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The Role of Theory in Field Experiments (2011)
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| Venue: | JOURNAL OF ECONOMIC PERSPECTIVES—VOLUME 25, NUMBER 3—SUMMER 2011—PAGES 39–62 |
| Citations: | 15 - 2 self |
BibTeX
@MISC{Card11therole,
author = {David Card and Stefano DellaVigna and Ulrike Malmendier},
title = {The Role of Theory in Field Experiments},
year = {2011}
}
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Abstract
When hen it comes to the role of theory in their research, empirical micro-economists are torn. On the one hand, we devote a large fraction of our graduate instruction to models of consumer behavior and firm decision making, and to the interactions that determine market equilibrium. On the other hand, it is not always obvious how these theories are relevant to empirical research. Outside the academy, policymakers and business leaders often demand “basic facts” and simplified policy guidance with little or no concern for theoretical nuances. How then do empirical economists negotiate between theory and “facts”? In this paper, we focus on the role of theory in the rapidly growing area of field experi-ments. We take an empirical approach and quantify the role of theoretical modeling in all published field experiments in five top economics journals from 1975 to 2010. We propose a new classification of experimental studies that captures the extent to which the experimental design and analysis is linked to economic theory. Specifi-cally, we distinguish between four classes of studies: Descriptive studies that lack any explicit model; Single Model studies that test a single model-based hypothesis; Competing Models studies that test competing model-based hypotheses; and Parameter Estimation studies that estimate structural parameters in a completely specified model. Applying the same classification to laboratory experiments published over the same period we conclude that theory has played a more central role in the
Keyphrases
field experiment parameter estimation study new classification basic fact single model-based hypothesis central role laboratory experiment theoretical modeling top economics journal structural parameter market equilibrium empirical research theoretical nuance large fraction simplified policy guidance competing model study economic theory explicit model descriptive study firm decision making empirical approach experimental design consumer behavior graduate instruction model-based hypothesis experimental study empirical economist empirical micro-economists field experi-ments single model study business leader
