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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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Item Permalink: http://hdl.handle.net/11858/00-001M-0000-002A-8BFB-7 Version Permalink: http://hdl.handle.net/11858/00-001M-0000-002A-C5E5-7
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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:
Engel, Christoph1, Author              
Affiliations:
1Max Planck Institute for Research on Collective Goods, Max Planck Society, ou_2173688              

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Free keywords: 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
 Abstract: -

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 Dates: 2016
 Publication Status: Published online
 Pages: 12
 Publishing info: Bonn : Max Planck Institute for Research on Collective Goods
 Table of Contents: -
 Rev. Type: -
 Identifiers: Other: 2016/09
 Degree: -

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