IDEAS home Printed from https://ideas.repec.org/a/bla/ausecr/v58y2025i3p251-258.html
   My bibliography  Save this article

The Case for Randomised Trials (and Why Big Data Does Not Supersede Randomisation)

Author

Listed:
  • Andrew Leigh

Abstract

Research Question/Issue With the growing availability of large‐scale datasets, is randomisation still necessary for identifying causal impacts? Research Findings/Insights Randomised trials, by using luck to assign participants to treatment and control groups, reliably provide a credible counterfactual that ensures observed differences reflect causal impacts. In contrast, observational data often produces misleading correlations that fail to replicate under experimental conditions. Therefore, the increased availability of big data does not make randomisation obsolete. Practitioner/Policy Implications I propose five approaches to increase the quality and quantity of randomised policy trials: encourage curiosity in yourself and those you lead; seek simple trials, especially at the outset; ensure experiments are ethically grounded; foster institutions that push people towards more rigorous evaluation; and collaborate internationally to share best practice and identify evidence gaps. Methods Used This paper employs a qualitative synthesis of historical and contemporary examples, illustrating the superiority of randomised trials over purely observational methods. By drawing comparisons across disciplines—economics, health, and social policy—it highlights how nonexperimental approaches can fall short and explores how big data can be a complement to rigorous randomised trials.

Suggested Citation

  • Andrew Leigh, 2025. "The Case for Randomised Trials (and Why Big Data Does Not Supersede Randomisation)," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 58(3), pages 251-258, September.
  • Handle: RePEc:bla:ausecr:v:58:y:2025:i:3:p:251-258
    DOI: 10.1111/1467-8462.70003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8462.70003
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1467-8462.70003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecr:v:58:y:2025:i:3:p:251-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/mimelau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.