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Which of the following is NOT a reason we need to use natural experiments to understand fundamental ...

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Which of the following is NOT a reason we need to use natural experiments to understand fundamental ...

Which of the following is NOT a reason we need to use natural experiments to understand fundamental causes of prosperity?

▸ We cannot just look at correlations between variation in the fundamental causes and prosperity today because correlation does mean causation.

▸ It is difficult to exactly know what would have happened to a country if a fundamental cause like geography, culture, or institutions were different.

▸ Theory tells us nothing about what potential fundamental causes might be.

▸ It would be impossible and unethical to run a true experiment over a long period of time to test the fundamental causes.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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mmorris1537

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jdot Author

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Thanks for your help!!

Transonic

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Smart ... Thanks!

klyn

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Thank you, thank you, thank you!

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