Showing posts with label Correlation. Show all posts
Showing posts with label Correlation. Show all posts

Thursday, April 23, 2009

Rainfall and GDP growth

From the economist's dailychart. Variability in rainfall explains why economies dependent on farming have more volatile gdp's. As the paper notes it seems however that some changes in GDP precede the ones in rainfalls. An other example of Cum Hoc Ergo Propter Hoc?

Tuesday, March 10, 2009

Cum Hoc Ergo Propter Hoc


Wikipedia explains the issue. And Prof Greg Mankiw from Harvard sums it up.