How should economics shape policy

| “Evidence-based policy” sounds unambiguously good—after all, what better foundation for policy than evidence? But actually turning evidence into policy is not straightforward, and on this episode of the Big Question, Chicago Booth and the University of Chicago’s Lars Peter Hansen and Kevin M. Murphy discuss the challenges of translating academic research into policy advice. Data need the support of theoretical frameworks to be useful for decision-making, they suggest—and economists