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Using RCTs to Estimate Long-Run Impacts in Development Economics

Author

Listed:
  • Bougen, Adrien
  • Huang, Yue
  • Kremer, Michael
  • Miguel, Edward

Abstract

We assess evidence from randomized control trials (RCTs) on long-run economic productivity and living standards in poor countries. We first document that several studies estimate large positive long-run impacts, but that relatively few existing RCTs have been evaluated over the long-run. We next present evidence from a systematic survey of existing RCTs, with a focus on cash transfer and child health programs, and show that a meaningful subset can realistically be evaluated for long-run effects. We discuss ways to bridge the gap between the burgeoning number of development RCTs and the limited number that have been followed up to date, including through new panel (longitudinal) data, improved participant tracking methods, alternative research designs, and access to administrative, remote sensing, and cell phone data. We conclude that the rise of development economics RCTs since roughly 2000 provides a novel opportunity to generate high-quality evidence on the long-run drivers of living standards.

Suggested Citation

  • Bougen, Adrien & Huang, Yue & Kremer, Michael & Miguel, Edward, 2019. "Using RCTs to Estimate Long-Run Impacts in Development Economics," CEPR Discussion Papers 13443, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:13443
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    Keywords

    cash transfers; child health; development economics; long-run impacts; panel (longitudinal) data; randomized controlled trials;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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