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Designing and analysing powerful experiments: practical tips for applied researchers

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  • David McKenzie

Abstract

This paper offers practical advice on how to improve statistical power in randomised experiments through choices and actions researchers can take at the design, implementation and analysis stages. At the design stage, the choice of estimand, choice of treatment, and decisions that affect the residual variance and intra‐cluster correlation can all affect power for a given sample size. At the implementation stage, researchers can boost power through increasing compliance with treatment, reducing attrition and improving outcome measurement. At the analysis stage, power can be increased through using different test statistics or estimands, through the choice of control variables, and through incorporating informative priors in a Bayesian analysis. A key message is that it does not make sense to talk of ‘the’ power of an experiment. A study can be well powered for one outcome or estimand but not others, and a fixed sample size can yield very different levels of power depending on researcher decisions.

Suggested Citation

  • David McKenzie, 2025. "Designing and analysing powerful experiments: practical tips for applied researchers," Fiscal Studies, John Wiley & Sons, vol. 46(3), pages 305-322, September.
  • Handle: RePEc:wly:fistud:v:46:y:2025:i:3:p:305-322
    DOI: 10.1111/1475-5890.70003
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    15. McKenzie, David, 2012. "Beyond baseline and follow-up: The case for more T in experiments," Journal of Development Economics, Elsevier, vol. 99(2), pages 210-221.
    16. Sarojini Hirshleifer & David McKenzie & Rita Almeida & Cristobal Ridao‐Cano, 2016. "The Impact of Vocational Training for the Unemployed: Experimental Evidence from Turkey," Economic Journal, Royal Economic Society, vol. 126(597), pages 2115-2146, November.
    17. Brendon McConnell & Marcos Vera‐Hernández, 2025. "Going beyond simple sample size calculations: a practitioner's guide," Fiscal Studies, John Wiley & Sons, vol. 46(3), pages 323-348, September.
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    19. McKenzie, David, 2020. "If it needs a power calculation, does it matter for poverty reduction?," World Development, Elsevier, vol. 127(C).
    20. Thomas, Duncan & Witoelar, Firman & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Sumantri, Cecep & Suriastini, Wayan, 2012. "Cutting the costs of attrition: Results from the Indonesia Family Life Survey," Journal of Development Economics, Elsevier, vol. 98(1), pages 108-123.
    21. David McKenzie, 2021. "Small business training to improve management practices in developing countries: re-assessing the evidence for ‘training doesn’t work’," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 276-301.
    22. Stefano DellaVigna & Elizabeth Linos, 2022. "RCTs to Scale: Comprehensive Evidence From Two Nudge Units," Econometrica, Econometric Society, vol. 90(1), pages 81-116, January.
    23. Leonardo Iacovone & David McKenzie & Rachael Meager, 2025. "Bayesian Impact Evaluation With Informative Priors: An Application to a Colombian Management and Export Improvement Program," Econometrica, Econometric Society, vol. 93(5), pages 1915-1935, September.
    24. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881, August.
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    26. Miriam Bruhn & David McKenzie, 2009. "In Pursuit of Balance: Randomization in Practice in Development Field Experiments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 200-232, October.
    27. Karthik Muralidharan & Mauricio Romero & Kaspar Wüthrich, 2025. "Factorial Designs, Model Selection, and (Incorrect) Inference in Randomized Experiments," The Review of Economics and Statistics, MIT Press, vol. 107(3), pages 589-604, May.
    28. Sarojini Hirshleifer & David McKenzie & Rita Almeida & Cristobal Ridao‐Cano, 2016. "The Impact of Vocational Training for the Unemployed: Experimental Evidence from Turkey," Economic Journal, Royal Economic Society, vol. 126(597), pages 2115-2146, November.
    29. Gabriel Lara Ibarra & David McKenzie & Claudia Ruiz-Ortega, 2021. "Estimating Treatment Effects with Big Data When Take-up is Low: An Application to Financial Education," The World Bank Economic Review, World Bank, vol. 35(2), pages 348-375.
    30. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Returns to Capital in Microenterprises: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 423-423.
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    1. Brendon McConnell & Marcos Vera‐Hernández, 2025. "Going beyond simple sample size calculations: a practitioner's guide," Fiscal Studies, John Wiley & Sons, vol. 46(3), pages 323-348, September.

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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