1、1Research Methodology in Applied EconomicsDr.Hwang Jaw LeeVisiting Professor,CARDZhe-Jiang UniversityApril 3,20032We do a better job of teaching theory and tools than teaching their use Students need more training in the relevance and application of the tools.COMMISSION ON GRADUATE EDUCATION IN ECON
2、OMICE,American Economic Association,19913 Research methodology provides the principles for organizing,planning,designing,and conducting research.The central reason for studying research methodology is that it provides a time-tested,proven means of producing new,reliable knowledge.4 Economic research
3、 methodology is,in a sense,science and art of economics rolled together,with its goal being to both expand our knowledge and make the knowledge relevant the contemporary world.5 Doing research entails planning and design the research implementing and completing the analysis disseminating the results
4、 of the research6Two aspects of economic research Discovery-deals with formulating,finding,and creating newknowledge or information-alternative avenues of exploration and the like requiring questioning,probing,pursuing a creative process-an art side of discipline Confirmation-deals with discerning t
5、he validity or reliability ofknowledge or information-the“science”side of discipline7The Definition of Research Websters Collegiate Dictionary(1977)studious inquiry or examination;esp.:investigation or experimentation aimed at the discovery interpretation of facts,revision of accpted theories or law
6、s in the light of new facts,or practical application of such new or revised theories.8 Andrew and Hildebrand(1982)the orderly procedure by which man increases his knowledge.Ghebremedhin and Tweeten(1988)the application of the scientific approach to the study of a phenomenon Leedy(1985)the manner in
7、which we attempt to solve problems in a systematic the validity of the solutions to problems others have presumably resolved9Research is the systematic approach to obtaining new and reliable knowledge.10 Classifications of Research Basic vs.Applied Research Disciplinary,Subject-Matter,and Problem-So
8、lving Research Analytical vs.Descriptive Research Qualitative vs.Quantitative Research1112The Definition of Methodology Websters Collegiate Dictionary(1977)a body of methods,rules,and postulates employed by a discipline;the analysis of the principles or procedures of inquiry in a particular field.13
9、 Schematic of the Research ProcessSclentlfic/Professional community(peers)Interpret results and draw conclusionsFormulate goals/objectivesPlan and design researchGenerate research resultsQuestion/problemFormal TrainingProducers,consumers,policy makersOther disciplinesService expertise14Guidelines fo
10、r helping you to be creative Gather and use previously developed knowledge;Exchange ideas with other people,especially your colleagues;Capture your intuition by applying deductive logic;Cultivate the ability to look at things in alternative ways;Question or challenge assumptions;Practice searching f
11、or patterns or relationships among occurrences or things;15 Do not be afraid to take risks;Cultivate a degree of tolerance for uncertainty;Allow your curiosity;When you are unable to resolve a troublesome problem,try abandoning it,at least in your conscious mind,for a while;Discipline yourself to wr
12、ite down your thoughts;Create situations in which you have freedom from distraction;16 The Search for Quantitative Economic Knowledge The Postulation Approach logic to obtain knowledgeReal-world PhenomenaProcess of AbstractionAxiom or Postulate systemRules of Logic(Theorems and Lemmas)ConclusionsPro
13、cess of Interpretation or RealizationReal-World ConclusionEvaluation17 The Experimental Approach Reproducible knowledge Real PhenomenaConclusions reached by Way of PostulationExperimental AbstractionSample ObservationsStatistical InterpretationConclusionsEvaluationExperimental DesignExperiment18 The
14、 Econometric ApproachTheoryModelEconometric ModelFactsDataRefined DataEstimation of the Econometric Model with the Refined Data Using Econometric TechniquesStatistical TheoryEconometric TechniquesStructural AnalysisForecastingPolicy Evaluation1920 Econometric analysis of economic modelsE c o n o m i
15、 c t h e o r y o r Economic modelEconomic model or a statement of the economic theory in an empirically testable formDataSome p r i o r informationEstimation of the modelTests of any hypothesis suggested by economic modelUsing the model for prediction and policy21 Linkages among Components of a Research ProjectProblemDefinitionConceptual FrameworkLiterature ReviewObjectivesMethods and Procedures
