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Causal Inference and RCTs Measurement Practical Things Causality, RCTs and Impact Evaluations Peter van der Windt Peter van der Windt Causality, RCTs and Impact Evaluations

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Page 1: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Causality, RCTs and Impact Evaluations

Peter van der Windt

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 2: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

We often want to learn about causality:

Does X cause Y?What causes Y?What is the impact of X?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 3: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

We often want to learn about causality:

Does X cause Y?What causes Y?What is the impact of X?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 4: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

We often want to learn about causality:

Does X cause Y?

What causes Y?What is the impact of X?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 5: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

We often want to learn about causality:

Does X cause Y?What causes Y?

What is the impact of X?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 6: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

We often want to learn about causality:

Does X cause Y?What causes Y?What is the impact of X?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 7: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 8: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty?

Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 9: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)

Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 10: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary?

Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 11: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)

UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 12: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security?

Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 13: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.

Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 14: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

But this is not that easy because correlation is not causality.

Conflict → Poverty? Endogeneity? (Conflict ↔ Poverty)Education → Salary? Other variable? (E.g. Ability↑ → Education↑ andSalary↑)UN → Security? Selection? E.g. UN selects insecure areas to operate.Et cetera.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 15: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 16: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 17: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 18: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison:

X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 19: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 20: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison:

X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 21: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 22: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT:

V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 23: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

The Fundamental Problem of Causal Inference

An impact evaluation is all about comparison:

What would have happened if there was no project?

Fundamental Problem of Causal Inference

Temporal comparison: X

Cross-sectional comparison: X

RCT: V

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 24: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs

Randomized Control Trail (RCT)

Used since decades by medicines

Randomly assign treatment to the units

If you toss a coin 10,000 times: How many times do you have “headsup”?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 25: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs

Randomized Control Trail (RCT)

Used since decades by medicines

Randomly assign treatment to the units

If you toss a coin 10,000 times: How many times do you have “headsup”?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 26: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs

Randomized Control Trail (RCT)

Used since decades by medicines

Randomly assign treatment to the units

If you toss a coin 10,000 times: How many times do you have “headsup”?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 27: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs

Randomized Control Trail (RCT)

Used since decades by medicines

Randomly assign treatment to the units

If you toss a coin 10,000 times: How many times do you have “headsup”?

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 28: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs

ALL UNITS

YES Project

= treatment

NO project

= control

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 29: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 30: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 31: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 32: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 33: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 34: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?

Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 35: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 36: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Power

External validity

Costs

Timing

Ethically correct?

Some units do NOT receive the treatment!?Assignment is random!?

Spillovers

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 37: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

Before the project:

4

4

Yes project No project

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 38: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

After the project and NO spillovers:

4

4

Yes project No project

3

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 39: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

After the project and NO spillovers:

Project Impact = 7 – 4 = 3

4

4

Yes project No project

3

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 40: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

After the project and YES spillovers:

4

4

Yes project No project

3 2

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 41: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

RCTs and Limitations

After the project and YES spillovers:

Project Impact = 7 – 6 = 1

4

4

Yes project No project

3 2

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 42: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 43: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 44: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 45: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 46: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 47: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 48: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Options Different than RCTs

Statistical controls

Matching

Difference-In-Difference

Natural experiment. E.g. Radio

Instrumental variable. E.g. Rainfal

Regression Discontinuity

Process tracing

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 49: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Variation in Treatment

YES Sugar NO Sugar

YES Milk 20 0

NO Milk 20 0

Conclusion: Only one treatment part (Sugar) works.

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 50: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Variation in Treatment

YES Sugar NO Sugar

YES Milk 20 1

NO Milk 2 0

Conclusion: Complementary between treatment parts.

(I.e. They only work well together.)

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 51: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

The Fundamental Problem of Causal InferenceRCTsRCTs and LimitationsOptions Different than RCTsVariation in Treatment

Variation in Treatment

YES Sugar NO Sugar

YES Milk 20 20

NO Milk 20 0

Conclusion: Substitution between treatment parts.

(I.e. It’s either one or the other.)

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 52: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 53: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 54: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 55: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)

And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 56: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 57: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 58: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 59: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 60: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Behavioral Measures

Projects often try to impact behavior:

“Governance”, “Social Cohesion”, “Behavior by soldiers”, Etc.

Problem:

People act strategically (they lie)And they parrot

Solution: Behavioral measure

Make it costly for people to act differently than the truth.

Example: Social Cohesion in Liberia

Example: Good governance in Congo. RAPID & $900

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 61: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you?

Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 62: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 63: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 64: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)

Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 65: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 66: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 67: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

Does your husband beat you? Have you ever been raped?

Problem:

People act strategically (they lie)Safety of the respondent

How to measure such sensitive topics?

List-experimentRandom-answer method

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 68: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

There are two groups:

Group A Group B

I am poor I am poorMarket is too far away Market is too far away

Too dry for good harvest Too dry for good harvestMy husband beats me

To each group ask: “How many of the following are relevant to you?”

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 69: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

There are two groups:

Group A Group B

I am poor I am poorMarket is too far away Market is too far away

Too dry for good harvest Too dry for good harvestMy husband beats me

To each group ask: “How many of the following are relevant to you?”

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 70: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

There are two groups:

Group A Group B

I am poor I am poorMarket is too far away Market is too far away

Too dry for good harvest Too dry for good harvestMy husband beats me

To each group ask: “How many of the following are relevant to you?”

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 71: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Behavioral MeasuresSensitive Questions

Sensitive Questions

A. I am beaten by

my husband

B. I am not beaten

by my husband

Select the answer:

Correct / Incorrect

A

B

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 72: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 73: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 74: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 75: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 76: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 77: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations

Page 78: Causality, RCTs and Impact Evaluations · Et cetera. Peter van der Windt Causality, RCTs and Impact Evaluations. Causal Inference and RCTs Measurement Practical Things The Fundamental

Causal Inference and RCTsMeasurement

Practical Things

Practical Things

1 Use technology (e.g. PDAs)

2 Training is crucial

3 Pre-analysis plan

4 Use PhDs

5 Academics & policymakers

END

Peter van der Windt Causality, RCTs and Impact Evaluations