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Estimating within‐cluster spillover effects using a cluster randomization with application to knowledge diffusion in rural India

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  • Arthur Alik‐Lagrange
  • Martin Ravallion

Abstract

Spillover effects within randomized clusters pose a challenge for identifying impacts of an individualized treatment. The paper proposes a solution. Longitudinal and intra‐household observations are combined in estimating the direct knowledge gain from watching an info‐movie in rural India, while randomized village assignment identifies knowledge sharing. Simulations on synthetic data and econometric tests provide support for the estimation method. We find evidence of information sharing, but far less so for disadvantaged groups, such as illiterate and lower‐caste individuals; these groups rely more on actually seeing the movie. Our results are consistent with sizeable biases in ordinary least squares, matching or instrumental variable impact estimators that ignore within‐cluster spillovers.

Suggested Citation

  • Arthur Alik‐Lagrange & Martin Ravallion, 2019. "Estimating within‐cluster spillover effects using a cluster randomization with application to knowledge diffusion in rural India," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(1), pages 110-128, January.
    • Handle: RePEc:wly:japmet:v:34:y:2019:i:1:p:110-128
    DOI: 10.1002/jae.2658
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    Cited by:

    1. Martin Ravallion, 2022. "On the Gains from Tradable Benefits‐in‐kind: Evidence for Workfare in India," Economica, London School of Economics and Political Science, vol. 89(355), pages 770-787, July.
    2. Martin Ravallion, 2018. "Should the Randomistas (Continue to) Rule?," Working Papers 492, Center for Global Development, revised 17 Jan 2019.
    3. Martin Ravallion, 2021. "On the Gains from Tradeable Benefits-in-Kind," Working Papers gueconwpa~21-21-13, Georgetown University, Department of Economics.
    4. Anna M. Wilke & Donald P. Green & Jasper Cooper, 2020. "A placebo design to detect spillovers from an education–entertainment experiment in Uganda," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 183(3), pages 1075-1096, June.

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