Prediction,diagnosis, and causal thinking in forecasting

While forecasting involves forward/predictive thinking, it depends crucially on prior diagnosis for suggesting a model of the phenomenon, for defining‘relevant’variables, and for evaluating forecast accuracy via the model. The nature of diagnostic thinking is examined with respect to these activities. We first consider the difficulties of evaluating forecast accuracy without a causal model of what generates outcomes. We then discuss the development of models by considering how attention is directed to variables via analogy and metaphor as well as by what is unusual or abnormal. The causal relevance of variables is then assessed by reference to probabilistic signs called‘cues to causality’. These are: temporal order, constant conjunction, contiguity in time and space, number of alternative explanations, similarity, predictive validity, and robustness. The probabilistic nature of the cues is emphasized by discussing the concept of spurious correlation and how causation does not necessarily imply correlation. Implications for improving forecasting are considered with respect to the above issues.     

How to tell causes from effects: Kant’s causal theory of time and modern approaches

I attempt a reconstruction of Kant’s version of the causal theory of time that makes it appear coherent. Two problems are at issue. The first concerns Kant’s reference to reciprocal causal influence for characterizing simultaneity. This approach is criticized by pointing out that Kant’s procedure involves simultaneous counterdirected processes—which seems to run into circularity. The problem can be defused by drawing on instantaneous processes such as the propagation of gravitation in Newtonian mechanics. Another charge of circularity against Kant’s causal theory was leveled by Schopenhauer. His objection was that Kant’s approach is invalidated by the failure to deliver non-temporal criteria for distinguishing between causes and effects. I try to show that the modern causal account has made important progress toward a successful resolution of this difficulty. The fork asymmetry, as based on Reichenbach’s principle of the common cause, provides a means for the distinction between cause and effect that is not based on temporal order (if some preconditions are realized).