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© 2012 Pearson Education, Inc. Publishing as Prentice Hall

Development Interventions

Random and Natural Experiments: Some New Techniques in Economic Development

random experiment  (Sometimes referred to as a randomized experiment.) A technique in which outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

natural experiment  Selection of a control versus experimental group in testing the outcome of an intervention is made as a result of an exogenous event outside the experiment itself and unrelated to it.

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