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Was There a Riverside Miracle? A Hierarchical Framework for Evaluating Programs with Grouped Data

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  • Dehejia, Rajeev H

Abstract

This article discusses the evaluation of programs implemented at multiple sites. Two frequently used methods are pooling the data or using fixed effects (an extreme version of which estimates separate models for each site). The former approach ignores site effects. The latter incorporates site effects but lacks a framework for predicting the impact of subsequent implementations of the program (e.g., would a new implementation resemble Riverside?). I present a hierarchical model that lies between these two extremes. Using data from the Greater Avenues for Independence demonstration, I demonstrate that the model captures much of the site-to-site variation of the treatment effects but has less uncertainty than estimating the treatment effect separately for each site. I also show that when predictive uncertainty is ignored, the treatment impact for the Riverside sites is significant, but when predictive uncertainty is considered, the impact for these sites is insignificant. Finally, I demonstrate that the model extrapolates site effects with reasonable accuracy when the site being predicted does not differ substantially from the sites already observed. For example, the San Diego treatment effects could have been predicted based on their site characteristics, but the Riverside effects are consistently underpredicted.

Suggested Citation

  • Dehejia, Rajeev H, 2003. "Was There a Riverside Miracle? A Hierarchical Framework for Evaluating Programs with Grouped Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 1-11, January.
  • Handle: RePEc:bes:jnlbes:v:21:y:2003:i:1:p:1-11
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    Cited by:

    1. Rajeev Dehejia & Cristian Pop-Eleches & Cyrus Samii, 2021. "From Local to Global: External Validity in a Fertility Natural Experiment," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 39(1), pages 217-243, January.
    2. Rajeev Dehejia, 2013. "The Porous Dialectic: Experimental and Non-Experimental Methods in Development Economics," WIDER Working Paper Series wp-2013-011, World Institute for Development Economic Research (UNU-WIDER).
    3. Dehejia, Rajeev, 2013. "The Porous Dialectic: Experimental and Non-Experimental Methods in Development Economics," WIDER Working Paper Series 011, World Institute for Development Economic Research (UNU-WIDER).
    4. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    5. V. Joseph Hotz & Guido W. Imbens & Jacob A. Klerman, 2006. "Evaluating the Differential Effects of Alternative Welfare-to-Work Training Components: A Reanalysis of the California GAIN Program," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 521-566, July.
    6. Carlos A. Flores & Oscar A. Mitnik, 2013. "Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1691-1707, December.
    7. Cyrille Kamdem, 2016. "Collective Marketing and Cocoa Farmer's Price in Cameroon," Economics Bulletin, AccessEcon, vol. 36(4), pages 2535-2555.
    8. Meager, Rachael, 2019. "Understanding the average impact of microcredit expansions: a Bayesian hierarchical analysis of seven randomized experiments," LSE Research Online Documents on Economics 88190, London School of Economics and Political Science, LSE Library.
    9. Takuya Ishihara & Toru Kitagawa, 2021. "Evidence Aggregation for Treatment Choice," Papers 2108.06473, arXiv.org.
    10. Hadj Fraj, Salma & Hamdaoui, Mekki & Maktouf, Samir, 2018. "Governance and economic growth: The role of the exchange rate regime," International Economics, Elsevier, vol. 156(C), pages 326-364.
    11. Richard Dorsett & Philip K. Robins, 2013. "A Multilevel Analysis of the Impacts of Services Provided by the U.K. Employment Retention and Advancement Demonstration," Evaluation Review, , vol. 37(2), pages 63-108, April.
    12. Hunt Allcott, 2012. "Site Selection Bias in Program Evaluation," NBER Working Papers 18373, National Bureau of Economic Research, Inc.
    13. Arpino, Bruno & Mealli, Fabrizia, 2011. "The specification of the propensity score in multilevel observational studies," Computational Statistics & Data Analysis, Elsevier, vol. 55(4), pages 1770-1780, April.
    14. Dehejia Rajeev, 2015. "Experimental and Non-Experimental Methods in Development Economics: A Porous Dialectic," Journal of Globalization and Development, De Gruyter, vol. 6(1), pages 47-69, June.
    15. Benjamin Lu & Eli Ben-Michael & Avi Feller & Luke Miratrix, 2023. "Is It Who You Are or Where You Are? Accounting for Compositional Differences in Cross-Site Treatment Effect Variation," Journal of Educational and Behavioral Statistics, , vol. 48(4), pages 420-453, August.
    16. Donald M. Pianto & Sergei Soares, 2004. "Use Of Survey Design For The Evaluation Of Social Programs: The Pnad And Peti," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 133, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Meager, Rachael, 2022. "Aggregating distributional treatment effects: a Bayesian hierarchical analysis of the microcredit literature," LSE Research Online Documents on Economics 115559, London School of Economics and Political Science, LSE Library.
    18. Meager, Rachael & Sturdy, Jennifer, 2017. "Aggregating Distributional Treatment Effects: A Bayesian Hierarchical Analysis of the Microcredit Literature," MetaArXiv 7tkvm, Center for Open Science.
    19. Henderson, Daniel J. & Maasoumi, Esfandiar, 2012. "Searching for Rehabilitation in Nonparametric Regression Models with Exogenous Treatment Assignment," IZA Discussion Papers 6874, Institute of Labor Economics (IZA).
    20. Judith M. Gueron & Gayle Hamilton, 2023. "Using Multi-Arm Designs to Test Operating Welfare-to-Work Programs," Evaluation Review, , vol. 47(1), pages 71-103, February.

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