Measurement: what economist do and should measure

• Department of Economics

EUI Economics Lecture by Orazio Attanasio, Yale University.

A majority of economists have based, for a long time, empirical studies on a 'revealed preference' approach. I argue that such an approach, which restricts researchers to measure only actual choices along with available resources and prices, is too narrow. Instead, it is very useful to broaden the scope of empirical investigations by measuring also hypothetical choices, subjective expectations and beliefs, attitudes.

The lecture will provide some concrete examples of such approaches and how they can be integrated with traditional measures. This approach allows us to bring to data richer theoretical models.