Economics and Measurement: New measures to model decision making / Ingvild Almås, Orazio Attanasio, Pamela Jervis.

Format:

Book

Author/Creator:

Almås, Ingvild.

Contributor:

National Bureau of Economic Research.

Attanasio, Orazio.

Jervis, Pamela.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30839.

NBER working paper series no. w30839

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

Most empirical work in economics has considered only a narrow set of measures as meaningful and useful to characterize individual behavior, a restriction justified by the difficulties in collecting a wider set. However, this approach often forces the use of strong assumptions to estimate the parameters that inform individual behavior and identify causal links. In this paper, we argue that a more flexible and broader approach to measurement could be extremely useful and allow the estimation of richer and more realistic models that rest on weaker identifying assumptions. We argue that the design of measurement tools should interact with, and depend on, the models economists use. Measurement is not a substitute for rigorous theory, it is an important complement to it, and should be developed in parallel to it. We illustrate these arguments with a model of parental behavior estimated on pilot data that combines conventional measures with novel ones.

Notes:

Print version record

January 2023.