Design-Based versus Model-Based Economic Research

Economics is divided methodologically between so-called "design" based research and "model" based research.

Those from the design camp emphasize the importance of causal identification. Randomization is the gold standard and thinking carefully about the causal parameter of important policies is central.

Those from the model camp emphasize theory, external validity, and welfare analysis.

Dave Card has a really nice presentation where he talks about the differences, puts them in historical context, and inserts a bit of what he thinks should happen regarding the divide.