Causality in Macroeconomics
by Kevin D. Hoover, KEVIN D AUTOR HOOVER
Category: Business & Economics

These ideas help to clarify philosophical as well as economic issues. The structural approach to causality is then used to evaluate more familiar approaches to causality developed by Granger, by LeRoy, and by Glymour, Spirtes, Scheines, and Kelly, as well as vector autoregressions, the Lucas critique, and the exogeneity concepts of Engle, Hendry, and Richard. A constructive approach to causal inference based on patterns of stability and instability in the face of identified regime changes is developed and illustrated in two empirical case studies of the causal direction between money and prices and between taxes and spending."--Jacket.