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External Treatment Effects and Program Implementation Bias

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Tomas J. Philipson

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Abstract

This paper discusses the definition and identification of external treatment effects and experimental designs capable of detecting these effects. External effects occur when the outcome of a given individual is affected by the treatment assignments of other individuals. The paper argues that two-stage randomization schemes, which randomize allocation of treatments across communities and randomizes the treatments themselves within communities, are useful for identifying private and external treatment effects. The importance of external treatment effects are illustrated in the context of several health economics applications: the impact of R&D subsidies, smoking prevention programs for youth, and the evaluation of HIV-prevention programs currently taking place in Africa.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0250.

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Date of creation: Jan 2000
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Handle: RePEc:nbr:nberte:0250

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  1. Tor Jakob Klette & Jarle Møen & Zvi Griliches, 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconomic Evaluation Studies," NBER Working Papers 6947, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September. [Downloadable!] (restricted)
  3. Geoffard, P.Y. & Philipson, T., 1995. "Disease Eradication: Private vs. Public Vaccination," DELTA Working Papers 95-09, DELTA (Ecole normale supérieure).
  4. Richard Arnott & John Rowse, 1982. "Peer Group Effects and Educational Attainment," Working Papers 497, Queen's University, Department of Economics.
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  5. Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August. [Downloadable!] (restricted)
  6. James J. Heckman & Lance Lochner & Christopher Taber, 1999. "General Equilibrium Cost Benefit Analysis of Education and Tax Policies," NBER Working Papers 6881, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Chew, Soo Hong, 1983. "A Generalization of the Quasilinear Mean with Applications to the Measurement of Income Inequality and Decision Theory Resolving the Allais Paradox," Econometrica, Econometric Society, vol. 51(4), pages 1065-92, July. [Downloadable!] (restricted)
  8. Manski, Charles F, 1997. "The Mixing Problem in Programme Evaluation," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 537-53, October. [Downloadable!] (restricted)
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  1. Edwin Leuven & Hessel Oosterbeek, 2002. "Evaluating the effect of tax deductions on training," Labor and Demography 0205001, EconWPA. [Downloadable!]
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  2. Edwin Leuven & Hessel Oosterbeek & Bas van der Klaauw, 2004. "The e ect of financial rewards on students achievement: Evidence from a randomized experiment," HEW 0410002, EconWPA. [Downloadable!]
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  3. Leuven, Edwin & Oosterbeek, Hessel & van der Klaauw, Bas, 2003. "The Effect of Financial Rewards on Students' Achievements: Evidence from a Randomized Experiment," CEPR Discussion Papers 3921, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Michael A. Boozer & Stephen E. Cacciola, 2001. "Inside the 'Black Box' of Project STAR: Estimation of Peer Effects Using Experimental Data," Working Papers 832, Economic Growth Center, Yale University. [Downloadable!]
  5. Manuela Angelucci & Giacomo De Giorgi, 2006. "Indirect Effects of an Aid Program: The Case of Progresa and Consumption," IZA Discussion Papers 1955, Institute for the Study of Labor (IZA). [Downloadable!]
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