Econ 665

Economic Experiments & Impact Evaluation

Course Description

A key challenge in public policy is determining whether policies and interventions have a measurable impact on living standards and measures of well-being. What are the impacts of programs and initiatives that have been implemented, or at least piloted on a small scale? For example, the impact of conditional cash transfers on education, health and well-being of children, or the impact of financial literacy training on the ability of households to manage their finances? Over the past decade, a large literature has emerged to attempt to answer these important questions.

This course exposes the students to key concepts and quantitative tools in impact evaluation. It will draw examples from studies and evaluations that have been conducted around the world in recent years. It will introduce students to experimental and quasi-experimental approaches that have been used in impact evaluation. Students will use Stata to analyze microeconomic data and apply various quantitative approaches. The empirical exercises include both in-class exercises and problem sets.

Specific Learning Goals

Clear understanding of causal identification: what it is, what it isn’t, and why it matters
How to achieve causal identification: what are the key methods and how to apply them.
1. Including both experimental and quasi-experimental approaches
2. Including familiarity with recent examples of applications
3. Including hands-on skills in applying each method using Stata
What are the pros and cons of each method: what are the data requirements, what are the underlying assumptions, under which conditions are the assumptions reasonable, which is the best method for a given context?

Course Modules

Randomized Controlled Trials

Potential Outcomes Framework

Power calculations

Design & Challenges

Statistical Inference

Ethics & Transparency

Quasi-Experimental Evaluation

Instrumental Variables

Regression Discontinuity

Panel Data & Fixed Effects

Difference in Differences

Advanced DiD & Event Study

Example Readings

Methodological

Cunningham (2021). Causal Inference the Mixtape. Yale: New Haven.

Glennerster and Takavarasha. (2013) Running Randomized Evaluations. Princeton, NJ: Princeton.

Christensen, Freese, and Miguel. (2019). Transparent and Reproducible Social Science Research. Oakland, CA: University of California Press.

Djimeu and Houndolo. (2016) “Power calculation for causal inference in social science: Sample size and minimum detectible effect determination” 3ie Working paper 26.

Anderson (2008) “Multiple Inference and Gender Differences in the Effects of Early Intervention“ Journal of the American Statistical Association. 103(484): 1481-1495

de Chaisemartin and d'Hautfoeuille (2020) "Two-way fixed effects estimators with heterogeneous treatment effects" American Economic Review. 110(9): 2964-2996

Applications

Belissa, Bulte, Cecchi, Gangopadhyay, and Lensink. (2019) “Liquidity constraints, informal institutions, and the adoption of weather insurance: A randomized controlled Trial in Ethiopia” Journal of Development Economics. 140: 269-278.

Gine and Mansuri. (2018) “Together We Will: Experimental Evidence on Female Voting Behavior in Pakistan” American Economic Journal: Applied Economics. 10(1):207-35

Miguel, Satyanath, and Sergenti. 2014. “Economic shocks and civil conflict: An instrumental variables approach” Journal of Political Economy, 112(4):725-753.

Lucas and Mbiti. (2014) “Effects of school quality on student achievement: discontinuity evidence from Kenya” American Economic Journal: Applied Economics. 6(3): 234-263.

Card and Krueger (1994). “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania” The American Economic Review. 84(4) 772-793.

Duflo. (2001) “Schooling and labor market consequences of school construction in Indonesia” American Economic Review. 91(4): 795-813.

Getting Started with Stata

Workflow basics (Anders Sundell)

Basic commands and shortcuts (Tobias Pfaff, 2009)

Printable Stata cheat sheets (Geocenter)

More complete tutorial (Oscar Torres-Reyna)

Google Sites

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