Introduction

This book provides an overview of the recent evolution in empirical economics and considers the development and challenges of research brought about by this evolution. Furthermore, we broadly discuss how to make empirical economics a more fruitful discipline by incorporating new analytical methods. Our goal is to assess and discuss the future of empirical economics from a broad perspective. The book is divided into two parts. In Part I, the focus is on identifying causal relationships vis-à-vis the so-called credibility revolution, arising from the use of randomized controlled trials, natural experiments, and quasi-experiments. Part II is composed of detailed discussions arising from the evolution of empirical analysis in various fields of economics, the advantages and problems brought about by it, and solutions to these problems. The biggest feature of this book is that many researchers from different specialized fields, who rarely come into contact with each other in daily research activities, exchange their knowledge and so develop diverse discussions. Each chapter is structured in a three-part format: starting with the main argument of each author or authors, followed by comments from the discussant, and then a reply by the author(s) of the main argument.