Potential Outcomes Framework
Causality and Causal InferenceUnderstanding causation has long been one of the central questions in economics. But it is important to understand that causality and causal inference are two different things. Causality defines the relationship between a cause and an effect. Simply, Causality is understanding if A causes B and how much does A cause B. It is a very simple question but one very difficult to answer. The concept of causality is central concept in science, philosophy, economics, and als…