Evaluation Methods in Empirical Economics

Evaluation Methods in Empirical EconomicsEvaluation rules in a posteriori economics fall into quintet broad categories distributively provides an alternative speak to for constructing the counterfactual. Alternative evaluation methods depend on several criteria like a) mortalality of the political broadcast i.e. whether the plan/policy is local or national, lesser surmount or global, b) nature of questions to be answered, and c) nature of info available (Blundell and Dias 2000). Heckman et.al (1997, 1998a,b) showed that data none is in addition a crucial ingredient for the determination of the curb estimation strategy.Both in the case of large scale and small scale move evaluation work, randomized identification is often use. It is a fair allocation rule. Because the program manager ensures that, every entitled person or unit has the same chance of receiving the program. When the observation will be very large, any characteristic (either observed or unobserved) wil l function through treatment and parity sort out if they atomic number 18 created through randomize assignment.An evaluation is internally valid if it uses a valid comparison group and when the impact estimated in the evaluation sample can be speak to the total population, that evaluation will be called externally valid. disarrange assignment is used, when there exists excess demand for a program and when a program needs to be phased until it covers the entire population. (Gertler et.al 2011).In the Progresa program, where cash was transferred to poor mothers in rural Mexico for their childrens enrolment in take Schultz (2004) based on the randomized assignment entrap that, gentilityal grants to rural poor mothers had an yield on the enrolment.. In the paper Expanding credit access using Randomized Decisions to estimate the Impacts, (Karlan and Zinman 2008), the authors reason out that, marginal loans buildd significant discharge benefits for borrowers over a wide rang e of outcome by using randomized experiment.In assessing the effect of performance based payment on the use and quality of enate and child health services provided by health-cares in Rwanda, Basinga et.al (2011) think that, financial performance incentives (i.e. payment for performance) could improve the use and quality of maternal and child health services.Vermeersch by using randomised technique examined that, school participation was 30% greater in twenty five Kenyan schools where a free breakfast was introduced than in twenty five comparison schools( Vermeersch 2002).Kremer et.al (2002) evaluated a program where a nongovernmental organisation provided uniforms, textbookbooks, and classroom construction to cardinal schools that were randomly chosen from fourteen poorly performing schools in Kenya and put together that, dropout rates was considerably low in treatment schools. In evaluating a twice-yearly school based mass treatment program in Kenya, where punk de-worming dru gs were provided ( as intestinal worm among children was highly prevalent) in seventy five schools which were randomly selected, Miguel and Kremer (2003a) found that, the absenteeism rate in treatment schools lowered round off by 25%.From randomized evaluation , it was found that, provision of textbooks in schools in Kenya increased the test scores by about 0.2 cadence deviation, but there was an increase in test score of those students who had scored swell up (top 20-40%) in the pre-test exam before the intervention of the program. They also found that, text book provision didnt affect the test scores of tush 60% students (Glewwe et.al 2002). Seva mandir, an Indian NGO, runs in Indian villages, introduced a program, where a trice teacher (preferably woman) was randomly assigned to twenty one out of 40 devil schools in non formal education centres. Banerjeee et.al(2002) evaluated this program by monitor the attendance of both teachers and children and found that, the number o f closing days rock-bottom after the introduction of the program (i.e. 44% in one- teacher and 39% in two- teacher). They also found the participation of girls also increased.Banerjee et.al (2003) evaluated the impact of a remedial education program introduced by Pratham, an Indian NGO, where young women were leased from the communities and were providing remedial education to children in Government school. On an sightly, after two years of the program, they found that, the test scores of the students increased by 0.39 ideal deviation. Moreover, the bottom aim children gained the largest out of this program. They also concluded that, hiring remedial education teachers from community is 10 times more than cost effective than hiring mod teachers.Glewwe et.al (2003) evaluated a program where parent school committees were providing gifts to teachers whose students were performing well and concluded that, the test scores f the students who were a part of the program initially inc reased but later on fell back to the level of comparison group at the end of the program.In the evaluation of a Colombian program for extending the coverage of secondary school ( programmea de Amlplication de cobertura de la education Secundaris), where vouchers for private schools were allocated by lottery due to the limitation of programs budget, Angrist et.al (2002) took the advantage of randomly assigned treatment and found that, lottery winners were 15-20% more likely to attend private schools, 10% more likely to transact the 8th grade and scored on an average 0.2 standard deviation higher(prenominal) on standardised tests.Randmised advancement method is similar to that of the randomised broadenings. down the stairs this method, we randomly select the units to whom we promote the treatment instead of randomly selecting units to whom we offer the treatment. By doing so, we leave the program open for every unit. There are three types of units under randomised promotion meth od1) Always- always they fate to enrol in the program, 2) Enroll- If- Promoted- they will enrol only when additional promotion is provided, 3)Never- they will never enrol in the program whether the promotion is offered or not ( Gertler 2011). Both Gertler et.al (2008)1 and Newman et.al (2002)2 used the randomised promotion technique as an impact evaluation tool.In impact evaluation, Regression discontinuity design method will e used for a program that have a continuous eligibility index with a clearly defined cut-off score to localize the eligibility of the participants (Gertler 2011). In assessing the effect of social assistance program, which was funded through the Canadian economic aid plan, in Quebec, Canadain in labor market outcome, Lemieux and Milligan (2005) by using retroflexion discontinuity design method by limiting the sample to men found that, access to greater social assistance benefits reduced employment by about 4.5 percent for men.To get wind the impact of scho ol fee decline program on school enrolment in the city of Bogota, Colombia, Barrera-Osario et.al (2007) used regression discontinuity design method and found a positive impact on school enrolment rates. Regression discontinuity design method was also used t evaluate a social safety net initiative in Jamaica. In 2001, the Government of Jamaica initiated a program namely, Program of Advancement through Health and Education (PATH), where grants was given to children in eligible poor househ one-time(a)s on the condition of regular attendance and health visits. charge and Ohis (2007) by using regression discontinuity design found that, PATH program increased school attendance for children ages 6 to 17 by an average of 0.5 days per month. Likewise, Matinez(2004)3 and Filmer and Schady (2009)4 also used regression discontinuity design method to study the impact of a program.Propensity score matching method pairs each program participants with a single nonparticipant, where pairing is don e on the arse of the degree of similarity in the estimated probability of participating in the program (Smith and Todd 2001). In measuring the impact of training program on trainees earning, Lalonde (1986) by comparing both data-based and non experimental results concluded that, non experimental methods are subjected to specification errors and also suggested to be aware while implementing these methods.Dehejia and Wahba (1998,1999) by using NSW data concluded that, matching approaches are generally more reliable thangeneral econometric estimators as they found that, matching estimators were able to produce a result which was a replicate of experimental NSW result. Smith and Todd (2005a) argued that, PSM does not solve the selection problem which was studied by Lalonde.1 Gertler et.al (2008) evaluated the impact of a maternal and child health insurance program in Argentina.2 Newman et.al (2002) evaluated a program where social investment fund was provided for small scale investment s in education, health and water infrastructure in Bolivia.3 Matinez(2004) studied the effect of old age pension program on consumption.4 Filmer and Schady(2009) studied the impact of intelligence in school enrolment and testscores of poor students in Colombia.