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

Joshua Angrist and Jorn-Steffen Pischke

No 15794, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: C20 C30 C50 C51 D00 (search for similar items in EconPapers)
Date: 2010-03
Note: CH ED EH IO LS ME PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (707)

Published as Joshua D. Angrist & Jorn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 3-30, Spring.

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Related works:
Journal Article: The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics (2010)
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design is taking the Con out of Econometrics (2010)
Working Paper: The credibility revolution in empirical economics: how better research design is taking the con out of econometrics (2010)
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics (2010)
Working Paper: The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics (2010)
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