Is it healthy to assume correlation means causation?

Association of obesity trend in the US with vehicles miles travelled (left) and with Justin Wolfer's age (right)

The link between the physical environment and health outcomes like obesity is fraught. The Victorian Legislative Council’s Environment and Planning References Committee should bear this in mind as it goes about its new inquiry into the contribution of environmental design to public health.

The Committee might want to start with the first chart in the accompanying exhibit, which comes from a recent issue of The Economist and purports to show that obesity has increased in the US in line with the increase in miles driven over the last 15 years. The chart is based on work done by researchers at the University of Illinois who found “a striking correlation between these two variables – but with a large time lag……This near-perfect correlation (99.6%) permits predictions about obesity rates”.

Expatriate Australian economist and Wharton business school Assoc Professor, Justin Wolfers, points out the folly of this claim. It is, in his words, a “nonsensical correlation”:

When you see a variable that follows a simple trend, almost any other trending variable will fit it: miles driven, my age, the Canadian population, total deaths, food prices, cumulative rainfall, whatever.

To demonstrate his point, Professor Wolfers prepared the second chart showing an even better correlation between changes in obesity over the period and changes in his age – he didn’t even need to resort to a time lag to get such a good fit! He acknowledges The Economist offered the customary caveat that correlation does not equal causation but this chart, he says, is so completely unconvincing as to warrant a different warning: “Not persuasive enough that you should bother reading this article” (in the interests of balance, here’s The Economist’s subsequent response to Professor Wolfer’s charge).

This exchange highlights a problem with much of the research that purports to show the physical environment — particularly density and/or public transport access —  has a strong effect on health-related variables like obesity. There’s plenty of evidence of correlation but not much evidence of causation. There’s no doubt obesity is inversely related to both density and access to public transport, but if it turns out these aren’t the underlying drivers of obesity then the economic cost of misdirected policies could potentially be significant.

There are special reasons why it’s hard to establish causation when dealing with real life infrastructure projects and transport/land use programs. These British epidemiologists reviewed 77 international studies examining the effectiveness of policy interventions to reduce car use. They concluded the evidence base is weak, finding only 12 were methodologically strong – and they mainly involved relatively small-scale initiatives like providing better information about travel options or direct financial incentives to reduce driving (incidentally, only half of those 12 actually worked i.e. reduced car use). Read the rest of this entry »

Newsflash: economist’s prediction is right!

Writing in the NY Times Freakonomics blog last week, Australian economist Justin Wolfers correctly predicted the key winners at the Oscars (getting any prediction right must be a major accomplishment for an economist!). Here he also explains the new voting system at the Oscars, which is the same preferential system used in Australian politics. The article is An Economist’s View of the New Oscar Voting.