Introduction

This chapter provides a comprehensive account of the challenges empirical economics faces. It explains approaches used implicitly by most researchers and shows where they are adequate and where they break down. It provides applied researchers with an understanding of these challenges and how best to overcome them. The chapter delves deeply into theoretical concepts and mechanisms, to bring them to light by thinking them through from different angles. This puts flesh on multifaceted issues like p-hacking and brings often abstract concepts to life. Unfortunately, the informal teaching is part of the problem, too, as many questionable research practices are thought from advisers to students, where sometimes neither of them realizes that they are in fact questionable. The chapter also presents an overview of the key concepts discussed in this book.