Estimating causal relationships

The aim to raise awareness of the omitted variable bias (i.e., one special form of endogeneity) and highlight its severity for causal claims. Firstly, we demonstrate via analytic proof that omitting a relevant variable from a model which explains the independent and dependent variable leads to biased estimates. Secondly, we offer an easy-to-understand visualization for the problem.

10p paddington36 04-01-2022 23 1   Download

This paper examines the Mexican manufacturing industry’s profitability-growth relationship at the sectoral level, considering three theories: business growth causes profitability (classical), profitability explains business growth (evolutionary), or negative link as a rule (the managerialism view). Using a vector error correction model alongside quadratic and piecewise regression equations produced results estimating bidirectional causality

12p lazzaro 30-12-2021 8 1   Download

This study aims to examine the nexus between tourism, economic growth, and CO2 emissions in Pakistan. We examined the asymmetric relationship between tourism, economic growth, and CO2 emissions for the period 1991 to 2019. We applied NARDL technique, and Granger Causality to predict results. Moreover, we also employed ADF, PP unit root test, Zivot and Andrews test for structural breaks. The nonlinear autoregressive distributed lag is the most appropriate econometric estimator in the case if asymmetric association exists among the variables.

8p caygaocaolon11 18-04-2021 30 1   Download

The current study examines the empirical relation between energy consumption and industrialization concerning other macroeconomic variables like as infrastructure, manufacturing, and capital formation with covering the period from 1975 to 2018. The Johansen co-integration estimation asserts the long-run association in this process. Whatever granger causality shows the bidirectional causality between electricity consumption and industrialization. Capital formation and industrialization have the bidirectional causality also.

9p caygaocaolon11 18-04-2021 18 1   Download

The literature has suggested that financial development and electricity consumption are key determinants of economic growth. However, existing studies usually was applied the frequentist inference, which is an outdated estimator. By applying the Bayesian approach via the Metropolis-Hasting and Gibbs samplers as the MCMC methods, the study aims to re-examine the impact of financial development and electricity consumption on economic growth in ASEAN+6 countries from 1980 to 2016.

8p caygaocaolon11 18-04-2021 16 2   Download

The main objective of this study is to empirically test whether there exist short run and long run causality between, residential electricity consumption (REC), industrial electricity consumption (IEC) and economic growth in Kingdom of Saudi Arabia (KSA). Time series data for this study spans from 1990 to 2019. The study adopts granger causality and co. Integration analysis to estimate a vector error correction model (VECM). Results from error correction model show that there exist long run co. integration relationship between targeted variables.

8p nguaconbaynhay10 22-02-2021 15 2   Download

Autoregressive Distributed lag (ARDL) “Bound Test” approach is employed for the investigation in this study. Both short-run and long-run coefficients are providing strong evidence of having positive significant association between electricity consumption and GDP. Our long-run results remain robust to different measurements and estimators as well. The study reveals the unidirectional causal flow running from per capita electricity consumption to per capita real GDP in the short run.

14p nguathienthan5 03-06-2020 22 0   Download

The present study utilized continuous wavelet power range, and wavelet coherence power range estimations to analyze the relationship among renewable energy consumption, non-renewable energy consumption and environmental degradation by taking about quarterly data for the time of 1997(1) to 2017(4). Moreover, the consequences of wavelet coherence affirm that ENG and CO2 emission have a bi-directional causal association with one another in the medium run and a uni-directional causal relationship where ENC is driving in a short run era.

8p partimesinhvien 13-05-2020 31 0   Download

Application of path analysis for causal modeling has been widely used in many areas of studies, such as in social science, education, biology, medical, sociology, and economics. In this study, path analysis is applied to test a relationship model among variables: Foreign direct investment (FDI), industry growth (IND), energy use (ENR), and carbon dioxide (CO2 ) emissions. Aims of this study are to know whether there exist direct effect of FDI to IND, direct effect of FDI and IND to ENR, and direct effect of IND and ENR to CO2 emissions.

7p partimesinhvien 13-05-2020 13 1   Download

While many studies have focused on estimating a relationship between pollution and health, they have largely neglected to consider that pollution exposure is endogenously determined if individuals make choices to maximize their well-being. People with high preferences for clean air may choose to live in areas with better air quality. People can respond to a wide range of readily available information on pollution levels by adjusting their exposure. Failing to appropriately account for such actions can yield misleading estimates of the causal effect of pollution on health. ...

71p can_thai 12-12-2012 37 3   Download

The results of this review expand our understanding of the relationship between health literacy and health outcomes in several ways. First, a majority of studies included in this review performed multivariate analysis, allowing us to make better estimates of the true effect of health literacy on health outcomes. Second, new studies have addressed the relationship between numeracy level and health outcomes. This allows a better understanding of what it means to be health literate.

103p quygia123 02-11-2012 45 1   Download