Economics 172 Issues in African Economic Development

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Presentation transcript:

Economics 172 Issues in African Economic Development Lecture 6 February 2, 2006

Miguel and Kremer (2004) – worms and education Outline: Methodological issues: Omitted variable bias and randomized experiments Miguel and Kremer (2004) – worms and education Economics 172

Omitted variable bias in OLS (1) Yi = a + bTi + cXi + ei Economics 172

Omitted variable bias in OLS (1) Yi = a + bTi + cXi + ei Economics 172

Omitted variable bias in OLS (1) Yi = a + bTi + cXi + ei Economics 172

Omitted variable bias in OLS Economics 172

Omitted variable bias in OLS (1) Yi = a + bTi + cXi + ei (2) E(Yi | T=1) – E(Yi | T=0) = [a + b + E(Xi | Ti=1) + E(ei | Ti=1)] – [a + 0 + E(Xi | Ti=0) + E(ei | Ti=0)] = b + c [E(Xi | Ti=1) – E(Xi | Ti=0)] Economics 172

Economics 172

Miguel and Kremer (2004) Primary School Deworming Project (PSDP) in Kenya Economics 172

Economics 172

Miguel and Kremer (2004) Primary School Deworming Project (PSDP) in Kenya Randomized design: 1998 1999 Group 1 (25 schools) Treatment Treatment Group 2 (25 schools) Comparison Treatment Group 3 (25 schools) Comparison Comparison Economics 172

Economics 172

PSDP Baseline differences (1998) Group 1 Group 2 Group 3 Latrine at home 0.82 0.81 0.82 Livestock at home 0.66 0.67 0.66 Child sick often 0.10 0.10 0.08 (self-reported) 1996 exam score -0.10 0.09 0.01 (normalized mean 0, s.d. 1) Economics 172

Health, nutrition impacts (1999) Group 1 Group 2 G1–G2 Rate of moderate-heavy infection 0.27 0.52 -0.25* Sick in past week 0.41 0.45 -0.04* Height for age -1.13 -1.22 0.09* (Z-score) Hemoglobin (Hb) 124.8 123.2 1.6 Economics 172

Within-school infection externalities (1999) Group 1 Group 1 Group 2 (Treated) (Untreated) Rate of moderate-heavy Infection, 1999 0.24 0.34 0.52 Economics 172

Within-school infection externalities (1999) Group 1 Group 1 Group 2 (Treated) (Untreated) Rate of moderate-heavy Infection, 1999 0.24 0.34 0.52 Rate of moderate-heavy Infection, 1998 0.39 0.41 - Economics 172

Economics 172

Whiteboard #1 Economics 172

Whiteboard #2 Economics 172

Whiteboard #3 Economics 172

Whiteboard #4 Economics 172

Whiteboard #5 Economics 172

Map of Africa Economics 172