Research Methodology for Applied EconomicsLecture 1*

Introduction to the CourseSyllabus (handout)TextbookEthridge, 2004, 2nd editionResearch Methodology in Applied Economics

Grading 1 2 Suggested exercises (end of chapter)2 exams (Nov 6 & 13)Office hours1 hour/day, 11:00am 12:00noon, place TBA*

Justification for the Study of Research MethodologyNeed for formal, focused attention within the economics discipline on how to organize and conduct research in applied economics

Two central objectives:Overview of the conceptual and philosophical basis of research methodology in economicsProcedural guidelines on planning, designing, and conducting research projects*

Reasons to Study MethodologyMethodology is the manner in which we approach and execute functions or activitiesConsists of approaches or guidelines, not specific details of how we do the task (they are methods)Within a discipline, there are accepted rules of evidence and reasoningResearch methodology provides the principles for organizing, planning, designing and conducting research. (It does not tell you how to do specific research).*

Reason for Studying Research Methodology The central reason for studying research methodology is that it provides a time-tested, proven means of producing new, reliable knowledge. That accumulated, growing body of knowledge comprises a discipline, or perhaps a science (p 4)*

We need to differentiate research methodology from research methods:

Methodology general approaches or guidelines

Methods specific details and/or procedures to accomplish a task*One course can not teach all methods in Agricultural Economics!

Examples of methods?(regression analysis, optimization models, surveys, econometrics .. )

Research Methodology in EconomicsStudy which integrates the various components of economics to accomplish a defined, goal-directed researchTo expand our knowledge and make that knowledge useful to the study of world problemsTo learn by doing under the supervision of an advisor (shown to be an effective model)Pull together various aspects of economic theories, methods, and analysis to present in a coherent, logical, reliable and useful manner.

*

Recommendation from the Commission on Graduate Education for Economics in the US (1991)More emphasis on real world problems and the application of economic research to them;More emphasis on communication skills, especially writing, and the ability to relate economic knowledge to the public.

FLAWWE TEACH STUDENTS TO KNOW ECONOMICS, BUT WE RARELY TEACH THEM TO DO ECONOMICS (p 6)*

Paradigm Shift for Success in Graduate School is NeededNot determined solely by the understanding of theories or techniquesWhat is needed is the understanding of economic issues, literature, research process and ability to conduct research and communicate results to the stakeholders.*

Common flaws in MethodologyFailure to:

Establish the reason for the researchProvide clear & concise objectivesProvide complete reference to prior research on the subject and methodsLack of understanding for the conceptual and theoretical basis of the researchSelection of analytical structural model for mere empirical convenience (or familiarity)Presenting conclusions that are merely restatements of analytical findings (ie. results)*

Objectives and Focus of the CourseIncrease proficiency and effectiveness in economic research efforts

Two primary objectives:introduction to the conceptual and philosophical foundations of research methodology for applied economics researchprocedural instruction on how to plan, design, and conduct research projects*

Creating good habits for graduate studentsDoing research entails planning and designing the research, implementing and completing the analysis and disseminating the results.

Conducting research that is defensible, useful and expands our knowledge base is not an accident.*

Examples of bad Methodology

Unclear about the research problemUnclear about the objectivesLack thorough awareness of previous workIncomplete conceptualization of the problemConfusing research means with ends

Good research is no accident. (p 7)*

What this course is not aboutPhilosophy of science

Economic methodology (the approach to economic reasoning)

Research methods (techniques)

*

Ethridge addresses 2 divergent but related aspects of economic research methodology:Processes of discovery and confirmationDiscovery deals with formulating, finding, and creating new knowledge, informationConfirmation deals with validity or reliability of informationDiscovery is a creative process (art) requiring questioning, probing, pursuing alternative avenues of exploration, etc..Confirmation is more highly developed and this is the science part of the discipline

*

Assumptions about the studentsYou will conduct or be required to do researchYou have basic knowledge of economic theoriesYou know basic statistics and social sciences analytical techniquesYou are able to think abstractlyYou think critically (but not in extreme form cynicism, which is a barrier to understanding)You have the ability to synthesize from the facts and information in front of youAbility to discern privately held beliefs from concepts supported by evidence ie. need for objectivityYou are currently initiating a research project*

Perspective and Views of the Author (Don Ethridge)(I like the way he lays out his beliefs and biases this is rarely done)

Ethridge appreciates economic theory, but likes to focus on applied, problem solving issues.the beauty of economics rests in its theory, but the power of economics lies in its application to current problems.His beliefs are a mixture of positivism, normativism, & pragmatism, but mainly pragmatism.He sees economics as both an art and a science*

Organization of the CourseDefinitional , conceptual and philosophical aspects of Research Methodology (Chap 2 4)Define terms and concepts, examine the methodology of process, how research methodology is related to science, knowledge and objectivity, prediction, etc..Procedural aspects (Chap 5 9) planning and organizing researchReporting of Research (Chap 10)

*

******************