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Local Knowledge, Formal Evidence, and Policy Decisions

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  • Vivalt, Eva
  • Aidan Coville
  • KC,Sampada

Abstract

How do policymakers value advice from local experts versus formal evidence from impact evaluations when making policy decisions? Using a discrete choice experiment conducted in collaboration with the World Bank and Inter-American Development Bank, we show that policymakers were willing to accept a program that had a 5.0 percentage point smaller estimated effect on enrollment rates if it were recommended by a local expert. They also preferred programs supported by evidence from a different region over programs supported by local evaluations only if the former had a 5.8 percentage point higher estimated impact. These premiums are large, surpassing the effects of many programs aimed at improving enrollment rates. This highlights the substantial weight that policymakers place on local evidence.

Suggested Citation

  • Vivalt, Eva & Aidan Coville & KC,Sampada, 2024. "Local Knowledge, Formal Evidence, and Policy Decisions," Policy Research Working Paper Series 10994, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10994
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    References listed on IDEAS

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    1. Tommaso Crosta & Dean Karlan & Finley Ong & Julius Rüschenpöhler & Christopher R. Udry, 2024. "Unconditional Cash Transfers: A Bayesian Meta-Analysis of Randomized Evaluations in Low and Middle Income Countries," NBER Working Papers 32779, National Bureau of Economic Research, Inc.
    2. Jonas Hjort & Diana Moreira & Gautam Rao & Juan Francisco Santini, 2021. "How Research Affects Policy: Experimental Evidence from 2,150 Brazilian Municipalities," American Economic Review, American Economic Association, vol. 111(5), pages 1442-1480, May.
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    4. Rogger, Daniel & Somani, Ravi, 2023. "Hierarchy and Information," Journal of Public Economics, Elsevier, vol. 219(C).
    5. Eva Vivalt, 2020. "How Much Can We Generalize From Impact Evaluations?," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 3045-3089.
    6. Rema Hanna & Sendhil Mullainathan & Joshua Schwartzstein, 2014. "Learning Through Noticing: Theory and Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1311-1353.
    7. Lant Pritchett & Justin Sandefur, 2015. "Learning from Experiments When Context Matters," American Economic Review, American Economic Association, vol. 105(5), pages 471-475, May.
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