Skip to main content Accessibility help
×
Hostname: page-component-8448b6f56d-dnltx Total loading time: 0 Render date: 2024-04-20T04:09:36.113Z Has data issue: false hasContentIssue false

6 - Formal Theory and Causality

Published online by Cambridge University Press:  05 June 2012

Rebecca B. Morton
Affiliation:
New York University
Kenneth C. Williams
Affiliation:
Michigan State University
Get access

Summary

What Is a Formal Model?

We turn in this chapter to the Formal Theory Approach (FTA) to causality. The key difference between FTA and the Rubin Causal Model (RCM) is that a formal model serves as the basis for the causal relationships studied. To understand what we mean by FTA, it is useful to define what we mean by a formal model. We define a formal model as a set of precise abstract assumptions or axioms about the data generating process (DGP) presented in symbolic terms that are solved to derive predictions about that process. These predictions are of two types: point predictions and relationship predictions. Point predictions are precise predictions about the values of the variables in the model when the model is in equilibrium, whereas relationship predictions are predictions about how we may expect two variables in the model to be related. Defining what is meant by whether the model is in equilibrium can vary with the model as well; different formal models rely on different equilibrium concepts, which is something that we investigate later in Section 6.5.4. Some of these relationship predictions may be predicted to be “causal” in that changes in one variable “cause” changes in the other variable.

Definition 6.1 (FormalModel): A set of precise abstract assumptions or axioms about the DGP presented in symbolic terms that are solved to derive predictions about the DGP.

Definition 6.2 (Point Prediction of a Formal Model): A precise prediction from a formal model about the values of the variables in the model when the model is in equilibrium.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×