Insider econometrics

Casey Ichniowski

"The NBER Bulletin on Aging and Health provides summaries of publications like this. You can sign up to receive the NBER Bulletin on Aging and Health by email. This paper describes an approach for conducting empirical research into three interrelated questions that are fundamental to the field of organizational economics: 1.Why do firms in the same industry adopt different management practices?2.Does the adoption of a new management practice raise productivity? 3.If so, why does the new management practice raise productivity?This research approach, which we term insider econometrics, addresses these questions by combining insights from industry insiders with rigorous econometric tests about the adoption and productivity effects of new management practices using rich industry-specific data. Understanding the selectivity in the adoption and coverage of different management practices...