The External Validity of Laboratory Experiments : The Misleading Emphasis on Quantitative E ¤ ects
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Theory, General Equilibrium and Political Economy in Development Economics
I discuss the role of economic theory in empirical work in development economics with special emphasis on general equilibrium and political economy considerations. I argue that economic theory plays (should play) a central role in formulating models, estimates of which can be used for counterfactual and policy analysis. I discuss why counterfactual analysis based on microdata that ignores gener...
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Laboratory experiments are used to address a wide variety of questions within economics, including whether behavior is consistent with the predictions and assumptions of theory and how various mechanisms and institutions affect the behavior of economic agents (see Roth 1987 for an overview). The experimental laboratory has become an integral part of the field of economics and a productive dialo...
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