This textbook articulates the elements of good craftsmanship in applied microeconomic research and demonstrates its effectiveness with multiple examples from economic literature. Empirical economic research is a combination of several elements: theory, econometric modelling, institutional analysis, data handling, estimation, inference, and interpretation. A large body of work demonstrates how to do many of these things correctly, but to date, there is no central resource available which articulates the essential principles involved and ties them together. In showing how these research elements can be best blended to maximize the credibility and impact of the findings that result, this book presents a basic framework for thinking about craftsmanship. This framework lays out the proper context within which the researcher should view the analysis, involving institutional factors, complementary policy instruments, and competing hypotheses that can influence or explain the phenomena being studied. It also emphasizes the interconnectedness of theory, econometric modeling, data, estimation, inference, and interpretation, arguing that good craftsmanship requires strong links between each. Once the framework has been set, the book devotes a chapter to each element of the analysis, providing robust instruction for each case. Assuming a working knowledge of econometrics, this text is aimed at graduate students and early-career academic researchers as well as empirical economists looking to improve their technique.

"Robert, I don't have any savings. My house is worth less than I owe on it. I have no rich relatives. Mary's car was totaled, and mine's a piece of junk. I have little hope my wife will live, and if the child survives, he will be severely handicapped and need medical attention and care all his life." Joe paused trying to imagine what the future might hold for him and his son. "Possibly down the road when I'm more financially secure, I can adopt your standards, if I feel convicted to, but for the time I'm stuck with the state plan. Besides, I've paid my taxes all my life. Don't they owe it to me? I don't see how I can do it otherwise." Joe has to face reality...everything he has worked for, everything he loves in life is crashing around him and he is being pressured on all sides to cave in to the inevitable. Will he give up his rights and bow to the darkness surrounding him or will his faith in God's providence, and his convictions cause him to do the absolute right?