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Brazil

Doing Experiments with Socially Good but Privately Bad Treatments

David McKenzie's picture
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.

Is the “conditional” in CCTs just a monitoring technology? Evidence from Brazil

David McKenzie's picture

The typical arguments made for the conditioning argument of CCTs are usually based on paternalism (people might have incorrect beliefs about the value of education, or parents may have incomplete altruism for their kids), externalities (the social returns to education exceed the private returns so individuals underinvest),   or political economy (it is easier to sell transfers to the voters if you make them conditional). A