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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...
Persistent link: https://www.econbiz.de/10012462856
Formal analysis plans limit false discoveries by registering and multiplicity adjusting statistical tests. As each registered test reduces power on other tests, researchers prune hypotheses based on prior knowledge, often by combining related indicators into evenly-weighted indices. We propose...
Persistent link: https://www.econbiz.de/10013172142
The analysis of historical natural experiments has profoundly impacted economics research across fields. We trace the development and increasing application of the methodology, both from the perspective of economic historians and from the perspective of economists in other subdisciplines. We...
Persistent link: https://www.econbiz.de/10012479278
How robust are experimental results to changes in design? And can researchers anticipate which changes matter most? We consider a specific context, a real-effort task with multiple behavioral treatments, and examine the stability along six dimensions: (i) pure replication; (ii) demographics;...
Persistent link: https://www.econbiz.de/10012479807
How should researchers design panel data experiments? We analytically derive the variance of panel estimators, informing power calculations in panel data settings. We generalize Frison and Pocock (1992) to fully arbitrary error structures, thereby extending McKenzie (2012) to allow for...
Persistent link: https://www.econbiz.de/10012480194
This paper examines potential tradeoffs between research methods in answering important questions versus providing more cleanly identified estimates on problems that are potentially of lesser interest. The strengths and limitations of experimental and quasi-experimental methods are discussed and...
Persistent link: https://www.econbiz.de/10012480971
While empirical economics has made important strides over the past half century, there is a recent attack that threatens the foundations of the empirical approach in economics: external validity. Certain dogmatic arguments are not new, yet in some circles the generalizability question is beyond...
Persistent link: https://www.econbiz.de/10012481390
This chapter surveys the contributions of laboratory experiments to labor economics. We begin with a discussion of methodological issues: why (and when) is a lab experiment the best approach; how do laboratory experiments compare to field experiments; and what are the main design issues? We then...
Persistent link: https://www.econbiz.de/10012462739
Experimental economics represents a strong growth industry. In the past several decades the method has expanded beyond intellectual curiosity, now meriting consideration alongside the other more traditional empirical approaches used in economics. Accompanying this growth is an influx of new...
Persistent link: https://www.econbiz.de/10012462951
Markets sometimes unravel, with offers becoming inefficiently early. Often this is attributed to competition arising from an imbalance of demand and supply, typically excess demand for workers. However this presents a puzzle, since unraveling can only occur when firms are willing to make early...
Persistent link: https://www.econbiz.de/10012463643