From Description to Causation Department of Government London - - PowerPoint PPT Presentation

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From Description to Causation Department of Government London - - PowerPoint PPT Presentation

Correlation vs. Causation Over-Time Changes Getting Systematic about Causality From Description to Causation Department of Government London School of Economics and Political Science Correlation vs. Causation Over-Time Changes Getting


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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

From Description to Causation

Department of Government London School of Economics and Political Science

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

1 Correlation vs. Causation 2 Over-Time Changes 3 Getting Systematic about Causality

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

What makes something a cause?

Write for 1 minute.

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Correlation

Correlation is the non-independence of two variables for a set of observations

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Correlation

Synonyms: correlation, covariation, relationship, association Any correlation is potentially causal

X might cause Y Y might cause X X and Y might be caused by Z X and Y might cause Z There may be no causal relationship

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Flashback!

Two Categories of Inference:

1 Descriptive Inference

What are the facts?

2 Causal Inference

Why does something occur?

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Correlation is Causation?

The mind tends to interpret correlations and patterns as evidence

  • f causal relationships!

But this is rarely correct!

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Source: Wikimedia Commons

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Source: Wikimedia Commons

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Source: The Economist, 8 July 2016

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Source: The Economist, 8 July 2016

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Source: Randal Olson

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Source: Ministry of Justice, “Statistics on Race and the Criminal Justice System 2010”

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Source: StackExchange

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Source: TylerVigen.com

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Naive Causal Inference

Correlations are not necessarily causal Our mind thinks they are because humans are not very good at the kind of causal inference problems that social scientists care about Instead, we’re good at understanding physical causality

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Physical causality

Action and reaction

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Physical causality

Action and reaction Example:

Picture a ball resting on top of a hill What happens if I push the ball?

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Correlation vs. Causation Over-Time Changes Getting Systematic about Causality

Physical causality

Action and reaction Example:

Picture a ball resting on top of a hill What happens if I push the ball?

Features:

Observable Single-case Deterministic Monocausal

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Pre-Post Change Heuristic

Our intuition about causation relies too heavily on simple comparisons of pre-post change in outcomes before and after something happens

No change: no causation Increase in outcome: positive effect Decrease in outcome: negative effect

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Pre-Post Change Heuristic

Our intuition about causation relies too heavily on simple comparisons of pre-post change in outcomes before and after something happens

No change: no causation Increase in outcome: positive effect Decrease in outcome: negative effect

Why is this flawed?

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Threats to Validity

Campbell and Ross talk about six “threats to validity” (i.e., threats to causal inference) related to time-series analysis

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Flaws in causal inference from pre-post comparisons

1 Maturation or trends 2 Regression to the mean 3 Selection 4 Simultaneous historical changes 5 Instrumentation changes 6 Monitoring changes behaviour

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Maturation or trends

Is a shift in an outcome before and after a policy change the impact of the policy

  • r a small part of a longer time trend?

Case Study: Connecticut crackdown on speeding (1955)

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Regression to the mean

Is a shift in an outcome before and after a policy change the impact of the policy

  • r a function of statistical variation?

Case Study: Connecticut crackdown on speeding (1955)

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Selection

Is a shift in an outcome before and after a policy the impact of the policy or the result of the policy being implemented when outcomes are extreme? Case Study: Connecticut crackdown on speeding (1955)

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Simultaneous changes

Is the shift in an outcome before and after a policy the impact of the policy or the result of a simultaneous historical shift? Case Study: US Great Depression Policy

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Instrumentation changes

Is the shift in an outcome before and after a policy the impact of the policy or a change in how the outcome is measured? Case Study: Age-adjusted mortality rates

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Monitoring changes behaviour

Is the shift in an outcome before and after a policy the impact of the policy or a change in response to measuring the

  • utcome per se?

Case Study: Educational testing

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The more any quantitative social indicator is used for social decision-making, the more subject it will be to corruption pressures and the more apt it will be to distort and corrupt the social processes it is intended to monitor. – Donald T. Campbell (1979)

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Flaws in causal inference from pre-post comparisons

1 Maturation or trends 2 Regression to the mean 3 Selection 4 Simultaneous historical changes 5 Instrumentation changes 6 Monitoring changes behaviour

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Directed Acyclic Graphs

Causal graphs (DAGs) provide a visual representation of (possible) causal relationships

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Directed Acyclic Graphs

Causal graphs (DAGs) provide a visual representation of (possible) causal relationships Causality flows between variables, which are represented as “nodes” Variables are causally linked by arrows Causality only flows forward in time

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Directed Acyclic Graphs

Causal graphs (DAGs) provide a visual representation of (possible) causal relationships Causality flows between variables, which are represented as “nodes” Variables are causally linked by arrows Causality only flows forward in time Nodes opening a “backdoor path” from X → Y are confounds “Selection bias” or “Confounding”

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Smoking Cancer

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Smoking Cancer Age Environment Genetic Predisposition Parental Smoking

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Smoking Cancer Age Environment Genetic Predisposition Parental Smoking

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Smoking Cancer Age Environment Genetic Predisposition Parental Smoking

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Causal Inference

Causal inference (typically) involves gathering data in a systematic fashion in

  • rder to assess the size and form of

correlation between nodes X and Y in such a way that there are no backdoor paths between X and Y by controlling for (i.e., conditioning on, holding constant) any confounding variables, Z.

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