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INFO371 Lab 1: Causal explanations
Your name:
January 7, 2024
Introduction
Recall the three possible causal explanations: X → Y; Y → X; and Z → X, Y.
This lab asks you to discuss some empirical regularities one may find in data, provide explanations
to these using all three causal models, and discuss the plausibility of the results. You should also discuss
the potential data you may need to establish the causal effect.
Please submit your completed lab by the deadline. Normally you should submit two files a) your
code (rmarkdown, notebooks or whatever you use) and b) the lab in a final output form (html or pdf).
However, as this one does not involve any coding, a single html/pdf is just fine.
Working together is fun and useful but you have to submit your own work. Discussing the solutions
and problems with your instructors and classmates is all right but do not copy-paste their solution! First
understand their explanations, and then create your own.
Please list all your collaborators in your file:
1.
2. …
1 Ice cream versus sunglasses
Consider the following artificial data about sales of sunglasses (X) and icecream sales (Y):
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Daily sales of ice cream ($)
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0
0
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Daily sales of sunglasses ($)
1. Do you think this image depicts realistic data?
2. Consider all three causal explanations. What would each of these tell in terms of causality between
sales of sunglasses and ice cream? Try to find as plausible an explanation for each of the model as
you can.
3. Which of these three mechanisms do you consider (the most) plausible? Explain why do you think
the other explanation(s) are not plausible.
2 Lemons import and traffic accidents
Consider the macroeconomic data on the following image. It depicts 5 observations of traffic fatality rate,
and lemon imports from Mexico in US.
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1. As in the previous question, consider the three causal models. What would each of the three causal
models tell in terms of causality between traffic deaths and lemon imports? Try to find as plausible
an explanation for each of the three models as you can.
2. Which of these three mechanisms do you consider (the most) plausible? Explain why do you think
the other explanation(s) are not plausible.
3 Education and icome
Consider this artificial data about education and income:
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Answer the same questions as in the last example, considering this time the relationship between
education and income.
References
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