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Experiments and Economic Development: Lessons from Field Labs in the Developing World

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Author Info
Juan Camilo Cardenas
Jeffrey P. Carpenter ()

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Abstract

Along with the traditional primitives of economic development (material preferences, technology, and endowments), there is a growing interest in exploring how psychological and sociological factores (e.g., bounded rationality, norms, or social preferences) also influence economic decisions, the evolution of institutions, and outcomes. Simultaneously, a vast literature has arisen arguing that economic experiments are important tools in identifying and quantifying the role of institutions, socialnorms and preferences on behavior and outcomes. Reflecting on our experience conducting experiments in the field over more than five years, we survey the growing literature at the intersection of these two research areas. Our review has four components. In the introduction we set the stage identifying a set of behavioral factors that seem to be central for understanding growth and economic development./ We then divide the existing literature in two piles: standard experiments conducted in the field and on how to econometrically identify sociological factors in experimental data. We conclude by suggesting topics for future research.

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Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0505.

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Length: 50 pages
Date of creation: May 2005
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Handle: RePEc:mdl:mdlpap:0505

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Related research
Keywords: experimental economics; behavioral economics; institutions; social preferences; poverty; development;

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Find related papers by JEL classification:
C9 - Mathematical and Quantitative Methods - - Design of Experiments
O1 - Economic Development, Technological Change, and Growth - - Economic Development

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Vivi Alatas & Lisa Cameron & Ananish Chaudhuri & Nisvan Erkal & Lata Gangadharan, 2006. "Gender and Corruption: Insights from an Experimental Analysis," Department of Economics - Working Papers Series 974, The University of Melbourne. [Downloadable!]
  2. René Fahr & Bernd Irlenbusch, 2008. "Identifying personality traits to enhance trust between organisations: an experimental approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 469-487. [Downloadable!]
  3. Galarza, Francisco, 2009. "Risk, Credit, and Insurance in Peru: Field Experimental Evidence," MPRA Paper 17833, University Library of Munich, Germany. [Downloadable!]
  4. L. Cameron & A. Chaudhuri & N. Erkal & L. Gangadharan, 2005. "Do Attitudes Towards Corruption Differ Across Cultures? Experimental Evidence from Australia, India, Indonesia andSingapore," Department of Economics - Working Papers Series 943, The University of Melbourne. [Downloadable!]
  5. Bauer, Michal & Chytilová, Julie, 2009. "The Impact of Education on the Subjective Discount Rate in Ugandan Villages," IZA Discussion Papers 4057, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Alice Nicole Sindzingre, 2007. "Poverty traps: a perspective from development economics," EconomiX Working Papers 2007-26, University of Paris West - Nanterre la Défense, EconomiX. [Downloadable!]
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