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The Experimental Mindset within Development Economics: Proper Use and Handling Are Everything
Author(s) -
Ehmke Mariah,
Shogren Jason F.
Publication year - 2010
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppq025
Subject(s) - mindset , test (biology) , worry , poverty , economics , randomized controlled trial , positive economics , public economics , psychology , economic growth , computer science , medicine , paleontology , anxiety , surgery , artificial intelligence , psychiatry , biology
Recent work with Randomized Controlled Trials (RCTs) in development economics has contributed to economists' use of the experimental mindset to inform policy choices. Development scholars, however, question the authority of RCT evidence, and worry that the RCT trend will turn their profession away from theory and econometrics. We examine this challenge, as well as RCTs' role within the broader experimental area, with a thorough review of relevant literature. We find that generic RCT fears are overstated. Experimental methods should be evaluated as a tool to test theory, search for patterns, and to pre‐test new institutions. From this mindset, we see unexplored pathways that may benefit from the experimental mindset, further economic theory, and reduce poverty.