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The logic of adaptive sequential experimentation in policy design:

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  • Xing, Haipeng
  • Zhang, Xiaobo

Abstract

In this paper, we argue that economists can learn a great deal from the design principles implemented in medical research. We develop a theoretical model to show the logic of adaptive sequential experiment design in the presence of uncertainty over negative effects and discuss how to choose samples in a population to minimize the experiment cost. We also point out the applications of our proposed framework in the economic domain, such as economic reforms and new product design.

Suggested Citation

  • Xing, Haipeng & Zhang, Xiaobo, 2013. "The logic of adaptive sequential experimentation in policy design:," IFPRI discussion papers 1273, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1273
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    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01273.pdf
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    References listed on IDEAS

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    1. Jessica Cohen & Pascaline Dupas, 2008. "Free Distribution or Cost-Sharing? Evidence from a Malaria Prevention Experiment," NBER Working Papers 14406, National Bureau of Economic Research, Inc.
    2. Angus Deaton, 2010. "Instruments, Randomization, and Learning about Development," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 424-455, June.
    3. Jessica Cohen & Pascaline Dupas, 2010. "Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 1-45.
    4. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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    Cited by:

    1. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.

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    Keywords

    Economic development; Economy; Experiments; randomized experiment; Social Sciences; methodologies;

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