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Should the Randomistas (Continue to) Rule?

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  • Martin Ravallion

Abstract

The rising popularity of randomized controlled trials (RCTs) in development applications has come with continuing debates about the merits of this approach. The paper takes stock of the issues. It argues that an unconditional preference for RCTs is questionable on three main counts. First, the case for such a preference is unclear on a priori grounds. For example, with a given budget, even a biased observational study can come closer to the truth than a costly RCT. Second, the ethical objections to RCTs have not been properly addressed by advocates. Third, there is a risk of distorting the evidence-base for informing policymaking, given that an insistence on RCTs generates selection bias in what gets evaluated. Going forward, pressing knowledge gaps should drive the questions asked and how they are answered, not the methodological preferences of some researchers. The gold standard is the best method for the question at hand.

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  • Martin Ravallion, 2020. "Should the Randomistas (Continue to) Rule?," NBER Working Papers 27554, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27554
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    1. Stéphane J. Baele, 2013. "The ethics of New Development Economics: is the Experimental Approach to Development Economics morally wrong?," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 7(1), November.
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    3. Arthur Alik‐Lagrange & Martin Ravallion, 2019. "Estimating within‐cluster spillover effects using a cluster randomization with application to knowledge diffusion in rural India," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(1), pages 110-128, January.
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    7. Fatoumata Nankoto Cissé, 2022. "How impact evaluation methods influence the outcomes of development projects? Evidence from a meta-analysis on decentralized solar nano projects," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03623394, HAL.
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    18. Fatoumata Nankoto Cissé, 2022. "How impact evaluation methods influence the outcomes of development projects? Evidence from a meta-analysis on decentralized solar nano projects," Documents de travail du Centre d'Economie de la Sorbonne 22008, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    19. Fuchs, Lisa Elena & Orero, Levi & Apondi, Victoria Atieno & Kipkorir, Lang'at, 2021. "How to stop wasting money in international development: Using a structured group selection approach to counter procedural inefficiency," World Development Perspectives, Elsevier, vol. 24(C).

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    More about this item

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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