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Principles for Combining Descriptive and Model-Based Analysis in Applied Microeconomics Research

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  • Neale Mahoney

Abstract

In this article, I offer guidance on how to combine descriptive and model-based empirical analysis within a paper. Drawing on examples from three recently published applied microeconomics papers, I argue that it is important to create a tight link between the descriptive analysis and the bottom-line deliverable of the model-based analysis, and I try to distill some lessons or principles for doing so. I also offer some thoughts on when a paper should start with descriptive analysis and then proceed to model-based analysis and when alternative structures may be desirable.

Suggested Citation

  • Neale Mahoney, 2022. "Principles for Combining Descriptive and Model-Based Analysis in Applied Microeconomics Research," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 211-222, Summer.
    • Handle: RePEc:aea:jecper:v:36:y:2022:i:3:p:211-22
    DOI: 10.1257/jep.36.3.211
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    References listed on IDEAS

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    1. Liran Einav & Amy Finkelstein & Paul Schrimpf, 2015. "The Response of Drug Expenditure to Nonlinear Contract Design: Evidence from Medicare Part D," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 841-899.
    2. Sumit Agarwal & Souphala Chomsisengphet & Neale Mahoney & Johannes Stroebel, 2018. "Do Banks Pass through Credit Expansions to Consumers Who want to Borrow?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 129-190.
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    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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