EconPapers    
Economics at your fingertips  
 

The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics

Joshua Angrist () and Jorn-Steffen Pischke

No 4800, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This essay reviews progress in empirical economics since Leamer's (1983) critique. Leamer highlighted the benefits of sensitivity analysis, a procedure in which researchers show how their results change with changes in specification or functional form. Sensitivity analysis has had a salutary but not a revolutionary effect on econometric practice. As we see it, the credibility revolution in empirical work can be traced to the rise of a design-based approach that emphasizes the identification of causal effects. Design-based studies typically feature either real or natural experiments and are distinguished by their prima facie credibility and by the attention investigators devote to making the case for a causal interpretation of the findings their designs generate. Design-based studies are most often found in the microeconomic fields of Development, Education, Environment, Labor, Health, and Public Finance, but are still rare in Industrial Organization and Macroeconomics. We explain why IO and Macro would do well to embrace a design-based approach. Finally, we respond to the charge that the design-based revolution has overreached.

Keywords: research design; natural experiments; structural models; quasi-experiments (search for similar items in EconPapers)
JEL-codes: C01 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-ecm and nep-exp
Date: 2010-03
References: Add references at CitEc
Citations: View citations in EconPapers (258) Track citations by RSS feed

Published in: Journal of Economic Perspectives, 2010, 24 (2), 3-30

Downloads: (external link)
http://ftp.iza.org/dp4800.pdf (application/pdf)

Related works:
Journal Article: The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics (2010) Downloads
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design is taking the Con out of Econometrics (2010) Downloads
Working Paper: The credibility revolution in empirical economics: how better research design is taking the con out of econometrics (2010) Downloads
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics (2010) Downloads
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp4800

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-09-16
Handle: RePEc:iza:izadps:dp4800