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Analysis of Cluster-Randomized Experiments: A Comparison of Alternative Estimation Approaches

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  • Green, Donald P.
  • Vavreck, Lynn

Abstract

Analysts of cluster-randomized field experiments have an array of estimation techniques to choose from. Using Monte Carlo simulation, we evaluate the properties of point estimates and standard errors (SEs) generated by ordinary least squares (OLS) as applied to both individual-level and cluster-level data. We also compare OLS to alternative random effects estimators, such as generalized least squares (GLS). Our simulations assess efficiency across a variety of scenarios involving varying sample sizes and numbers of clusters. Our results confirm that conventional OLS SEs are severely biased downward and that, for all estimators, gains in efficiency come mainly from increasing the number of clusters, not increasing the number of individuals within clusters. We find relatively minor differences across alternative estimation approaches, but GLS seems to enjoy a slight edge in terms of the efficiency of its point estimates and the accuracy of its SEs. We illustrate the application of alternative estimation approaches using a clustered experiment in which Rock the Vote TV advertisements were used to encourage young voters in 85 cable TV markets to vote in the 2004 presidential election.

Suggested Citation

  • Green, Donald P. & Vavreck, Lynn, 2008. "Analysis of Cluster-Randomized Experiments: A Comparison of Alternative Estimation Approaches," Political Analysis, Cambridge University Press, vol. 16(2), pages 138-152, April.
    • Handle: RePEc:cup:polals:v:16:y:2008:i:02:p:138-152_00
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    Cited by:

    1. Fangzhou Su & Peng Ding, 2021. "Model‐assisted analyses of cluster‐randomized experiments," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 83(5), pages 994-1015, November.
    2. Peter Z. Schochet, "undated". "Statistical Theory for the RCT-YES Software: Design-Based Causal Inference for RCTs," Mathematica Policy Research Reports a0c005c003c242308a92c02dc, Mathematica Policy Research.
    3. Rabie Mahssouni & Mohamed Noureddine Touijer & Mohamed Makhroute, 2022. "Employee Compensation, Training and Financial Performance during the COVID-19 Pandemic," JRFM, MDPI, vol. 15(12), pages 1-19, November.
    4. Beatrice Magistro, 2020. "Financial literacy and support for free trade in the UK," The World Economy, Wiley Blackwell, vol. 43(8), pages 2050-2069, August.
    5. Middleton Joel A. & Aronow Peter M., 2015. "Unbiased Estimation of the Average Treatment Effect in Cluster-Randomized Experiments," Statistics, Politics and Policy, De Gruyter, vol. 6(1-2), pages 39-75, December.
    6. Susanne Berger & Nathaniel Graham & Achim Zeileis, 2017. "Various Versatile Variances: An Object-Oriented Implementation of Clustered Covariances in R," Working Papers 2017-12, Faculty of Economics and Statistics, Universität Innsbruck.
    7. Odunayo Magret Olarewaju & Stephen Oseko Migiro & Mabutho Sibanda, 2017. "Effect of Agency Costs on Executive Compensation in South African Commercial Banks," Journal of Economics and Behavioral Studies, AMH International, vol. 9(4), pages 25-37.
    8. Aronow Peter M. & Middleton Joel A., 2013. "A Class of Unbiased Estimators of the Average Treatment Effect in Randomized Experiments," Journal of Causal Inference, De Gruyter, vol. 1(1), pages 135-154, June.
    9. Elizabeth Levy Paluck, 2010. "The Promising Integration of Qualitative Methods and Field Experiments," The ANNALS of the American Academy of Political and Social Science, , vol. 628(1), pages 59-71, March.
    10. von Hippel, Paul T. & Bellows, Laura & Osborne, Cynthia & Lincove, Jane Arnold & Mills, Nick, 2016. "Teacher quality differences between teacher preparation programs: How big? How reliable? Which programs are different?," Economics of Education Review, Elsevier, vol. 53(C), pages 31-45.
    11. Charlotte Cavaill, 2015. "Deservingness, Self-Interest and the Welfare State: Why Some Care More about Deservingness than Others and Why It Matters," LIS Working papers 652, LIS Cross-National Data Center in Luxembourg.
    12. Jeffrey Harden & Thomas Carsey, 2012. "Balancing constituency representation and party responsiveness in the US Senate: the conditioning effect of state ideological heterogeneity," Public Choice, Springer, vol. 150(1), pages 137-154, January.
    13. repec:rre:publsh:v:38:y:2008:i:2:p:251-69 is not listed on IDEAS
    14. Harden Jeffrey J., 2012. "Improving Statistical Inference with Clustered Data," Statistics, Politics and Policy, De Gruyter, vol. 3(1), pages 1-30, January.

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