeconomics is concerned with the behavior of the economy as a whole-----booms.
Economics Chapter 17 Stabilizing the National Economy.
MACROECONOMIC OBJECTIVES OF THE GOVERNMENT. Learning Objectives Identify the four major macroeconomic objectives; Explain how the government can control.
Congress The President BUDGET TaxesSpending Fiscal Policy.
The Phillips Curve Unemployment vs. Inflation Managing the short run trade-off.
1 Chapter 27 Practice Quiz Tutorial The Phillips Curve and Expectations Theory ©2000 South-Western College Publishing.
Readings in Economics Fall Semester 2012 Sean McCormack.
Fiscal Policy Today’s LEQ: How do government policies and actions impact economic stability?
No 01. Chapter 1 Introduction to Macroeconomics. Chapter Outline What Macroeconomics Is About What Macroeconomists Do Why Macroeconomists Disagree.
Phillips Curve Analysis Inflation & Unemployment Managing the short run trade-off.
Fiscal Policy Fiscal Policy - Government effort to control the economy and maintain stable prices, full employment, and economic growth. Fiscal Policy.
Unit 3: Aggregate Demand and Supply and Fiscal Policy 1.
Fiscal Policy vs Monetary Policy. Fiscal Policy The word fiscal simply means “of or relating to government revenue or taxes” Fiscal Policy is the governments.
FISCAL POLICY: A TWO-ACT PLAY
Chapter 16: The Federal Reserve & Monetary Policy Section 4: Applying Monetary and Fiscal Policy pgs
The Keynesian Economic Theory
International Economics By Robert J. Carbaugh 9th Edition
John Maynard Keynes vs. Friedrich Von Hayek
Lecture 14: AD-AS + The Phillips Curve
The Phillips Curve Unemployment vs. Inflation
If You Aren’t Dong Arguments, You Aren’t Doing Evidence
Macro Section IV, Review with clickers 15 second timer after I finish reading the question. Wait for the count-down timer before you respond.
John Maynard Keynes vs. Friedrich Von Hayek
Economic Policymaking
What produces high GDP & low Unemployment?
2-Types of Inflation Demand-Pull Inflation: Cost-Push Inflation
Problems, Policy, and The Fed
Macroeconomic Theories
Demand side v. Supply side
Presentation transcript:

Causal truthmakers vs Causal interpretations Federica Russo Philosophy, Kent

Background Joint work with Alessio Moneta on the causal interpretation of econometric models Two ideas Work out the details of the distinction statistical model vs causal model Complement methodological arguments with philosophical considerations about ‘interpreting an econometric model causally’

interpreting What’s interpreting an econometric model causally?

Examples of causal claims (in economics/econometrics) Keynesian economics – Employment is a function of demand, not supply Keynesian policy – Government actions can change unemployment, by intervening on fiscal deficit (e.g. tax cuts) and monetary policy (e.g. interests rates) Friedman’s monetary theory – Price inflation and money supply are (causally) related Phillips’ curve – The lower the unemployment in an economy, the higher the inflation rates …

Interpreting causal claims (in economics/econometrics) Find what makes the causal claim true Interpreting a claim is finding its truthmaker(s) Establish whether the causal model valid Interpreting a claim is an epistemic activity

truthmakers The philosophers’ hunt for truthmakers … that is, what makes a causal claim true Difference-makers Probabilistic, Counterfactual, Manipulation Mechanisms Physical processes Complex-system mechanisms 6

Anything wrong with the hunt? Conceptual analysis in philosophy of causality What explicates the concept of ‘causality’ What makes causal claims true What is causality, metaphysically Conceptual analysts Failed to distinguish between evidence and concept Lost on the way scientific practices Forgot the notion of validity 7

interpreting What’s interpreting an econometric model causally? An epistemic activity …

In the footprints of epistemic theorists Evidence and concept Evidential pluralism: difference-making and mechanistic considerations Conceptual monism: causation is an inferential map Causality: an epistemic category to interpret the world rather than a physical relation in our ontology 9

Interpreting Interpreting in causal terms … valid … is deciding whether a model is valid or not Making successful inferences Not merely dependent on the physical existence of mechanisms Mechanisms have explanatory import Mechanistic and difference-making evidential components are tangled 10

The causal interpretation is model-dependent Causal conclusions depend on the statistical machinery from which they are inferred and on background knowledge used in model building Not a bad thing after all Causation is not a ‘all or nothing’ affair Nor a ‘once and for all’ affair 11

Concluding thoughts how to interpret The hunt for truthmakers does not answer the question of how to interpret models causally validity The causal interpretation of models is a matter of validity, rather than truth The issue arises outside economics too – the argument can therefore be generalised