Evaluation of Economic Policy – A Closer Look at Current Methods
May 6, 2014: The public has an interest in knowing whether political measures effectively and economically achieve their goals. In empirical studies, which often serve as the basis for evidence-based economic policy, complex methods are often used to distinguish between actual causal effects and links generated in other ways. In Ifo Working Paper No. 178 Franziska Kugler, Ludger Wößmann, both from the Ifo Institute, and Guido Schwerdt, University of Constance, offer a non-technical overview of intuition and examples of the application of the modern scientific instruments that are used to evaluate causal effects.