Working Paper: CEPR ID: DP7037
Authors: Abhijit Banerjee; Esther Duflo
Abstract: Randomized experiments have become a popular tool in development economics research, and have been the subject of a number of criticisms. This paper reviews the recent literature, and discusses the strengths and limitations of this approach in theory and in practice. We argue that the main virtue of randomized experiments is that, due to the close collaboration between researchers and implementers, they allow the estimation of parameters that it would not otherwise be possible to evaluate. We discuss the concerns that have been raised regarding experiments, and generally conclude that while they are real, they are often not specific to experiments. We conclude by discussing the relationship between theory and experiments.
Keywords: Development Economics; Randomized Experiment
JEL Codes: O16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| randomized experiments (C90) | estimate parameters (C51) |
| providing deworming treatments (I38) | reduces absenteeism (J22) |
| providing deworming treatments (I38) | educational outcomes (I26) |
| experiments (C90) | identify relative efficacy of educational inputs (I21) |
| providing textbooks vs hiring additional teachers (H52) | impacts of educational inputs (I21) |
| iterative nature of experimental research (C90) | dynamic learning (C69) |
| program adjustments (F32) | improved outcomes (I14) |