The identification of theories applicable to issues of economic policy
The identification of the form of evidence against which the predictions of such theories can be tested and the results of tests carried out
The conclusions and recommendations for policy derivable from theory and empirical evidence
Module learning outcomes
On completing the module a student should be able to answer the following questions:
Why is a particular outcome a policy problem? What is wrong with, say, a 5 percent annual rate of inflation?
Which economic theories are relevant for an analysis of the defined problem, and in particular what alternative predictions and explanations of outcome do these theories offer?
What is the most reliable form of evidence against which theories can be tested and which theory does the weight of available evidence support?
There is no single text, or small set of texts, which is adequate for this module. We will use several academic journal articles. However, the textbook "Mostly harmless econometrics: An empiricist's companion, by Angrist, Joshua D., and Jörn-Steffen Pischke , Princeton university press, 2008" provides useful background material.