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  3. American Economic Review
  4. July 2020
  5. Experimentation, Innovation, and Economics

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Experimentation, Innovation, and Economics

  • Michael Kremer
American Economic Review
vol. 110, no. 7, July 2020
(pp. 1974–94)
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Abstract

The experimental method not only helps identify causal relationships, but also provides economists with a rich sense of context, focuses research on specific practical questions, stimulates collaboration with practitioners and specialists from other fields, and allows for rapid iteration. In this lecture, I present a series of examples illustrating how together these features make the experimental approach a powerful tool for advancing scientific understanding, informing policy, and promoting innovation. I then discuss how institutions can be designed to accelerate innovation and direct it toward the world's most pressing needs.

Citation

Kremer, Michael. 2020. "Experimentation, Innovation, and Economics." American Economic Review, 110 (7): 1974–94. DOI: 10.1257/aer.110.7.1974

JEL Classification

  • B31 History of Economic Thought: Individuals
  • C90 Design of Experiments: General
  • I10 Health: General
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • O30 Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
  • O43 Institutions and Growth