Sophisticated statistical techniques like two-stage least squares (instrumental variables) are designed to correct for reverse causation and confounding, but they are often applied to data that is simply not good enough for the task, so we can never control for all factors and may falsely attribute correlations to an unobserved variable.

causalpending

Speaker

Russ Roberts

Evidence Quote

the statistical technique for correcting for reverse causation is called two stage least squares or instrumental variables... they're often being used with data that are simply not up to the task

Source

Ian Ayres on Super Crunchers and the Power of Data 10/22/2007EconTalk
Created: 6/17/2026, 10:31:42 AM

My Notes

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