Nested Analysis as a Mixed-Method Strategy for Comparative Research

"Nested Analysis as a Mixed-Method Strategy for Comparative Research" by Evan S. Lieberman, 2005

- link to the article http://www.princeton.edu/~esl/Lieberman%20Nested.pdf

Definition

Nested Analysis a research design where "statistical analyses can guide case selection for in-depth research, provide direction for more focused case studies and comparisons, and be used to provide additional tests of hypotheses generated from small-N research.  Small-N analyses can be used to assess the plausibility of observed statistical relationships between variables, to generate theoretical insights from outlier and other cases, and to develop better measurement strategies" (Lieberman, 2005, pg 2005). 

This method is an attempt at integrating small-N analysis (SNA) and large-N analysis (LNA).  It is an attempt to combine the strengths of both approaches.  Lieberman’s 2003 text Race and Regionalism in the Politics of Taxation in Brazil and South Africa, is a book-length example of a nested analysis research design.

Steps

1) “a prerequisite for carrying out a nested analysis…the preliminary LNA provides information that should ultimately complement the findings of SNA” (Lieberman, 2005, pg 438)

one must begin with large-N statistical study.  (Lieberman, 2005, pg 438) To use nested analysis, one cannot begin with an SNA and move to an LNA.   
Example from Lieberman 2003: Large-N comparison of  GDP per capita and ability to tax.  Lieberman notes that Brazil and S. Africa have the same GDP per capita, but there a large variation between their ability to generate revenue in the form of taxes (S. Africa above the norm, and Brazil below the norm).  This raises a question of why two countries at the same level of development have different capacities to generate revenue through taxation.  (Lieberman, 2003, pg 11)

2)  “The second major step of the nested analysis involves the intensive analysis of one or more country cases” (Lieberman, 2005, pg 440)

Example from Lieberman 2003:

In-depth, historical, case studies on the evolution of the tax systems in S. Africa and Brazil.  Lieberman looks at norms and discourse and determines that the states in S. Africa did a better job of collecting taxes from the upper classes (and thus collecting large tax revenues) because the elites paying taxes assumed that the taxes paid would go toward providing public services for themselves and those of the same ethnic group.  However, in Brazil, Elites were divided because the Federal system encouraged regional divisions so elites believed that any taxes that were collected from them would be redistributed across Brazil and would not necessarily go to benefit those from their region.  Thus a culture of tax evasion formed in Brazil but not in S. Africa despite similar levels of development.

Chart from Lieberman, 2005, pg 437