Causal Inference by Independent Component Analysis: Theory and Applications*

Moneta, Alessio; Entner, Doris; Hoyer, Patrik O.; Coad, Alex

doi:10.1111/j.1468-0084.2012.00710.x

Cited by 164 publications

(148 citation statements)

References 43 publications

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“…This is done using the algorithm in Moneta et al (2013), which applies an Independent Component Analysis (ICA) to recover the latent components that are fully statistically independent, before they are arranged in a causal ordering that best fits the data. We begin by estimating a reduced-form VAR to obtain the residuals ̂ then apply ICA to decompose the residuals into statistically independent shocks ̂ Then, the rows are permuted to obtain an estimate of a lower-triangular matrix with zeroes along the diagonal.…”

Section: Methodsmentioning

confidence: 99%

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Causal Linkages between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach

Coad

Binder

2014

SSRN Journal

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Section: Methodsmentioning

confidence: 99%

“…We begin by estimating a reduced-form VAR to obtain the residuals ̂ then apply ICA to decompose the residuals into statistically independent shocks ̂ Then, the rows are permuted to obtain an estimate of a lower-triangular matrix with zeroes along the diagonal. Further details are in Moneta et al (2013). …”

Section: Methodsmentioning

confidence: 99%

Causal Linkages between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach

Coad

Binder

2014

SSRN Journal

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“…The developments to which we refer, brought to the attention of the economic research community by Moneta et al (2013), are based upon a deeper investigation of what the assumption of independence of the exogenous shocks (Et in Equation 1) entails.…”

Section: Methodsmentioning

confidence: 99%

“…The assumptions of independence and of non-Gaussianity of the shocks are not sufficient to identify the structural form (1); we need the third assumption that there is no contemporaneous feedback among the variables, which Moneta et al (2013) refer to as the "acyclicality" assump-tion. It must be interpreted as follows: if, in our model, an exogenous shock to one variable is immediately able (within one time-unit, that is within one year in our context) to affect a second variable, then it is not possible that an exogenous shock to the second variable is immediately able to affect the first variable.…”

Section: Methodsmentioning

confidence: 99%

Causal relations between knowledge-intensive business services and regional employment growth

et al. 2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:This paper studies the causal relations between regional employment growth in Knowledge-Intensive Business Services (KIBS) and overall regional employment growth using German labour-market data for the period 1999-2012. Adopting a recently developed technique, we are able to estimate a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. One main finding holds that although regional growth has a negative short-term effect on KIBS, KIBS growth has a long-term positive effect on the whole regional economy. This result confirms the claim that KIBS can play a key role in regional policies. Distinguishing between financial and nonfinancial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector.

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“…Besides, the variables imports, dependency ratio and population density were dropped after tests of stationary proved them to be of different order of integration. Moreover, the statistical performance of the estimates from VAR and VEC models has been well studied and well established for models with a few number of variables (Moneta et al, 2011).…”

Section: Model Specificationmentioning

confidence: 99%

Demographic changes and economic development: Application of the vector error correction model (VECM) to the case of Ethiopia

Wako¹

2012

J. Econ. Int. Finance

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Ethiopia is one of the countries with high fertility, rapidly growing and largely young population. At the same time, it is among countries with weak and poorly focused population policy. In light of this, t his study intended to assess the causation between demographic factors and economic development in Ethiopia. To this end, it applied vector-error-correction model (VECM) to data on economic, demographic and other variables obtained from secondary sources, accompanied by descriptive analysis of the relationship of population with HDI, agricultural landholdings and forestland. VECM results indicated robust and negative long run relationship between per capita income and population growth and a positive one between the former and growth of workers -with bidirectional causality in both cases. That is, rises in per capita income reduce the growth of (dependent) population and enhance that of workers, and vice versa. Conversely, slower growth of population or faster growth of workers raises per capita income. Short run relationships turned out to be weak and non-robust to alternative model specifications. The descriptive analysis signified inverse associations of population growth with landholding, forest coverage and HDI score. These findings point to a need for meaningful efforts to incorporate population matters into the policy arena.

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Causal Inference by Independent Component Analysis: Theory and Applications*

Cited by 164 publications

References 43 publications

Causal Linkages between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach

Causal Linkages between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach

Causal relations between knowledge-intensive business services and regional employment growth

Demographic changes and economic development: Application of the vector error correction model (VECM) to the case of Ethiopia

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