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Experimental and Non-Experimental Methods in Development Economics: A Porous Dialectic

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  • Dehejia Rajeev

    (New York University, CESifo, IZA, and NBER, NYU Wagner, 295 Lafayette Street, 2nd floor, New York, NY 10012)

Abstract

This paper surveys six widely-used non-experimental methods for estimating treatment effects (instrumental variables, regression discontinuity, direct matching, propensity score matching, linear regression and non-parametric methods, and difference-in-differences), and assesses their internal and external validity relative both to each other and to randomized controlled trials. While randomized controlled trials can achieve the highest degree of internal validity when cleanly implemented in the field, the availability of large, nationally representative data sets offers the opportunity for a high degree of external validity using non-experimental methods. We argue that each method has merits in some context and they are complements rather than substitutes.

Suggested Citation

  • Dehejia Rajeev, 2015. "Experimental and Non-Experimental Methods in Development Economics: A Porous Dialectic," Journal of Globalization and Development, De Gruyter, vol. 6(1), pages 47-69, June.
    • Handle: RePEc:bpj:globdv:v:6:y:2015:i:1:p:47-69:n:1
    DOI: 10.1515/jgd-2014-0005
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    More about this item

    Keywords

    external validity; program evaluation; randomized controlled trials observational studies;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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