Insider Econometrics: Empirical Studies of How Management Matters

75 Pages Posted: 1 Feb 2010 Last revised: 5 Sep 2010

See all articles by Casey Ichniowski

Casey Ichniowski

Columbia Business School - Management; National Bureau of Economic Research (NBER)

Kathryn L. Shaw

Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

Date Written: December 2009

Abstract

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 within a single industry is central to this empirical research methodology. The paper considers a number of studies to illustrate persuasive features of insider econometric research and summarizes a number of themes emerging from this line of research.

Suggested Citation

Ichniowski, Bernard E. (Casey) and Shaw, Kathryn L., Insider Econometrics: Empirical Studies of How Management Matters (December 2009). NBER Working Paper No. w15618. Available at SSRN: https://ssrn.com/abstract=1544717

Bernard E. (Casey) Ichniowski (Contact Author)

Columbia Business School - Management ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kathryn L. Shaw

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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