Randomised controlled clinical trials are the best source of evidence for assessing the efficacy of drugs. Observational studies provide critical descriptive data and information on long-term efficacy and safety that clinical trials cannot provide, at generally much less expense. Observational studies include case reports and case series, ecological studies, cross-sectional studies, case-control studies and cohort studies. New and ongoing developments in data and analytical technology, such as data linkage and propensity score matching, offer a promising future for observational studies. However, no study design or statistical method can account for confounders and bias in the way that randomised controlled trials can. Clinical registries are gaining importance as a method to monitor and improve the quality of care in Australia. Although registries are a form of cohort study, clinical trials can be incorporated into them to exploit the routine follow-up of patients to capture relevant outcomes. Ecological studies Ecological studies are based on analysis of aggregated data at group levels (for example populations), and do not involve data on individuals. These data can be analysed descriptively, but not definitively for causation. Typical examples include studies that examine patterns of drug use over time. One example is the comparison of the use of non-steroidal anti-inflammatory drugs and COX-2 inhibitors in Australia and Canada. 11 Sometimes ecological studies describe associations between drugs and outcomes, such as changes in the rates of upper gastrointestinal haemorrhage after the introduction of COX-2 inhibitors. 12 However, because individual-level data are not presented, causality is at best only implied in ecological studies. The 'ecological fallacy' refers to the error of assuming that associations observed in ecological studies are causal when they are not. Cross-sectional studies Cross-sectional studies collect data at a single point in time for each single individual, but the actual data collection may take place over a period of time or on more than one occasion. There is no longitudinal follow-up of individuals. Cross-sectional studies represent the archetypal descriptive study. 1 Typically, they provide a profile of a population of interest, which may be broad, like the Australian Health Survey undertaken intermittently by the Australian Bureau of Statistics, 13 or focused on specific populations, such as older Australians. 14 Julia FM Gilmartin-Thomas NHMRC-ARC* Dementia research development fellow 1