How Economists Learn from Data

These flashcards cover key vocabulary and concepts related to how economists analyze data and conduct studies to understand economic phenomena.

Empirical Evidence

Information obtained by observation or experimentation that can be tested and analyzed.

Selection Bias

A type of bias that occurs when the sample studied is not representative of the general population.

Randomized Control Trials (RCT)

An experimental design that randomly assigns participants to either the treatment or the control group to eliminate selection bias.

Internal Validity

The degree to which a study accurately establishes a causal relationship between treatment and outcome within the study's context.

External Validity

The extent to which research findings can be generalized to settings, people, times, and measures beyond the original study.

Causal Identification

The process of determining the effect of a treatment or intervention on an outcome.

Control Group

The group in an experiment that does not receive the treatment and is used as a benchmark to measure how the other group performs.

Treatment Group

The group in an experiment that receives the treatment or intervention.

Potential Outcomes

The outcomes that could occur for an individual under both treatment and no treatment, represented as Y1 (treatment) and Y0 (control).

Average Treatment Effect

The average difference in outcomes between the treatment group and the control group.