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Reverse causality - as the pairing of the words implies - is cause and effect in reverse. That is to say the effectsprecede the cause. The problem is when the assumption is A causes B when the truth may actually be that B causes A. Which came first...the chicken or the egg: Did a chicken cause the egg to come into existence or was it the egg that caused the chicken to come into existence?

For example, some economists claim that financial development helps growth, but others argue that economic growth itself causes financial development.

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Q: What is the reverse causality problem in determining cause and effect?
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