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Curriculum How Economists Know Things: Evidence & Experiments

How Economists Know Things: Evidence & Experiments

The toolkit economists use to separate cause from coincidence - randomised trials, natural experiments, cutoffs, forecasts, big data - and the pitfalls that come with each.

  1. Theory and Evidence: How Economics Tests Ideas How economists move from theories about behaviour to evidence about the real world, and why finding causes is the hardest part. 📄 Read-aloud
  2. Randomised Controlled Trials in Economics How economists borrowed the randomised trial from medicine to test policies, and what the 2019 Nobel prize-winning research on poverty found. 📄 Read-aloud
  3. Natural Experiments How economists find situations where chance or policy quirks create something like a randomised experiment, and the famous studies that used them. 📄 Read-aloud
  4. Difference-in-Differences, Explained in Words A widely used method that compares changes over time between an affected group and an unaffected one, and the assumption it depends on. 📄 Read-aloud
  5. Regression Discontinuity: Learning From Cutoffs How rules with sharp cutoffs, such as test score thresholds and class size limits, let economists compare people just above and just below the line. 📄 Read-aloud
  6. Instrumental Variables in Plain Language A method that uses an outside factor to isolate the part of a variation that behaves like an experiment, illustrated by the Vietnam draft lottery. 📄 Read-aloud
  7. How Economists Know Things: Checkpoint 1 Quick checkpoint - five questions on counterfactuals, randomised trials, natural experiments and other research designs. 5 questions
  8. Laboratory Experiments in Economics How economists test theories with controlled experiments in the lab, what Vernon Smith's market experiments showed, and the debate over how far lab results apply. 📄 Read-aloud
  9. Why Economic Forecasts Often Miss Why predicting recessions and growth is so hard, how forecasts should be read, and what economists learned after 2008. 📄 Read-aloud
  10. Replication and Publication Bias Why some published findings fail to hold up when repeated, how the bias toward publishing striking results distorts evidence, and what reforms are helping. 📄 Read-aloud
  11. Big Data and New Ways to Measure the Economy How economists now use satellite images, online prices, card transactions and tax records to measure things traditional statistics miss. 📄 Read-aloud
  12. Will It Work Here Too? External Validity and Scaling Up Why a programme that succeeds in one study may not work elsewhere or at a larger scale, and how economists try to judge when results travel. 📄 Read-aloud
  13. History and Case Studies as Evidence How economic history and detailed case studies complement statistical methods, and what they can reveal that experiments cannot. 📄 Read-aloud
  14. Machine Learning in Economics How economists use machine learning to measure poverty from satellite images, predict outcomes and find patterns, and why prediction is not the same as causation. 📄 Read-aloud
  15. Synthetic Control: Building a Comparison From Many How economists create an artificial "twin" of a place from a weighted mix of others to estimate the effect of a policy or event when no single good comparison exists. 📄 Read-aloud

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