In 2009 the American Economic Association launched four new journals. Over the past five years, the American Economic Journal Applied Economics (AEJ Applied), edited by development economist Esther Duflo, has published a number of development papers related to impact evaluations.
David McKenzie's blog
- On the FAI blog, Jonathan Morduch discusses the problems of trying to measure the cost of microfinance and why the profession underfocuses on costs – “if you’re not the kind of person who gets pleasure from filling out income tax forms, you’re probably not the kind of person who enjoys calculating microfinance subsidies”.
- On the IDB First steps blog, evidence from CCT programs that the long-term impacts are greater when kids get this in the womb and in their first two years of life versus even when aged 2 to 5: children who were exposed to the CCT while in-utero and during the first two years of life score 0.15 standard deviations higher in the cognitive development assessment than those boys who were exposed to the program when they were 2 to 5 years old.
Standard economic theory would suggest that a one-time infusion of cash should have at most a temporary effect on business profitability – over time, individuals facing high returns should be able to re-invest business profits and bit-by-bit bootstrap themselves up to the steady-state size. Yet in an experiment I did with Suresh de Mel and Chris Woodruff in Sri Lanka, we find a one-time grant has sustained impacts five years later on male microenterprise owners.
- Call for papers – NEUDC conference November 2-3 at Harvard. This is a fun conference which allows you to see lots of new work in development .
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Most experiments in development economics involve giving the treatment group something they want (e.g. cash, health care, schooling for their kids) or at least offering something they might want and can choose whether or not to take up (e.g. business training, financial education). Indeed among the most common justifications for randomization is that there is not enough of the treatment for everyone who wants it, leading to oversubscription or randomized phase-in designs.
- Are regression-discontinuity designs ok for election studies? The Monkey Cage summarizes a new paper which says yes.