Saturday, December 27, 2014

Directed Acyclic Graph of "the deficit"


I've used the Dagitty software to produce a causal relationship diagram in the form of a Directed Acylic Graph presented below to illustrate the causation related to "the deficit".


















I've thought about this a bit and can come up with no other causal outcome that results from the computation of "the deficit" other than "Rantings of Morons" outcome that I've diagrammed here.

If any of our readers can come up with another causal outcome, I would appreciate that they would provide this in the comments and I'll try to update this diagram if indeed "the deficit" can be shown to be a causal ancestor of the reader's proposed resultant outcome.

So short of this, we should never be using the phrase "the deficit (level) is causing (insert economic outcome here)....." as the only thing "the deficit" causes is the outcome identified above.

At least at this point I can identify no other causal outcome that results from the computation of "the deficit".


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