Experimental Methods and the Welfare Evaluation of Policy Lotteries
AbstractPolicies impose lotteries of outcomes on individuals, since we never know exactly what the effects of the policy will be. In order to evaluate alternative policies, we therefore need to make some assumptions about individual preferences, even before social welfare functions are applied. Instead of making a priori assumptions about those preferences that are likely to be wrong, there are two broad ways in which experimental methods are used to evaluate policy. One is to use experiments to estimate individual preferences, valuations and beliefs, and use those estimates as priors in the evaluation of policy. The other approach is to undertake deliberate randomization, or exploit accidental or natural randomization, to infer the effects of policy. The strengths and weaknesses of these approaches are reviewed, and their complementarities identified.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University in its series Experimental Economics Center Working Paper Series with number 2011-08.
Date of creation: Apr 2011
Date of revision:
Other versions of this item:
- Glenn W. Harrison, 2011. "Experimental methods and the welfare evaluation of policy lotteries," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(3), pages 335-360, August.
- NEP-ALL-2011-04-30 (All new papers)
- NEP-CBE-2011-04-30 (Cognitive & Behavioural Economics)
- NEP-EXP-2011-04-30 (Experimental Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Charness, Gary & Viceisza, Angelino, 2011.
"Comprehension and risk elicitation in the field: Evidence from rural Senegal,"
IFPRI discussion papers
1135, International Food Policy Research Institute (IFPRI).
- Charness, Gary & Viceisza, Angelino, 2012. "Comprehension and Risk Elicitation in the Field: Evidence from Rural Senegal," University of California at Santa Barbara, Economics Working Paper Series qt5512d150, Department of Economics, UC Santa Barbara.
- Ihli, Hanna Julia & Chiputwa, Brian & Musshoff, Oliver, 2013. "Do Changing Probabilities or Payoffs in Lottery-Choice Experiments Matter? Evidence from Rural Uganda," Discussion Papers 158146, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J. Todd Swarthout).
If references are entirely missing, you can add them using this form.