Answer:The need for evidence-based policy in the field of education is increasingly recognized 
(e.g., Commission of the European Communities 2007). However, providing empirical 
evidence suitable for guiding policy is not an easy task, because it refers to causal inferences 
that require special research methods which are not always easy to communicate due to their 
technical complexity. This paper surveys the methods that the economics profession has 
increasingly used over the past decade to estimate effects of educational policies and 
practices. These methods are designed to distinguish accidental association from causation. 
They provide empirical strategies to identify the causal impact of different reforms on any 
kind of educational outcomes. 
The paper is addressed at policy-makers, practitioners, students, and researchers from other 
fields who are interested in learning about causal relationships at work in education, but are 
not familiar with modern econometric techniques. Among researchers, the exposition is not 
aimed at econometricians who use these techniques, but rather at essentially any interested 
non-econometrician – be it theoretical or macro economists or non-economist education 
researchers. The aim is to equip the interested reader with the intuition of how recent methods 
for causal evaluation work and to point out their strengths and caveats. This will not only 
facilitate the reading of recent empirical studies evaluating educational policies and practices, 
but also enable the reader to interpret results and better judge the ability of a specific 
application to identify a causal effect. To do so, this paper provides a guide to the most recent 
methods that tries to circumvent any econometric jargon, technicality, and detail.1 
 Instead, it 
discusses just the key idea and intuition of each of the methods, and then illustrates how each 
can be used by a real-world example study based on a successful application of the method, 
with a particular focus on European examples. 
It is, however, useful to note that the methods described here are by no means confined to 
the economics profession. In fact, it was the American Educational Research Association, 
with its broad range of interdisciplinary approaches to educational research in general, which 
recently published an extensive report on “Estimating Causal Effects using Experimental ideas
Explanation: As related above