Everyone knows that correlation doesn’t equal causation, but somehow people seem to forget. Endogeneity is a word that can help you remember. Something is endogenous when you don’t know whether it’s a cause or an effect (or both). For example, lots of people note that people who go to college tend to make more money. But how much of this is because college boosts earning power, and how much is because smarter, harder-working, better-connected people tend to go to college in the first place? It’s endogenous. The media is full of stories about how which kind of people stay married, or what diet is associated with better health. Whenever you see these stories, you should ask “What about endogeneity?”
https://www.bloomberg.com/view/articles/2017-01-05/5-economics-terms-we-all-should-use
If things are getting hotter and carbon levels in the atmosphere are rising, does that mean carbon is causing the temperature changes? Or are warmer oceans off gassing more carbon dioxide? Hmmm....
https://www.bloomberg.com/view/articles/2017-01-05/5-economics-terms-we-all-should-use
If things are getting hotter and carbon levels in the atmosphere are rising, does that mean carbon is causing the temperature changes? Or are warmer oceans off gassing more carbon dioxide? Hmmm....
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