Arbeitspapier

A random shock is not random assignment

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.

Language
Englisch

Bibliographic citation
Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2016/9

Classification
Wirtschaft
Econometrics
Hypothesis Testing: General
Design of Experiments: General
Criminal Law
Subject
identification
random exposure
random shock
natural experiment
certainty and severity of punishment

Event
Geistige Schöpfung
(who)
Engel, Christoph
Event
Veröffentlichung
(who)
Max Planck Institute for Research on Collective Goods
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Engel, Christoph
  • Max Planck Institute for Research on Collective Goods

Time of origin

  • 2016

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