The Conceptual
Framework
Lecture 8
Organization of this lecture
Conceptual Framework:
Role of the Conceptual Framework
Theory: Source of Conceptual
Framework
Hypotheses and Hypothesis
Testing
Operational Suggestions
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Economics is the science of
thinking in terms of models
joined to the art of choosing
models which are relevant to
the contemporary world. Good
economists are scarce,
because the gift of using
vigilant observation to choose
good models appears to be a
very rare one.
John
Although a conceptual framework may
not always be required in a research
proposal, no economic research should
start without developing one.
There is more misunderstanding and
confusion about the conceptual
framework than any other part of a
research proposal (or project).
What is it?
What is the purpose?
How is it approached?
It is an integral part of understanding
and analyzing the research problem
A clear statement of the research
problem often does not occur until the
conceptual framework is developed.
It should be considered
complementary to the problem
description, statement of objectives,
and literature review, rather than a
fourth step.
The reasoning in the conceptual
framework runs through the whole
proposal.
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The conceptual framework is often
neglected, or done hastily and
inadequately
Reasons for this might be that it
requires complex reasoning and abilities
Abstract reasoning
Recognition and synthesis of central points
Knowledge of existing relevant theory
Understanding the details of a problem and
the surrounding issues
It is hard work and often frustrating
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Another reason the conceptual
framework is overlooked is that
researchers often want to get on with
real research instead of theorizing
(especially in subject-matter and
problem-solving research)
However, failure to conceptualize while
planning, may actually slow down the
research, or can lead to fatal errors in
design, procedures or interpretation.
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Role of the Conceptual
Framework
Concepts are generalizations. In
economics, a concept is a logical,
mental construction of one or more
relationships.
Concepts are inherently abstract and
are based on logic and reasoning. In
economics, concepts typically focus on
relationships between variables.
The primary purpose of the conceptual
framework is to lead to hypotheses
that are subject to testing
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The conceptual framework may be
viewed as an analysis of the research
problem using theory.
Economic theory will be used, and
possibly theories from other
disciplines as well.
The theories are identified and then
used in a conceptual analysis of the
specific research problem
Source Material for the
Conceptual Framework:
Theories
Which theory is relevant? The relevant
theory will provide insights into one or
more of the following issues:
Sources of the research problem
Possible solutions to the problem
Relevant variables
Relationships involved in analyzing the
problem
Hypotheses to be tested
(Williams, 1984)
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For example if one is interested in the
problem of water use efficiency of the Nile
river in Egypt:
The general theory of the efficiency in use of a
limited, but replenishable resource would be
used
The theory would be adapted to the particular
natural resource (water) and place (Egypt), in its
various uses (agricultural, domestic, industrial)
In this example, it is also likely that Egyptian
policy would need to be considered
eg. Egypt has a policy of free water for agriculture,
which affects water use efficiency
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Sometimes, there is no existing theory
sufficient to analyze the research
problem.
In this case, one can either develop or
refine a theory, or simply identify the
gap and present an incomplete
conceptual framework
This latter option of proceeding without an
adequate theoretical basis, might be
defensible in an MS thesis, but probably not
in a PhD dissertation or in professional
research
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Hypotheses and Hypothesis
Testing
A primary function of the conceptual
framework is to lead to hypotheses
relevant to the research problem.
Hypotheses result from the reasoning
done in the conceptual framework.
Hypotheses need to be testable and
refutable.
Hypotheses are tentative assertions
that are subject to testing.
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Hypotheses can take the form of a simple
proposition of an expected outcome, or can
assert the existence of a relationship. eg.
A simple proposition might be that one
production system, based on a particular
technology is more profitable than another
production system based on another
technology
A hypothesis of a relationship could be that in
demand for wine in the US, the per capita
consumption of wine is affected by price of
wine, the price of other beverages, per capita
income, religious affiliation, and ethnic
background
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Quantitative hypotheses are subject
to empirical testing, the most
common form being a statistical test.
Four characteristics facilitate this:
1)
2)
3)
4)
They must be stated in specific terms
Appropriate data must be available
Analytical techniques must be available
There must be a conceptual basis
(without which quantification only shows
association, not causation).
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Qualitative hypotheses can be of three
types (as introduced in Lecture 3)
1. Maintained hypotheses (assumed) often take
the form of assumptions we make on
conditions in which the problem exists. eg.
The commodity production segment in
agricultural may be assumed to be competitive
2. Diagnostic hypotheses deal with the causes of
a problem. eg. A countrys chronic trade deficit
may be hypotheses as due in part to foreign
investment policy and commodity price
ceilings.
3. Remedial hypotheses, which deal with solutions
to problems, are optional since they are so
closely related to diagnostic hypotheses
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Three difficulties people often have in
developing hypotheses are:
1. Absence of a clear theoretical
framework or absence of theory
2. Inability to use the framework
logically to see the hypotheses within
3. Failure to understand research
techniques that allow the hypotheses
to be tested
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Operational Suggestions
Keep a clear focus on the primary
purpose of the conceptual framework
to analyze the research problem.
A good way to start is to use simple
conceptual models, and then build on
them to the complexity and
sophistication necessary.
This can be a useful approach for all
kinds of research, policy analysis, and
problem solving.
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The following steps may be useful in
developing the conceptual model:
1) Study the research literature related to your
problem. How have others conceptualized
problems similar to yours? Are their
conceptual analyses adaptable to your
framework?
2) Reduce the problem to the simplest set of
conditions. Sometimes you can assume
away parts of a complex problem to gain an
initial understanding.
3) Identify applicable economic theory.
Consider a wide range of economic theories
in selecting the most appropriate.
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4) Start with a base model analysis.
Based on your literature review and basic
assumptions, start with a simple model
(statistical, graphical, mathematical )
5) Expand the base model to other relevant
dimensions of the problem. Alter and
relax assumptions, then reanalyze the
problem. This will likely make the model
more complex, but remember, the goal is
not complexity, but rather, accurately
addressing the problem.
6) Assemble relevant, testable hypotheses
from the conceptual analysis.
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Conceptual frameworks go by many
names; model, conceptual
model, conceptual considerations,
theoretical considerations, etc.
Sometimes it is simply integrated
into the problem description, but in
academic proposals, conceptual
frameworks are usually presented in
a separate section.
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