Causal Inference and Robustness Indices

When one reports a regression from an observational study, there is always the concern: "But have you controlled for xxx?" In this article, I index the impact of a confounding variable in terms of the product of two correlations (correlation between the confounding variable and the predictor of interest X correlation between the confounding variable and the outcome -- see figure below). This product appears in both the estimate of a regression coefficient and its standard error. Thus it can be used to quantify the impact necessary to alter a statistical inference. In the article I develop the index for the bivariate and multivariate contexts, compare it to other statistics, apply to an example, describe a reference distribution, and then interpret in the context of recent concerns about causal and statistical inferences.

 see also

Pan, W., and Frank, K.A. 2004. "An Approximation to the Distribution of the Product of Two Dependent Correlation Coefficients." Journal of Statistical Computation and Simulation, 74, 419-443

Pan, W., and Frank, K.A., 2004. "A probability index of the robustness of a causal inference," Journal of Educational and Behavioral Statistics, 28, 315-337.

Frisco, Michelle, Muller, C. and Frank, K.A. 2007. Using propensity scores to study changing family structure and academic achievement.  Journal of Marriage and FamilyVol 69(3): 721–741

Concerns about Causality in the Network Influence Model (ppt)