How to Handle Reverse Causality



Hi guys,

I have a question on the ways to deal with reverse causality.

When there are two constructs that have been argued to influence each other, how do I check the reverse causality or what model would be mostly commonly used to convince the reviewers that my design is acceptable.

For instance,
A: ethical behavior of a firm/ B: unethical behavior of a firm
direction1) B -> A
rationale: the firm offsets the negative impact of the unethical behavior on it
direction2) A -> B
rationale: perceiving that it has done something good, the firm tends to feel less guilty for doing an unethical thing.

Regardless of whether both of them make sense or not, let's just say that there have been several published papers on both of the relationship respectively. The problem is that direction1 is the main stream while my study is based on direction 2, which is a sort of critical perspective (an interesting but minority stream)

Q. I may need to show the direction2 is real clearly in my paper. What kind of statistical model should I focus on? is there any model that is known to help deal with reverse causality?

Q. Isn't it possible that both directions are correct in real world?