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BOOK REVIEWS treatments’’ such as labor train- clude an excellent list of refer- Mostly Harmless ing programs. Some simplicity ences. The first chapter is set up Econometrics: An is achieved by the authors’ ad- in the form of ‘‘frequently asked Empiricist’s Companion vocacy of only two estimation questions.’’ These include causal methods, namely ordinary least relations, ideal vs. real life ‘‘ex- squares and instrumental vari- periments,’’ and the basis of ables estimation (IVE) and its statistical inference involved. By Joshua D. Angrist and special case, two-stage least The second chapter deals with Jorn-Steffen Pischke. 2008. squares estimation, and also by the ‘‘experimental ideal’’ in the New Jersey: Princeton University the insistence on linear models, context of regression analysis. Press, pp. 392, $75.00, hardcover, regardless of whether the re- The complication arises by the $35.00 paperback. lationship is linear or not. As it ‘‘selection problem,’’ which is happens, the authors have been illustrated by the research ques- fortunate to be able to claim, tion whether hospitals make Business Economics (2010) ‘‘labor economists like us are people healthier or not. The is- 45, 75–76. doi:10.1057/be.2009.37 used to working with tens of sue here is that in comparing thousands of observations or
Business Economics – Springer Journals
Published: Jan 1, 2010
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