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Evaluating Social Policy by Experimental and Nonexperimental Methods


  • Bratberg, E.
  • Grasdal, A.
  • Risa, A.E.


Establishing causal relationships in social policy evaluation is important, but difficult due to sample selection. To evaluate the performance of estimators designed to handle sample selection bias we analyse data from a Norwegian rehabilitation project with a randomised experimental design. The data permit us to compare the performance of different nonexperimental estimators with the experimental results. In our case study we find that nonexperimental evaluation based on sample selection estimators with selection terms which fails to meet conventional levels of statistical significance is highly unreliable. The difference in difference estimator and stratification on propensity scores perform better in our context.

Suggested Citation

  • Bratberg, E. & Grasdal, A. & Risa, A.E., 2000. "Evaluating Social Policy by Experimental and Nonexperimental Methods," Norway; Department of Economics, University of Bergen 1700, Department of Economics, University of Bergen.
  • Handle: RePEc:fth:bereco:1700

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    References listed on IDEAS

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    10. repec:bla:joares:v:25:y:1987:i::p:1-21 is not listed on IDEAS
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    Cited by:

    1. Astrid Grasdal, 2001. "The performance of sample selection estimators to control for attrition bias," Health Economics, John Wiley & Sons, Ltd., vol. 10(5), pages 385-398.
    2. Fredriksson, Per G. & Millimet, D.L.Daniel L., 2004. "Comparative politics and environmental taxation," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 705-722, July.
    3. Hoken, Hisatoshi & Su, Qun, 2015. "Measuring the effect of agricultural cooperatives on household income using PSM-DID : a case study of a rice-producing cooperative in China," IDE Discussion Papers 539, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. repec:enr:rpaper:0004 is not listed on IDEAS
    5. List, John A. & McHone, W. Warren & Millimet, Daniel L., 2004. "Effects of environmental regulation on foreign and domestic plant births: is there a home field advantage?," Journal of Urban Economics, Elsevier, vol. 56(2), pages 303-326, September.
    6. Maasoumi, Esfandiar & Millimet, Daniel & Sarkar, Dipanwita, 2005. "The Distribution of Returns to Marriage," Departmental Working Papers 0503, Southern Methodist University, Department of Economics.
    7. Slottje, Daniel J. & Millimet, Daniel L. & Buchanan, Michael J., 2007. "Econometric analysis of copyrights," Journal of Econometrics, Elsevier, vol. 139(2), pages 303-317, August.
    8. Hoken, Hisatoshi, 2016. "Participation in farmer's cooperatives and its effects on agricultural incomes : evidence from vegetable-producing areas in China," IDE Discussion Papers 578, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. List John A. & Millimet Daniel L & McHone Warren, 2004. "The Unintended Disincentive in the Clean Air Act," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-28, February.
    10. repec:sgh:gosnar:y:2017:i:5:p:105-127 is not listed on IDEAS
    11. Steven Stern & John Pepper & David Dean & Robert Schmidt, 2011. "The Effects of Vocational Rehabilitation for People with Mental Illlness," Virginia Economics Online Papers 382, University of Virginia, Department of Economics.
    12. Bakhshi, Hasan & Edwards, John S. & Roper, Stephen & Scully, Judy & Shaw, Duncan & Morley, Lorraine & Rathbone, Nicola, 2015. "Assessing an experimental approach to industrial policy evaluation: Applying RCT+ to the case of Creative Credits," Research Policy, Elsevier, vol. 44(8), pages 1462-1472.

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    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access


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