5 A Concluding Note: Theory and Empirics
While I have tried to provide a conceptual overview in this essay, recent research in development economics has been almost entirely empirical. A veritable explosion in computing power, the expansion of institutional datasets and their increased availability in electronic form, and the growing ease of collecting one’s own data has bred a new generation of development economists. Their empirical sensibilities are of a high order; they are extremely sensitive to issues of endogeneity, omitted variables, measurement error and biases induced by selection. They are constantly on the search for good instruments or natural experiments, and when these are hard to find, they are adept at creating experiments of their own.
5 A Concluding Note: Theory and EmpiricsWhile I have tried to provide a conceptual overview in this essay, recent research in development economics has been almost entirely empirical. A veritable explosion in computing power, the expansion of institutional datasets and their increased availability in electronic form, and the growing ease of collecting one’s own data has bred a new generation of development economists. Their empirical sensibilities are of a high order; they are extremely sensitive to issues of endogeneity, omitted variables, measurement error and biases induced by selection. They are constantly on the search for good instruments or natural experiments, and when these are hard to find, they are adept at creating experiments of their own.
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