This paper examines Patrick Suppes’ probabilistic theory of causality understood as a theory of causal inference, and draws some lessons for empirical economics and contemporary debates in the foundations of econometrics. It argues that a standard method of empirical economics, multiple regression, is inadequate for most but the simplest applications, that the Bayes’ nets approach, which can be understood as a generalisation of Suppes’ theory, constitutes a considerable improvement but is still subject to important limitations, and that the currently fashionable (...) ‘design-based approach’ suffers from the same flaws Suppes anticipated a long time ago. It then sketches an alternative in response, one that differs drastically from the formalisms Suppes endorsed but is consistent with his pragmatic general take on science. (shrink)

We further develop the mathematical theory of causal interventions, extending earlier results of Korb, Twardy, Handfield, & Oppy, (2005) and Spirtes, Glymour, Scheines (2000). Some of the skepticism surrounding causal discovery has concerned the fact that using only observational data can radically underdetermine the best explanatory causal model, with the true causal model appearing inferior to a simpler, faithful model (cf. Cartwright, (2001). Our results show that experimental data, together with some plausible assumptions, can reduce the space of viable explanatory (...) causal models to one. (shrink)