Question

Consider the empirical exercise in von Hohenberg & Hager (2022).

(A) Explain in layman’s terms the research question examined in this paper. Use no more
than 3 sentences.
(B) Discuss the intuition underlying the identification strategy used to answer this research
question.
(C) To what extent can these estimates be interpreted causally? Give reasons for your answer.
(D) If you were to design an empirical strategy to examine this research question to derive
causal estimates, what would you do differently?
(E) What do the authors propose as the mechanism underlying the baseline effect? Can you
think of any other potential mechanisms that can be relevant in this context?

Answer 1

The von Hohenberg & Hager (2022) study deals with behavioral responses observed in data to identify causal relationships, and the importance of replication highlights the need for robust methodologies that thoroughly control for confounding variables and bias. Alternative mechanisms to the primary findings could include sociocultural, psychological, or economic factors.

Step-by-step explanation:

The von Hohenberg & Hager (2022) paper examines specific behavioral responses interpreted from collected data, although the exact nature of these responses is not described in the provided context. The intuition underlying their identification strategy likely involves comparing observed behaviors under various conditions to discern patterns that suggest causal relationships. Their estimates can be interpreted as causal to the extent that their methodology rigorously controls for confounding variables and other potential biases.

If designing an empirical strategy, one would prioritize random assignment, if feasible, or use longitudinal data to strengthen causal inference. It would be important to ensure that all relevant variables are measured and that the operational definitions used are consistent and replicable.

The authors presumably suggest a mechanism based on the data findings, but alternative mechanisms could involve sociocultural factors, psychological predispositions, or economic incentives that weren't considered in the study.

Replication of the findings is vital for establishing the validity and reliability of the research. Other researchers should strive to replicate the study to confirm the results and ensure that the findings reflect an actual effect rather than a statistical anomaly or methodological artifact.