Theory AND Empirics (Not Theory OR Empirics)

No one cares what your empirical results are if they don’t overturn/corroborate some economic/financial theory.

Likewise, no one cares about your fancy model and its complicated solution if it doesn’t address a real-world problem.

You can’t escape the real world by burrowing into theory, and you can’t circumvent theory by digging into data. A solid paper needs to be strong on both dimensions.

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Theory AND Empirics (Not Theory OR Empirics)

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