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Power Analysis Through Simulations in STATA: A Step-by-Step Guide

Author

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  • Campos-Mercade, Pol

    (Department of Economics, Lund University)

Abstract

You want to run an experiment where you anticipate finding a treatment effect. How large should your sample size be to have a reasonable chance of detecting significant results? In this manuscript, I present and explain the Stata code I use to address this question. The code uses simulations to conduct power analyses, offering a flexible alternative to the commonly used analytical tools. Unlike traditional methods, this approach can accommodate any experimental design and statistical test that Stata supports. The code is straightforward, user-friendly, and can be used effectively with minimal coding experience.

Suggested Citation

  • Campos-Mercade, Pol, 2024. "Power Analysis Through Simulations in STATA: A Step-by-Step Guide," Working Papers 2024:4, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2024_004
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    References listed on IDEAS

    as
    1. John List & Sally Sadoff & Mathis Wagner, 2011. "So you want to run an experiment, now what? Some simple rules of thumb for optimal experimental design," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 439-457, November.
    2. Charles Bellemare & Luc Bissonnette & Sabine Kröger, 2016. "Simulating power of economic experiments: the powerBBK package," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(2), pages 157-168, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Power analysis; Simulations; Stata;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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