Sharpening the Effectiveness of Natural Experiments as an Analytical Tool
The importance of using natural experiments in economic research has long been recognized. Yet, it is only in recent years that natural experiments have become an integral part of the economist's analytical toolbox, thanks to the efforts of Meyer, Card, Peters, Krueger, Gruber, and others. This use promises to shed new light on a variety of public policy issues and has already caused a major challenge to some tightly held beliefs in economics, most vividly illustrated by the finding of a positive effect of a minimum wage increase on the employment of low-wage workers. Although currently in vogue in economic research, the analysis of natural experiments could be substantially strengthened. This paper discusses several methodological approaches that would increase the precision and reliability of the results stemming from the analysis of natural experiments. A theme underlying all of these proposals is how best to measure the effect of a treatment on a variable, as opposed to explaining a level or change in a variable.
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Herbert L. Lyon & Julian L. Simon, 1968. "Price Elasticity of the Demand for Cigarettes in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(4), pages 888-895.
- Jennifer Hunt, 1992. "The Impact of the 1962 Repatriates from Algeria on the French Labor Market," ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
- Nakamura, Alice Orcutt & Nakamura, Masao & Duleep, Harriet Orcutt, 1990. "Alternative approaches to model choice," Journal of Economic Behavior & Organization, Elsevier, vol. 14(1), pages 97-125, September.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6682. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.