Where the data come from? what is the causal effect does the paper try to get at?

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

A few points to discuss: 

Research question 

Research design 

Idetification strategy 

Interpret the results

 How to read an empirical paper:

Basically, we look for four main things

Research question

outcome, policy variable(s) (treatment variable(s)) waht is the causal effect does the paper try to get at?

Main results

Look for table or figure with the main findings – interpret in economic term

Data source

Where the data come from?

Identification strategy

How does the paper get the results/findings

First, skim the paper to find out there four main things

My way to read the paper (probably many of empirical people do the same):

First, I look for the main equation to identify outcome and the main policy variables.

This is to identify the research question and the causal relation between outcome and policy variables.

Then, I look for identification strategy – to determine whether I can believe the findings.

Look for the source of exogenous variation (of policy variable)

IV, natural experiment, RD design, .....

Some knowledge on institutional details to see whether the exogeneity is valid.

Then, look for the main findings from the Tables

Tables and figures

Robustness check

Rule out Alternative explanation Falsification test or Placebo test

Skills we focus

Learn about empirical paper’s structure

Pin down identification strategy in the paper

Evaluate the identification strategy – is the estimated effect causal? Trace the data sources if possible

Interpret the results in the table

Discuss the results by relating to previous research

My experience

Most research questions have already studied by someone else

For a policy evaluation, the first study may investigate the effect of a policy on outcome

I usually investigate why this effect is realized by estimating heterogeneous effect of the policy – typically done with subsample estimations or an interaction-term model estimation

I also look at the effect to those recipients of the policy but the ones next to them (called indirect effect or spillover effect)

Attachments:

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