What do we mean when we say that correlation does not imply causality? What are some of the ways in which an empirical analyst attempts to disentangle the two?
Answer to relevant QuestionsA researcher conducted a cross-sectional analysis of children and found that average test performance of children with divorced parents was lower than average test performance of children of intact families. This researcher ...A researcher wants to investigate the effects of education spending on housing prices, but she only has cross-sectional data. When she performs her regression analysis, she controls for average January and July temperatures. ...Why does the Congressional Budget Office (CBO) construct a cyclically adjusted budget deficit for the purposes of monitoring federal income and outlays? How do you think population growth affects the degree of “generational balance” in government finance? In two-car automobile accidents, passengers in the larger vehicle are significantly more likely to survive than are passengers in the smaller vehicle. In fact, death probabilities are decreasing in the size of the vehicle ...
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