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Evaluating Social Policy by Experimental and Nonexperimental Methods

Author

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

Abstract

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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    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, July.
    2. Steven Glazerman & Dan M. Levy & David Myers, 2003. "Nonexperimental Versus Experimental Estimates of Earnings Impacts," The ANNALS of the American Academy of Political and Social Science, , vol. 589(1), pages 63-93, September.
    3. 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.
    4. Hasan Bakhshi & John Edwards & Stephen Roper & Judy Scully & Duncan Shaw & Lorraine Morley & Nicola Rathbone, 2013. "An Experimental Approach to Industrial Policy Evaluation: The case of Creative Credits," Research Papers 0004, Enterprise Research Centre.
    5. 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.
    6. Katherine Baicker & Theodore Svoronos, 2019. "Testing the Validity of the Single Interrupted Time Series Design," CID Working Papers 364, Center for International Development at Harvard University.
    7. Takasaki, Yoshito, 2024. "Impacts of vocational training for persons with disabilities: Experimental evidence from Cambodia," Journal of Development Economics, Elsevier, vol. 169(C).
    8. Jacek Liwiński, 2017. "Premia płacowa z kształcenia na studiach podyplomowych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 105-127.
    9. 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.
    10. Geoff Perry & Tim Maloney, 2008. "Economic Evaluation of the Training Opportunities Programme in New Zealand," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(2), pages 163-185.
    11. Katherine Baicker & Theodore Svoronos, 2019. "Testing the Validity of the Single Interrupted Time Series Design," NBER Working Papers 26080, National Bureau of Economic Research, Inc.
    12. Jerzy Michalek & Pavel Ciaian & Jan Pokrivcak, 2018. "The impact of producer organisations on farm performance: A case study of large farms in Slovakia," JRC Research Reports JRC108059, Joint Research Centre.
    13. 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.
    14. 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).
    15. 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.
    16. Maasoumi, Esfandiar & Millimet, Daniel & Sarkar, Dipanwita, 2005. "The Distribution of Returns to Marriage," Departmental Working Papers 0503, Southern Methodist University, Department of Economics.
    17. Kai Zhao & Wanshu Wu & Junmei Ye, 2023. "The impact of “Mass Entrepreneurship and Innovation” policy on SMEs’ innovation: Using quasi‐natural experiments," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 348-365, April.
    18. 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).
    19. 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. 4(2), pages 1-28, February.
    20. Vivian C. Wong & Peter M. Steiner & Kylie L. Anglin, 2018. "What Can Be Learned From Empirical Evaluations of Nonexperimental Methods?," Evaluation Review, , vol. 42(2), pages 147-175, April.
    21. Michalek, Jerzy & Ciaian, Pavel & Pokrivcak, Jan, 2018. "The impact of producer organizations on farm performance: The case study of large farms from Slovakia☆," Food Policy, Elsevier, vol. 75(C), pages 80-92.

    More about this item

    Keywords

    STATISTICS ; SOCIAL POLICY ; EXPERIMENTS;
    All these keywords.

    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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