Policy relevance of applied economist: Examining sensitivity and inferences
It is assumed that research based
on empirical data produces factual insight that can be used to guide evidence
based policies. However, researchers may tend to specify models based on prior
beliefs and construe results accordingly. In this paper, we argue that greater
scrutiny is needed along the research process to acknowledge and communicate
the limitations of research findings. To illustrate, we review two empirical
papers from applied economists aimed at influencing policy. Each paper is
analysed to identify how inferences based on prior beliefs are used to specify
models and how this impacts the result. Additionally, consideration is given to
the sensitivity of results under alternative assumptions. While we do find that
the considered papers provide valuable knowledge to the field of agriculture
economics, they fail in disclosing the limitations of their results to decision
makers, thus undermining considerably their policy relevance. Finally,
approaches to increase objectivity in empirical research are considered.
[ - ]