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A Random Shock Is Not Random Assignment
Engel, C.
(2016).
A Random Shock Is Not Random Assignment.
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https://hdl.handle.net/11858/00-001M-0000-002A-8BFB-7
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https://hdl.handle.net/11858/00-001M-0000-002A-C5E5-7
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http://www.coll.mpg.de/pdf_dat/2016_09online.pdf
(Preprint)
Description
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A random shock excludes reverse causality and reduces omitted variable bias. Yet a natural experiment does not identify random exposure to treatment, but the reaction to a random change from baseline to treatment. A lab experiment comparing higher certainty with higher severity of punishment for stealing (holding the expected value of the intervention constant) shows that the difference between the effects of a random shock and random assignment can be pronounced.
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Creators
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Engel, Christoph
1
, Author
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Max Planck Institute for Research on Collective Goods, Max Planck Society, ou_2173688
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Free keywords
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identification, random exposure, random shock, natural experiment, certainty and severity of punishment
JEL
:
C01 - Econometrics
JEL
:
C12 - Hypothesis Testing: General
JEL
:
C90 - General
JEL
:
K14 - Criminal Law
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Published Online:
2016
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Published online
Pages
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12
Publishing info
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Bonn : Max Planck Institute for Research on Collective Goods
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-
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Other: 2016/09
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