ECON 151 Lecture Notes - Lecture 25: Microcredit, Opportunity Cost

• School: Santa Clara University
• Department: Economics
• Course: ECON 151
• Professor: Bouguen

Document Summary

Vouchers were given to students who have, without treatment, better schooling abilities than the ones who didn"t get it. Ex: if information on the voucher program is only available to the most educated families. Ex2: if voucher do not fully cover tuition fee, only rich families among the poor will access the program. The voucher were given to the students who have, without treatment, Lower schooling abilities than the ones who didn"t get it. For instance, if schools decided to prioritized under-achievers bias is downward (under-estimation) With randomization, full compliance the selection bias becomes: Where nt (c) is the number of observation in the treatment (control) group and t(c) the mean in the treatment (control) group. Assigning individual to a treatment group, does not mean that she will be treated: Often, a minority of individuals take up new policies, Lack of information, time constraints, other equivalent programs, transaction costs, transportation costs, stigma