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Cambridge Journal of Economics Advance Access originally published online on November 18, 2008
Cambridge Journal of Economics 2009 33(3):405-419; doi:10.1093/cje/ben047
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© The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

This article appears in the following Cambridge Journal of Economics issue: Special focus: The intellectual legacy of Brian Reddaway [View the issue table of contents]

Applied economics, contrast explanation and asymmetric information

Tony Lawson*

* University of Cambridge, UK. For helpful comments I am grateful to referees of an earlier draft

Address for correspondence: Faculty of Economics, Sidgwick Avenue, Cambridge CB3 9DD, UK; email: tony.lawson{at}econ.cam.ac.uk

The purpose of this paper is to illustrate the workings of an explanatory method for applied economics. It is a method that is rarely explicitly examined or defended in the discipline, but which, I believe, has a lot of promise for the sorts of contexts that economists must address. My strategy is to show that, and how, the method in question effectively underpins at least one study already widely regarded as explanatorily successful.

Key Words: Ontology • Methodology • Applied economics • Contrast explanation • Asymmetric information

JEL classifications: A, B

Manuscript received February 27, 2006; final version received October 1, 2008.


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