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Knowing What Works The Case for Rigorous Program Evaluation

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Author Info
Christoph M. Schmidt () (University of Heidelberg, CEPR, London and IZA, Bonn, Germany)

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Abstract

Since interventions by the public sector generally commit substantial societal resources, the evaluation of effects and costs of policy interventions is imperative. This paper outlines why program evaluation should follow well-respected scientific standards and why it should be performed by independent researchers. Moreover, it outlines the three fundamental elements of evaluation research, the choice of the appropriate outcome measure, the assessment of the direct and indirect cost associated with the intervention, and the attribution of effects to underlying causes. The paper proceeds to outline in intuitive terms that the construction of a credible counterfactual situation is at the heart of the formal statistical evaluation problem. It introduces several approaches, based on both experiments and on non-experimental data, that have been proposed in the literature to solve the evaluation problem, and illustrates them numerically.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp77.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 77.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 41 pages
Date of creation: Dec 1999
Date of revision:
Handle: RePEc:iza:izadps:dp77

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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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Related research
Keywords: Experiments; observational studies; counterfactual;

Other versions of this item:

Find related papers by JEL classification:
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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  1. Eva Reinowski & Birgit Schultz & Jürgen Wiemers, 2003. "Evaluation von Maßnahmen der aktiven Arbeitsmarktpolitik mit Hilfe eines iterativen Matching-Algorithmus Eine Fallstudie über langzeitarbeitslose Maßnahmeteilnehmer in Sachsen," IWH Discussion Papers 173, Halle Institute for Economic Research. [Downloadable!]
  2. Christoph M. Schmidt, 2000. "Arbeitspolitische Massnahmen und ihre Evaluierung: eine Bestandsaufnahme," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(3), pages 425-437.
  3. Fertig, Michael & Schmidt, Christoph M, 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," CEPR Discussion Papers 2803, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. John P. Haisken-DeNew & Matthias Vorell, 2009. "Killing them with Kindness: Negative Distributional Externalities of Increasing UI Benefits," Ruhr Economic Papers 0121, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  5. Jeff Borland & Yi-Ping Tseng & Roger Wilkins, 2005. "Experimental and Quasi-Experimental Methods of Microeconomic Program and Policy Evaluation," Melbourne Institute Working Paper Series wp2005n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  6. Jochen Kluve & Hartmut Lehmann & Christoph M. Schmidt, 2002. "Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples," William Davidson Institute Working Papers Series 447, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  7. John P. Haisken-DeNew & Christoph M. Schmidt, 2009. "Nickel and Dimed German Style: The Working Poor in Germany," Ruhr Economic Papers 0122, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  8. Eva Reinowski, 2004. "Mikroökonometrische Evaluation und das Selektionsproblem – Ein anwendungsorientierter Überblick über nichtparametrische Lösungsverfahren –," IWH Discussion Papers 200, Halle Institute for Economic Research. [Downloadable!]
  9. Frondel, Manuel & Schmidt, Christoph M., 2001. "Evaluating environmental programs : the perspective of modern evaluation research," ZEW Discussion Papers 01-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  10. Eva Reinowski & Birgit Schultz, 2006. "Microeconometric Evaluation of Selected ESF-funded ALMP-Programmes," IWH Discussion Papers 17-06, Halle Institute for Economic Research. [Downloadable!]
  11. Schmidt, Christoph M., 2000. "Arbeitsmarktpolitische Maßnahmen und ihre Evaluierung: eine Bestandsaufnahme," IZA Discussion Papers 207, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Takis Venetoklis, 2002. "Public Policy Evaluation: Introduction to Quantitative Methodologies," Research Reports 90, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  13. Czarnitzki, Dirk, 2001. "Die Auswirkung der Forschungs- und Technologiepolitik auf die Innovationsaktivitäten ostdeutscher Unternehmen," ZEW Discussion Papers 01-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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