Evidence-based policymaking : promise, challenges and opportunities for accounting and financial markets research

  • The use of evidence and economic analysis in policymaking is on the rise, and accounting standard setting and financial regulation are no exception. This article discusses the promise of evidence-based policymaking in accounting and financial markets as well as the challenges and opportunities for research supporting this endeavor. In principle, using sound theory and robust empirical evidence should lead to better policies and regulations. But despite its obvious appeal and substantial promise, evidence-based policymaking is easier demanded than done. It faces many challenges related to the difficulty of providing relevant causal evidence, lack of data, the reliability of published research, and the transmission of research findings. Overcoming these challenges requires substantial infrastructure investments for generating and disseminating relevant research. To illustrate this point, I draw parallels to the rise of evidence-based medicine. The article provides several concrete suggestions for the research process and the aggregation of research findings if scientific evidence is to inform policymaking. I discuss how policymakers can foster and support policy-relevant research, chiefly by providing and generating data. The article also points to potential pitfalls when research becomes increasingly policy-oriented.

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Metadaten
Author:Christian LeuzORCiDGND
URN:urn:nbn:de:hebis:30:3-479752
URL:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3289935
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 611
Series (Serial Number):CFS working paper series (611)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2018
Year of first Publication:2018
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2018/11/29
Tag:Evidence-based policymaking; accounting; capital markets; causal inferences; cost-benefit analysis; finance; political economy; regulation; standard setting
Issue:April 2018
Page Number:53
HeBIS-PPN:439817129
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL-Classification:A General Economics and Teaching / A1 General Economics / A11 Role of Economics; Role of Economists; Market for Economists
Sammlungen:Universit├Ątspublikationen
Licence (German):License LogoDeutsches Urheberrecht