Correlation vs Causation
Noah and Russ discuss the dangers of mistaking correlation for causation, using examples from Richard Feynman's story and the concept of codetermination in Germany. They explore the mixed research on the relationship between codetermination and income inequality, as well as the potential impact on wages and profits. The conversation highlights the complexity of studying these topics and the need for careful analysis.In this clip
From this podcast
EconTalk
Noah Smith on Worker Compensation, Co-determination, and Market Power
Related Questions
Can you give examples of the concept "Correlation is not causation"?
You mentioned correlations in the studies discussed in the episode William Easterly on Growth, Poverty, and Aid and the clip Poverty Traps and Causation. Is there a possibility of other causalities?
Can low wages have positive effects?