Categories
Development economics methodology methods Research Vignettes World Bank

Vignettes as method… both an input and output tool

Vignettes can be an invaluable tool for generating, controlling for, interpreting and contextualising research data in a variety of fields. They can be both input and output methods of research. Finally, they can also frame, and be framed by, the research raising important questions about comparability, use, and ability to measure culturally relative norms. This post discusses the use of vignettes, when they might be appropriate, some relevant literature, and matters to be aware of.

Gourlay et al define vignettes as “short stories about a hypothetical person, traditionally used within research (qualitative or quantitative) on sensitive topics”. They can be used to gain insight into people’s beliefs, and can be a way of discussing sensitive or personal topics freely by projecting these on to a third person. Vignettes can be constructed through text or images, and Hughes and Huby set out a guide to constructing and interpreting vignettes as a methodology in the social sciences.

Vignettes can both generate or refine data. As the GIF above shows, they can be an input tool, generating and shaping the data gathered. Similarly, they can be used as an output tool, contextualising and illustrating research findings. Kandemir and Budd note that, given the debate ongoing about the precise definition and use of vignettes, simulations, real-life stories, anecdotes, or simply a narrative form of presenting research findings have all been referred to as vignettes.

In development economics, vignettes are not commonly deployed, but can respond to a specific methodological problem. For example, the measurement of intangibles such as happiness or subjective wellbeing or satisfaction can suffer from cultural relativity. Concepts, words, and their ultimate meaning can all vary by country or culture, making comparative studies in their area particularly tricky to undertake. However, in an era when the value of measurements like GDP have been questioned as inadequate, being able to measure satisfaction, happiness and similarly intangible attitudes is especially important for those working in development.

Reviewing the literature on what constitutes happiness between cultures, Uchida et al find that there are a variety of factors that determine an individual’s likelihood of declaring themselves happy, and that these requirements are culture-specific. What constitutes a good life in Japan includes emotional support from others, while personal achievement and self-esteem feature more prominently in the United States.

There are also cultural differences in the way we describe our happiness. Research by Minkov cited here notes that responses from Middle Eastern respondents tends towards extremes of happiness and unhappiness, while Asian and Western respondents tend towards moderation. Minkov and Bond have also examined the genetics of happiness as well as the impact of local climate, finding that certain genetic traits have a far greater impact on perceived happiness than factors such as recent economic growth or the rule of law.

King et al examined the incomparability of survey results when measuring subjective wellbeing and explored the use of vignettes as a way of measuring the incomparability. They find that “[b]ecause the actual (but not necessarily reported) levels of the vignettes are invariant over respondents, variability in vignette answers reveals incomparability. Our corrections require either simple recoded or a statistical model designed to save survey administration costs. With analysis, simulations, and cross-national surveys, we show how response incomparability can drastically mislead survey researchers and how our approach can alleviate this problem”.

One technique to measure and make sense of the variables in to anchor survey results to vignettes. This method is used by Angelini et al in their cross-country comparison of subjective wellbeing in 10 European countries. Standardised vignettes on life stories were included in each of the ten national surveys, and the vignette responses were included through econometrically rescaling self-responses according to how the respondent rated the standardised vignettes. This reduces disparities in life satisfaction across nations, and changes the ranking across counties from the original unadjusted cross-country data.

While the anchoring vignettes method has the potential to improve welfare comparisons and reporting, it relies on certain assumptions like vignette equivalence. This means that a particular vignette is capable of being interpreted and have the same cultural ramifications across the populations surveyed – for example, is a large family a blessing or a burden? There are ways of testing vignette equivalence, but this also usually requires some degree of interpretations and relativity.

Jed Friedman remarks that “[v]ignette anchoring can indeed improve the inter-comparability of different samples so where researchers have the opportunity to add meaningful vignettes to a planned survey then they should do so. But the assumption of vignette equivalence is not guaranteed, especially when comparing dramatically different populations in terms of culture and custom. If we have any doubt about vignette equivalence there may be no alternative to more focused mixed-methods research into the interpretation of [subjective wellbeing] concepts specific to the populations studied”.

While vignettes anchored to subjective wellbeing analyses can measure the incomparability of data, there are limitations to their use that also need clear explanation. The problems with language, interpretation, translation, and cultural norms remain, and there is the possibility that use of a vignette as a methodological tool to control for variability and comparability is still simply testing cultural frames. As noted, vignettes can both be used as a tool to output (explain, contextualise and understand) data, and as a tool to input (gather, frame, collect) data. Kandemir and Budd note that, to be of value, the vignette must be specific enough to guide the respondent, but not too specific as to nudge the respondent into an “expected” answer. In short, vignettes can both frame, and be framed by, the cultural norms in which they are constructed and deployed, and any researcher must be mindful of, and reflexive about, the use existing frames within vignettes when these are used both as research method inputs and outputs.

Categories
economics Procreate Research Thesis Visualising ESL

Visualising interactions in colour

What if we visualise interactions according to their type? Legal aspects of interactions are red, economic are yellow, and social or other aspects are green.

The first GIF here imagines what interaction patterns might look like if we use yellow for economic phenomena, red for legal phenomena, and green for social, political and/or power-oriented phenomena. They are presented separately, performed between actors represented by the red dots.

The following GIF asks what this might look like when these phenomena occur simultaneously.

The colours show the various phenomena as they are simultaneously performed through interactions.

It is worth noting though that by using colour to separate out the economic, legal, and social phenomena, we are using “embeddedness-based” ESL lenses. In other words, we are accepting that legal, economic and social phenomena are separate.

As I argue elsewhere on this blog, if we really want to talk about, think about, and do the econolegal better, we need to move beyond embeddedness.

Future posts will explore what this might look like.

Categories
economics Free market Gig economy Infrastructure Research Uncategorized

Complexity and Community are crucial for rethinking economics

What could society look like if we do economics better?

Do mine eyes deceive me? I came across this post by Evan Davies on the BBC website, where he blogs about the changes taking place in economics. For those fond of the TL;DR, he says that economics has been, and still is, in need of a radical overhaul, given that most economists did not foresee the 2008 financial crisis, and that economics has not addressed its flaws in the decade since. Davies sets out the “two Cs” that make “neoliberal” or orthodox economics models risky (to put it mildly), and these are Complexity and Community. The short version is that people are Complex souls who live in Communities. Well, duh! Some of us have a been banging on about this for a while now.

Davies is clear not to make a straw man of mainstream economics though. And this is an important point. Microeconomics – the small-scale interactions between actors – has been remarkably successful in boiling down our collective lives into theories, formulae, and models that guide economists towards understanding how we act (and then nudging us in the right direction to make better decisions). But macroeconomics – the larger scale stuff that includes GDP, interest rates, international trade and investment and so on – tends to draw on the microeconomic theories and scale them up. But as we all know from experience, the more people you include, the more complicated it becomes to plan anything. And that’s before you start on complex interaction patterns across communities and societies.

Why have things started to change now? As I wrote in a previous post, change occurs gradually. Many successful careers have been built on the status quo of neoliberal or neoclassical, orthodox economics. The core of the academic economics community has developed, advocates, practices and teaches this approach. So revolutions, as in most areas of life, tend to be the exception. When we start to question the entire shape and direction of a discipline, there are myriad interests at play that all need to be reoriented. The mainstream journals, senior economists, and general momentum is geared towards neoclassical theory, and its implementation as neoliberal economic policy. In short, we are steering an oil tanker rather than a Mini Cooper.

Secondly, neoliberal economics is plugged into and reflected in the political mores of the day, and neoliberalism in politics remains in the ascendancy. A theory of economics that retreats from and questions this is bound to raise eyebrows. Perhaps then, eleven years might be a relatively short timespan for the reorientation, or evolution, of a discipline.

So what changes are actually happening now? The past decade has seen a wave of literature questioning the type of society we want to live in, both locally and globally, and the type of economics that might realise this.

But there are more recent projects turning explicitly to the way we do economics and its role in society that are much more exciting. The NIESR has a project underway Rethinking Macroeconomics, which is ESRC funded. The IFS is launching a project looking at inequality in the UK and targeting questions like the kind of society we want (a particularly timely question in the light of the most recent UN Report citing poverty as endemic in the UK). And then there are the centres rethinking traits of orthodox economic theory like the Paul Woolley Centre at LSE, the full title of which is “The Paul Woolley Centre for the Study of Capital Market Dysfunctionality”. The Centre essentially asks what happens if the frictionless markets featured in economic models suffer from, well, friction.

But what alternatives are there? If you’re familiar with some of my previous posts, you’ll know I’m a fan of socio-economic and econo-socio-legal approaches that take economics back into the social sciences. There are myriad alternatives though within these disciplines, including relational work, actor-network theory, community lens, network analysis, systems analysis, and many more. Zooming out somewhat, historical, geographical, psychological and anthropological approaches can also contribute to an understanding of economics as it really is performed in the real world.

But, why should we care? To make a bold, and controversial statement, economics is usually one cause of most social issues facing us today. What do I mean? The rise of populist politics caters to the anger and frustration of the “have nots” in society (economics). Austerity as a response to the financial crisis enacts neoliberal economic theories (economics). The lack of living wages and the rise of insecurity, the precariat, and the gig economy has resulted from technology and a reluctance of government to intervene based on neoliberal economic theories about the free market (economics). Climate change and global warming continue unabated because of the economic consequences of actions to tackle environmental issues head on (once again, economics).

In short, if we want to get society right, we need to get economics right. And that means a retreat from the belief that there is one “right” way of “doing economics”. It means recognising (or re-recognising) that economics is about how people act and interact. And that we do not always act rationally, or even in our best interests. Until economics models and formulae reflect this, we are left with a hollowed-out version of economics that cannot reflect the full complexity of real life. And this is something we all pay the price for. A broader, richer understanding might help us spot the next financial crisis looming on the horizon.