randomized controlled trials, development...

41
Randomized Controlled Trials, Development Economics and Policy Making in Developing Countries Esther Duflo Department of Economics, MIT Co-Director J-PAL [Joint work with Abhijit Banerjee and Michael Kremer]

Upload: truongkiet

Post on 10-Jun-2018

222 views

Category:

Documents


0 download

TRANSCRIPT

  • Randomized Controlled Trials, Development Economics and Policy Making in Developing Countries

    Esther Duflo Department of Economics, MITCo-Director J-PAL [Joint work with Abhijit Banerjee and Michael Kremer]

  • Randomized controlled trials have greatly expanded in the last two decades

    Randomized controlled Trials were progressively accepted as a tool for policy evaluation in the US through many battles from the 1970s to the 1990s.

    In development, the rapid growth starts after the mid 1990s Kremer et al, studies on Kenya (1994) PROGRESA experiment (1997)

    Since 2000, the growth have been very rapid.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 2

  • Cameron et al (2016): RCT in development

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 3

    0

    50

    100

    150

    200

    250

    300

    1975 1980 1985 1990 1995 2000 2005 2010 2015Publication Year

    Figure 1: Number of Published RCTs

  • BREAD Affiliates doing RCT

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 4

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    1980 or earlier 1981-1990 1991-2000 2001-2005 2006-todayPhD Year

    Figure 4. Fraction of BREAD Affiliates & Fellows with 1 or more RCTs

    * Total Number of Fellows and Affiliates is 166.

  • Top Journals

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 5

    3ie_time

    Sector2000200120022003200420052006200720082009201020112012% of IER pre-2013

    Agriculture and rural development126681251522291548489.70%

    Economic policy01000001046220.70%

    Education911121028223425356667908223.10%

    Energy00001102021610.60%

    Environment and disaster management00110138781118173.40%

    Finance0121364915141728175.50%

    Health, Nutrition, and Population 2133315450787410110017219621623364.90%

    Information and communications technology0000119336814182.80%

    Private sector development012335585122226215.10%

    Public sector management02032435614613133.30%

    Social protection1268217141820294751525715.10%

    Transportation00001111002210.40%

    Urban development00101201244130.80%

    Water and sanitation012547558121312134.20%

    Total studies3045466782114111143173274296370377.

    YearNumber of Published RCTsNumber of Published Impact EvalsFraction of Published Impact Evaluations that are RCTYearNumber of Published RCTsNumber of Published Impact EvalsFraction of Published Impact Evaluations that are RCT

    198111100%1981-1990111385%

    198211100%1991-200011715874%

    1983000%2001-200523636664%

    1984000%2006-today1405238659%

    1985010%

    198622100%

    198711100%

    19882367%

    198922100%

    199022100%

    199133100%

    19921250%

    19935683%

    199481080%

    199591182%

    1996192095%

    199791753%

    1998192383%

    1999213560%

    2000233174%

    2001304764%

    2002274560%

    2003516974%

    2004548762%

    20057411863%

    20067812761%

    20079315460%

    200811719261%

    200916629057%

    201019732161%

    201125339564%

    201227243063%YearNumber of Published RCTsNumber of Published Impact EvalsFraction of Published Impact Evaluations that are RCT

    201313423457%1981-2000ERROR:#REF!ERROR:#REF!ERROR:#REF!

    20147615748%2001-2005ERROR:#REF!ERROR:#REF!ERROR:#REF!

    2015198622%2006-todayERROR:#REF!ERROR:#REF!ERROR:#REF!

    Figure 1: Fraction of Published Impact Evaluations that are RCTs

    Fraction of Published Impact Evaluations that are RCT1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201511000110.666666666666666631110.50.833333333333333370.80.818181818181818230.950.529411764705882360.826086956521739140.60.741935483870967750.638297872340425560.60.739130434782608650.620689655172413810.62711864406779660.614173228346456710.603896103896103930.6093750.572413793103448310.613707165109034230.640506329113924020.632558139534883710.572649572649572610.484076433121019110.22093023255813954

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCT

    Fraction of Published Impact Evaluations that are RCT1981-19901991-20002001-20052006-today0.846153846153846150.7405063291139240.644808743169398960.58885163453478628

    Publication Date

    Number of Published RCTs1981-19901991-20002001-20052006-today111172361405

    Figure 1: Number of Published RCTs

    Number of Published RCTs1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201211000212223158919919212330275154747893117166197253272

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCTs

    Fraction of Published Impact Evaluations that are RCT1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201511000110.666666666666666631110.50.833333333333333370.80.818181818181818230.950.529411764705882360.826086956521739140.60.741935483870967750.638297872340425560.60.739130434782608650.620689655172413810.62711864406779660.614173228346456710.603896103896103930.6093750.572413793103448310.613707165109034230.640506329113924020.632558139534883710.572649572649572610.484076433121019110.22093023255813954

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCT

    Fraction of Published Impact Evaluations that are RCT1981-19901991-20002001-20052006-today0.846153846153846150.7405063291139240.644808743169398960.58885163453478628

    Publication Date

    Number of Published RCTs1981-19901991-20002001-20052006-today111172361405

    Figure 1: Number of Published RCTs

    Number of Published RCTs1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201211000212223158919919212330275154747893117166197253272

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCTs

    Fraction of Published Impact Evaluations that are RCT1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201511000110.666666666666666631110.50.833333333333333370.80.818181818181818230.950.529411764705882360.826086956521739140.60.741935483870967750.638297872340425560.60.739130434782608650.620689655172413810.62711864406779660.614173228346456710.603896103896103930.6093750.572413793103448310.613707165109034230.640506329113924020.632558139534883710.572649572649572610.484076433121019110.22093023255813954

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCT

    Fraction of Published Impact Evaluations that are RCT1981-19901991-20002001-20052006-today0.846153846153846150.7405063291139240.644808743169398960.58885163453478628

    Publication Date

    Number of Published RCTs1981-19901991-20002001-20052006-today111172361405

    Figure 1: Number of Published RCTs

    Number of Published RCTs1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201211000212223158919919212330275154747893117166197253272

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCTs

    Fraction of Published Impact Evaluations that are RCT1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201511000110.666666666666666631110.50.833333333333333370.80.818181818181818230.950.529411764705882360.826086956521739140.60.741935483870967750.638297872340425560.60.739130434782608650.620689655172413810.62711864406779660.614173228346456710.603896103896103930.6093750.572413793103448310.613707165109034230.640506329113924020.632558139534883710.572649572649572610.484076433121019110.22093023255813954

    Publication Year

    Figure 1: Fraction of Published Impact Evaluations that are RCT

    Fraction of Published Impact Evaluations that are RCT1981-19901991-20002001-20052006-today0.846153846153846150.7405063291139240.644808743169398960.58885163453478628

    Publication Date

    Number of Published RCTs1981-19901991-20002001-20052006-today111172361405

    Figure 1: Number of Published RCTs

    Number of Published RCTs1981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201211000212223158919919212330275154747893117166197253272

    Publication Year

    3iePaper

    SectorDifference-in-DifferenceInstrumental VariablesRCTRegression Discontinuity DesignPSM or OMMNotesDifferences in DifferencesInstrumental VariablesRCTRegression DiscontinuityPropensity Score Matching, or Other Matching Method

    Agriculture and rural development32.00%21.00%20.50%0.00%43.80%16.70%8.30%66.40%2.40%16.10%

    Economic policy43.80%31.30%0.00%6.30%37.50%

    Education20.90%10.90%58.30%6.30%17.70%

    Energy35.70%35.70%0.00%0.00%57.10%

    Environment and disaster management27.60%22.40%30.30%2.60%34.20%

    Finance29.80%17.70%41.10%0.00%24.20%

    Health, Nutrition and Population9.50%4.40%83.20%0.70%6.50%

    Information and communications technology25.40%3.20%66.70%3.20%20.60%

    Private sector development36.50%19.10%26.10%7.00%33.90%

    Public sector management31.10%23.00%44.60%5.40%16.20%

    Social protection31.40%12.30%40.80%6.20%34.30%

    Transportation55.60%11.10%22.20%11.10%22.20%

    Urban development36.80%15.80%15.80%5.30%36.80%

    Water and sanitation13.80%5.30%72.30%0.00%17.00%s

    Total16.70%8.30%66.40%Source: Drew B. Cameron , Anjini Mishra , Annette N. Brown "The growth of impact evaluation for international development: how much have we learned?" Journal of Development Effectiveness Vol. 8, Iss. 1, 20162.40%16.10%Source: Drew B. Cameron , Anjini Mishra , Annette N. Brown "The growth of impact evaluation for international development: how much have we learned?" Journal of Development Effectiveness Vol. 8, Iss. 1, 2016

    Source: Drew B. Cameron , Anjini Mishra , Annette N. Brown "The growth of impact evaluation for international development: how much have we learned?" Journal of Development Effectiveness Vol. 8, Iss. 1, 2016

    Figure 2: Evaluations by Type

    Differences in DifferencesInstrumental VariablesRCTRegression DiscontinuityPropensity Score Matching, or Other Matching Method0.167000000000000018.3000000000000004E-20.664000000000000032.4E-20.161Differences in DifferencesInstrumental VariablesRCTRegression DiscontinuityPropensity Score Matching, or Other Matching Method0

    Aidgrade

    YearPercent RCTs out of TotalPercent RCTs in EconPercent RCTs in Other FieldsTotal Number of EvaluationsTotal # of Econ EvaluationsTotal # of Other EvaluationsTotal # of RCTsTotal # of RCTs (Econ)Total # of RCTs (other)YearPercent RCTs in EconPercent RCTS in Other FieldsNon-RCTs

    19821000100101101198201000

    19891000100101101198901000

    19901000100202202199001000

    19911000100101101199101000

    199250050202101199205050

    19931000100101101199301000

    19951000100101101199501000

    19961000100404404199601000

    19971000100202202199701000

    19981000100707707199801000

    1999100100100321321199966.666666666733.33333333330

    20001000100303303200001000

    200188.8888950100927817200111.111111111177.777777777811.1111111111

    200266.666665075624413200216.66666666675033.3333333333

    20039066.6666610010379272003207010

    200458.3333344.444441001293743200433.33333333332541.6666666667

    20056033.333331005323122005204040

    200658.3333328.571431001275725200616.666666666741.666666666741.6666666667

    200762.525100844514200712.55037.5

    200856.2536.363641001611594520082531.2543.75

    200947.3684237.510019163963200931.578947368415.789473684252.6315789474

    20104018.1818210015114624201013.333333333326.666666666760

    20115038.88889100221841174201131.818181818218.181818181850

    201272.7272766.666661001192862201254.545454545518.181818181827.2727272727

    201386.6666684.615391001513113111201373.33333333336.666666666720

    2014100100440440201410000

    Figure 3A. Aidgrade.org Evaluations

    Total Number of Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114273396101251281619152211154Total # of Econ Evaluations198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320140000000000202239374111611189134Total # of Other Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114271374732545344210

    Figure 3B: Aidgrade.org Evaluations By Type

    Percent RCTs out of Total198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010088.88889000000000466.6666599999999939058.3333299999999976058.33332999999999762.556.2547.36842405072.72727000000000486.666659999999993100Percent RCTs in Econ1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201400000000001000505066.66665999999999344.4444433.33332999999999728.5714299999999992536.36363999999999737.518.18181999999999838.88889000000000466.66665999999999384.615390000000005100Percent RCTs in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010010075100100100100100100100100100100100

    Figure 3. Aidgrade.org Evaluations by Type

    Percent RCTs in Econ19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000000000066.666666666666657011.11111111111111116.6666666666666642033.3333333333333292016.66666666666666412.52531.57894736842105113.33333333333333431.81818181818181754.5454545454545473.333333333333329100Percent RCTS in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010033.33333333333332910077.7777777777777865070254041.6666666666666715031.2515.78947368421052626.66666666666666818.18181818181818318.1818181818181836.6666666666666670Non-RCTs19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000050000000011.111111111111133.3333333333333431041.6666666666666714041.66666666666666437.543.7552.631578947368425605027.27272727272728200

    Figure 3A. Aidgrade.org Evaluations

    Total Number of Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114273396101251281619152211154Total # of Econ Evaluations198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320140000000000202239374111611189134Total # of Other Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114271374732545344210

    Figure 3B: Aidgrade.org Evaluations By Type

    Percent RCTs out of Total198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010088.88889000000000466.6666599999999939058.3333299999999976058.33332999999999762.556.2547.36842405072.72727000000000486.666659999999993100Percent RCTs in Econ1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201400000000001000505066.66665999999999344.4444433.33332999999999728.5714299999999992536.36363999999999737.518.18181999999999838.88889000000000466.66665999999999384.615390000000005100Percent RCTs in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010010075100100100100100100100100100100100

    Figure 3. Aidgrade.org Evaluations by Type

    Percent RCTs in Econ19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000000000066.666666666666657011.11111111111111116.6666666666666642033.3333333333333292016.66666666666666412.52531.57894736842105113.33333333333333431.81818181818181754.5454545454545473.333333333333329100Percent RCTS in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010033.33333333333332910077.7777777777777865070254041.6666666666666715031.2515.78947368421052626.66666666666666818.18181818181818318.1818181818181836.6666666666666670Non-RCTs19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000050000000011.111111111111133.3333333333333431041.6666666666666714041.66666666666666437.543.7552.631578947368425605027.27272727272728200

    Figure 3A. Aidgrade.org Evaluations

    Total Number of Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114273396101251281619152211154Total # of Econ Evaluations198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320140000000000202239374111611189134Total # of Other Evaluations1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201411212114271374732545344210

    Figure 3B: Aidgrade.org Evaluations By Type

    Percent RCTs out of Total198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010088.88889000000000466.6666599999999939058.3333299999999976058.33332999999999762.556.2547.36842405072.72727000000000486.666659999999993100Percent RCTs in Econ1982198919901991199219931995199619971998199920002001200220032004200520062007200820092010201120122013201400000000001000505066.66665999999999344.4444433.33332999999999728.5714299999999992536.36363999999999737.518.18181999999999838.88889000000000466.66665999999999384.615390000000005100Percent RCTs in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010010010010075100100100100100100100100100100100

    Figure 3. Aidgrade.org Evaluations by Type

    Percent RCTs in Econ19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000000000066.666666666666657011.11111111111111116.6666666666666642033.3333333333333292016.66666666666666412.52531.57894736842105113.33333333333333431.81818181818181754.5454545454545473.333333333333329100Percent RCTS in Other Fields198219891990199119921993199519961997199819992000200120022003200420052006200720082009201020112012201320141001001001005010010010010010033.33333333333332910077.7777777777777865070254041.6666666666666715031.2515.78947368421052626.66666666666666818.18181818181818318.1818181818181836.6666666666666670Non-RCTs19821989199019911992199319951996199719981999200020012002200320042005200620072008200920102011201220132014000050000000011.111111111111133.3333333333333431041.6666666666666714041.66666666666666437.543.7552.631578947368425605027.27272727272728200

    BREAD Affiliates

    Total Number of Affiliates & Fellows# with some RCTs# mostly RCTs

    1658662Year of PhD# with some RCTs# mostly RCTs# of Affiliates in yearPercent of Affiliates doing some RCT

    1980 or earlier321225%

    1981-1990962733%

    Number of BREAD Affiliates who do RCTs1991-200015133444%

    Year of PhD# with some RCTs# mostly RCTs# of Affiliates in yearPercent of Affiliates doing some RCT2001-200521154151%

    19620010%2006-today38265767%

    19660030%

    19720010%

    1973111100%

    1974101100%

    19750020%

    19760010%

    19770010%

    1979111100%

    198110333%

    198221367%

    19830020%

    19840010%

    198511333%

    198610250%

    19870020%

    198822633%

    198922450%

    19900010%

    19910010%

    199222633%

    19930010%

    1994111100%

    19950030%

    199610333%

    19970010%

    199855771%

    199932650%

    200033560%

    200142757%

    200222450%

    2003757100%

    200444850%

    2005421040%

    2006861080%

    200765875%

    200832475%

    200954956%

    201032560%

    2011521050%

    201264875%

    201321367%

    Total8662

    *Total Number of Fellows and Affiliates is 165

    Total Number of Some RCTTotal Number of Mainly RCT

    8662

    Figure 4. Fraction of BREAD Affiliates & Fellows with 1 or more RCTs

    Percent of Affiliates doing some RCT1980 or earlier1981-19901991-20002001-20052006-today0.250.333333333333333310.441176470588235280.512195121951219520.66666666666666663

    PhD Year

    BREAD Conf Graph

    Row LabelsSum of Total # of PapersSum of Total # of RCTs

    2003144

    2004122

    2005121

    2006132

    2007143

    2008205

    2009154

    2010138

    2011145

    20122211

    2013209

    2014156

    2015146

    201671

    Grand Total20567

    YearTotal # of PapersTotal # of RCTs% of Papers using a RCT

    200314429%

    200412217%

    20051218%

    200613215%

    200714321%

    200820525%

    200915427%

    201013862%

    201114536%

    2012221150%

    201320945%

    201415640%

    201514643%

    20167229%

    Figure 5. Percent of BREAD Concerence Papers using a RCT

    % of Papers using a RCT

    200320042005200620072008200920102011201220132014201520160.28571428571428570.166666666666666668.3333333333333329E-20.153846153846153850.214285714285714270.250.266666666666666660.615384615384615420.357142857142857150.50.450.40.428571428571428550.2857142857142857

    Year

    Top Journals

    Info Needed:How many development papers, how many RCTs

    MIT Lib?199020002015

    AERYesYesYesYes

    QJE1 year lagYesYesYes

    JPEYesYes

    Restud

    Econometrica

    Number of Development Papers

    Year

    Journal Title201520001990

    AER

    QJE

    JPE

    Restud

    Econometrica

    Number of RCTs

    Year

    Journal Title201520001990

    AER

    QJE

    JPE

    Restud

    Econometrica

    Table 6: Papers in Top Journals

    JournalYearTotal # of Papers# of Development Papers# of which are RCTs

    AER2015101154

    20004860

    19905720

    QJE20154011

    20004350

    19905230

    JPE20153643

    20005170

    19906590

    Restud20154872

    20003630

    19904010

    Econometrica20154650

    20003700

    19906420

    * These include papers in the following journals: AER, QJE, JPE, Restud, Econometrica

    Table 2: Papers in Top 5 Journals

    YearTotal # of Papers# of Development Papers# of which are RCTs

    20152713210

    2000215210

    1990278170

    * These include papers in the following journals: AER, QJE, JPE, Restud, Econometrica

    https://www.aeaweb.org/journals/aer/issueshttp://qje.oxfordjournals.org/content/by/yearhttp://www.journals.uchicago.edu/toc/jpe/currenthttp://www.restud.com/accepted-papers/http://www.econometricsociety.org/publications/econometrica/browse

    NEUDC Conference

    Info Needed:How many RCTs by year

    Host UniversityYearTotal # of PapersTotal # of RCTsPercent RCTRounded

    Brown20152204018.181818181818.2%

    BU20142013617.910447761217.9%

    Harvard 20132024924.257425742624.3%

    Dartmouth20121692715.976331360916.0%

    Table 3: NEUDC Conference Papers

    YearTotal # of RCTsPercent RCTs

    20154018.2%

    20143617.9%

    20134924.3%

    20122716.0%

  • Many sectors, many countries

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 6

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 7

  • Focus on Identification across the board! The key advantage of RCT was perceived to be a clear

    identification advantage

    With RCT, since those who received a treatment are randomly selected in a relevant sample, any difference between treatment and control must be due to the treatment

    Most criticisms of experiment also focus on limits to identification (imperfect randomization, attrition, etc. ) or things that are not identified even by randomized trials (distribution of treatment effects, effects elsewhere).

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 8

  • Focus on Identification across the board! Before the explosion of RCT in development, a literature

    on RCT in labor and public finance has thought of other ways to identify causal effects

    In development economics, there was a joint development of the two literatures (natural experiment and RCT), which has made both literatures stronger, and perhaps less different than we initially thought they would be: Natural experiments think of RCT as a natural benchmark (not just

    an hypothetical gold standard). Development of methods to go beyond simple comparison of

    treatment and control in experiments, and richer designs

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 9

  • Encouragement design

    Difference in take up caused by encouragement

    People who take up program

  • Focus on Identification across the board! Before the explosion of RCT in development, a literature on

    RCT in labor and public finance has thought of other ways to identify causal effects

    In development economics, there was a joint development of the two literatures (natural experiment and RCT), which has made both literatures stronger, and perhaps less different than we initially thought they would be: Natural experiments think of RCT as a natural benchmark (not just an

    hypothetical gold standard). Extremely well identified non randomized studies.

    Development of methods to go beyond simple comparison of treatment and control in experiments, and richer designs

    Ultimately, the advantage of RCT in terms of identification is a matter of degree, rather than a fundamental difference.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 11

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 12

  • External Validity

    Will results obtained somewhere generalize elsewhere?

    A frequent criticism of RCT is that they dont guarantee external validity

    Which is quite right, but it is not like they are less externally valid

    And because they are internally valid, and because you can control where they will take place: compared across contexts. they can be purposefully run in different contexts Prediction can be made of what the effects of related programs

    could be.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 13

  • Bayesian Hierarchical Modelling of all the MF results : Profits Meager (2015)

  • Bayesian Hierarchical Modeling-- Meta analysis (consumption)

    15

  • Example 2: Targeting the Ultra Poor Program: Coordinated evaluation in several countries

    Beneficiary

    Productive asset transfer

    Health

    Consumption support Technical skills training

    Home visits

    Savings

    Banerjee et al, 2015

    16

    http://www.sciencemag.org/content/348/6236/1260799.full

  • Country by country results: Assets

    Banerjee et al, 2015

    -0.1

    0.2

    0.5

    0.8Endline 1 Endline 2

    Ass

    et c

    hang

    e (s

    tand

    ard

    dev

    iatio

    ns)

    17

    http://www.sciencemag.org/content/348/6236/1260799.full

  • Country by country results: Consumption

    -5%

    0%

    5%

    10%

    15%

    20%

    Endline 1 Endline 2

    % C

    hang

    e in

    per

    ca

    pita

    con

    sum

    ptio

    n

    18

  • Structured Speculation

    Ultimately, if the results are similar it is nice, but if they are different the ex-post analysis is speculative.

    Banerjee, Chassang, Snowberg (2016) propose to be explicit about such speculation, and that researchers should predict what the effect may be for other interventions, or in other contexts.

    This can then motivate running such experiments, and guesses can be falsified.

    Example: Dupas (2014)Effect of short run subsidies on long run adoption depend on the timing of costs and benefits, and how quickly uncertainty about them is resolved: this allows her to classify the goods.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 19

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 20

  • Observing unobservables

    Some things simply cannot be observed in the wild, with naturally occurring variation

    Negative income tax experiment was designed as an experiment to separate income and substitution effects

    Many experiments in development are designed likewise to capture such effects: Karlan Zinman Observing Unobservables Cohen Dupas and Ashraf Dupas Shapiro: selection and treatment

    effect of prices. Bertrand et al. Corruption in driving licences in Delhi.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 21

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 22

  • Innovative data collection

    Innovative data collection does not require an experiment.

    But experiments have two features which have motivated creativity in measurement We know precisely what we are trying to measure: payoff to the

    person who is designing the questionnaire We know that there will likely be enough power to measure such

    effects

    As a result, lots of innovation in measurement: Borrowing from other fields : psychology, political science,

    agriculture, web scraping, wearable techology, Inventing new methods: e.g. Olken 2007

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 23

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 24

  • Iterative experimentations

    Some great natural experiment leave us with some unanswered questions: Why are elite school not working for the marginal child? Why are (some) charter school working so well?

    One other advantage of experiments is that one is never stuck with one particular surprising answer: you can continue to experiment in the same setting till you have some clarity.

    Example: Duflo, Kremer, Robison multi-year work on fertilizer. People dont use fertilizer, even though it is profitable One set of experiment on financing One set on learning and social learning.

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 25

  • Why have RCT had so much impact?

    Focus on identification of causal effects (across the board)

    Assessing External Validity

    Observing Unobservables

    Data collection

    Iterative Experimentation

    Unpack impacts

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 26

  • Unpack impacts

    This is a related point, but more narrowly focused on policy design.

    There are many many possible ways to design a particular programs

    Usually, one version is tried out

    But if it works what was essential? Effort to unpack Conditional Cash Transfer Example of doing everything at once: Raskin program, Indonesia

    Many people do not receive the rice they are eligible for, or over pay Would transparency help?

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 27

  • They distribute 4 version of a cards to eligible villagers in 378 villages, randomly chosen out of 572

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 28

  • Other sources of variation and results

    They also varied: Public (common) knowledge of the program Fraction of people who get the phyisical card

    Results: Making the card distribution public knowledge makes it more

    effective The physical card matter: information (in the form of list) alone is not

    sufficient (Perception of) accountability does not seem to make much of a

    difference.

    The government decided to scale the version of the card with most info and the list to 65 million beneficiaries!

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 29

  • What has been the policy impacts of RCTs? Is the Raskin Case unique or unusual?

    A study designed by researchers with several treatments and an underlying economic model, destined to be published in a to academic journal

    but that still had large policy impact

    Some have argued that the research impact of RCT has potentially come at the expense of real-world impact:

    Researchers and policy makers interests may diverge Research slow down the process of iteration

    Evidence Out of 700 projects on going or completed on the J-PAL site, there are

    only 9 story of scale up or policy impact. However, this is not a census of J-PAL study (or of RCT). Story selected for

    high impacts : the sum of people reached is about 200 million.

    30

  • Over 200 million people reached through scale-ups of programs evaluated by J-PAL researchers

    ProgramPeople

    Reached (mn)

    School-based Deworming 95

    Raskin: Subsidized Rice (Indonesia) 66

    Teaching at the Right Level (India) 34

    Generasi: Conditional Community Block Grants (Indonesia)

    6

    Chlorine Dispensers for Safe Water (East Africa) 0.5

    Free Insecticidal Bednets Policy influence

    Police Skills Training Policy influence

    TOTAL 202 mn31

  • Getting a sense of overall influence is difficult Returns to R&D highly skewed.

    - Most scholarly articles are never cited- Most start-ups fail- Venture capitalists get most of their revenue from a small number of

    investments

    Still huge payoffs to R&D

    Ideas take a long time to percolate through the system, and many RCT are fairly recent

    Many RCT find that things DO NOT work as well as hoped (microcredit, smokeless stoves)

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 32

  • RCTs and real world impact: The case study of DIV

    To solve the census problem, we focus on one case study: USAID DIV.

    USAIDs Development Innovation Ventures (DIV) offers an opportunity to compare outcomes in selected sample of award winners:

    DIV has open approach: no top-down restriction on sector, strategy Grantees include social entrepreneurs, NGOs and development

    researchers

    Staged financing (Pilot $150,000; Testing $1,500,000; Transition to Scale $15,000,000)

    Openness on scaling strategy (Commercial, public-sector or hybrid funding

    Emphasis on cost effectiveness; Attention to management team, external commitments, but no

    rigid litmus test

    33

  • Methods

    Coverage: 43 DIV awards made from 2010-2012; total value $17.3m

    Here just examine reach, the estimated number of people exposed to the original and adapted versions of the innovation, after the DIV funding.

    Do not compare measures of the size of impact per beneficiary

    Do not estimate the likelihood that reach will be sustained or increased in the future

    Does not assume the credit to further expansion all goes to DIV

    One (of several) components of social return calculation

    Specifically, we focus on number of awards reaching more than 100k or more than 1 M people.

    34

  • DIV-Supported several Innovations Reaching > 100K People5 INNOVATIONS REACHED MORE THAN 1 MILLION PEOPLE Voter Report Cards (2

    awards)

    Election Monitoring Technology

    Consumer Action and Matatu Safety

    Digital Attendance Monitoring

    Dispensers for Safe Water

    6 INNOVATIONS REACHED MORE THAN 100K AND LESS THAN ONE MILLION PEOPLE Scaling CommCare for

    Community Health Workers (2 awards)

    d.light Innovative Financing for Solar Systems

    Sustainable Distribution for Improved Cookstoves

    Recruiting and Compensating Community Health Workers

    VisionSpring BoPtical Care

    Renewable Powered Microgrids for Rural Lighting

    35

  • High reach of innovations with RCTs/involvement of development economics researchers 24 awards had RCT/researcher involvement, of which:

    42% (10 awards) reached more than 100,000 people 25% (6 awards) reached more than one million people

    19 awards did not have RCT, of which: 16% (3 awards) reached more than 100,000 people No awards have yet reached more than one million

    people

    Overall DIV numbers favorable relative to many impact investors Arbitrage opportunity from openness to multiple type s of

    innovation? Discipline of evidence useful?

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 36

  • While early stage awards have low probability of attaining reach, they have high expected reach per dollar spent

    Award StageNumber

    of Awards

    Award Value

    Fraction Reaching More than

    100,000 people

    Fraction Reaching More than 1,000,000 people

    People Reached

    Expenditure per Person Reached

    Stage 1 (< $100,000) 24 $2,353,136 17% (4/24) 8% (2/24) 6,723,733 $0.35

    Stage 2 (

  • Pathways to reach

    DIV awards for innovations with RCTs reached > 100,000 people through a variety of partnerships: Country governments (e.g. Zambia CHW recruiting, India

    biometric monitoring) Donors (e.g. cookstoves in Ethiopia and Sudan) NGOs/Social Enterprises (e.g. Dispensers for Safe Water) Private sector firms (e.g. newspapers, banks, insurance

    companies, Qualcomm, Safaricom) Three of five innovations reaching more than one million people

    had earlier RCTs demonstrating impact, potential for cost effectiveness: researcher/project selection?

    38

  • Why might projects involving RCT be more likely to have future reach? Convincing force of evidence [most projects that do not

    involve RCT try to scale through retails sale, which is harder]

    Nothing to do with the RCT per se: Close involvement of researchers help ideas grounded in basic

    science percolate research (like in biotech). In particular: Influence of behavioral economics/information:

    focus on low cost interventions , which are more likely to scale

    Selection of good projects [willing to do an RCT]

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 39

  • Conclusion

    The projects evaluated by RCT that then have reached many people tend to be low-cost, well defined, simple.

    So what has made RCT useful as a research tool (ability to iterate, zero-down to component, test a theory) is exactly what has turned out to make them policy relevant: details matter tremendously, and RCT tend to get the details right.

    An alternative pathway: BRAC, PROGRESA. Complexedinterventions replicated in many contexts.

    And a third one: innovation within existing governments and institutions.

    Tamil Nadu innovation Fund, Nudge Unit Gujarat Pollution Control Board

    J-PAL | THE ROLE OF RANDOMIZED EVALUATIONS IN INFORMING POLICY 40

  • Conclusion

    For RCT to move from the large research impacts to large policy impact, we need a range of complementary institutions: Meta-analysis Review article Review panels Registry of Experiments has started and is successful (706 studies as of

    June 8), Appropriate support and experiment to support the learning

    needed to move from successful pilot to policy at scale Iterations to design scalable (robust) versions and measure their

    effects Equilibrium effects Political economy /industrial organization of implementation

    J-PAL | THE IMPACT OF RCT ON RESEARCH AND POLICY 41

    Randomized Controlled Trials, Development Economics and Policy Making in Developing CountriesRandomized controlled trials have greatly expanded in the last two decades Cameron et al (2016): RCT in developmentBREAD Affiliates doing RCT Top Journals Many sectors, many countriesWhy have RCT had so much impact? Focus on Identification across the board!Focus on Identification across the board!Encouragement designFocus on Identification across the board!Why have RCT had so much impact? External ValidityBayesian Hierarchical Modelling of all the MF results : Profits Meager (2015)Bayesian Hierarchical Modeling-- Meta analysis (consumption)Example 2: Targeting the Ultra Poor Program: Coordinated evaluation in several countries Country by country results: Assets Country by country results: ConsumptionStructured Speculation Why have RCT had so much impact? Observing unobservables Why have RCT had so much impact? Innovative data collection Why have RCT had so much impact? Iterative experimentationsWhy have RCT had so much impact? Unpack impactsThey distribute 4 version of a cards to eligible villagers in 378 villages, randomly chosen out of 572 Other sources of variation and resultsWhat has been the policy impacts of RCTs? Over 200 million people reached through scale-ups of programs evaluated by J-PAL researchersGetting a sense of overall influence is difficultRCTs and real world impact: The case study of DIVMethodsDIV-Supported several Innovations Reaching > 100K PeopleHigh reach of innovations with RCTs/involvement of development economics researchers While early stage awards have low probability of attaining reach, they have high expected reach per dollar spentPathways to reach Why might projects involving RCT be more likely to have future reach?ConclusionConclusion