Policy and Impact Evaluation [FS 24]

This course discusses econometric tools for assessing the causal impact of some policy intervention (also referred to as “treatment”) on an outcome of interest. This may, for instance, concern the effectiveness of public policies (e.g. training programs for unemployed, income support for poor families, public childcare,…), corporate policies (marketing campaigns, educational programs for employees,…), health interventions (new medical treatments…), among many other examples. The following topics are covered:

  • The definition of causal effects (using the “potential outcome” notation)
  • Methods for policy and impact evaluation under exogeneity: estimation based on regression, matching, and weighting, or combinations thereof (doubly robust estimation)
  • Methods for policy and impact evaluation under endogeneity: estimation based on instruments, regression discontinuities and kinks, differences in differences, and changes in changes
  • Methods for assessing causal mechanisms underlying a particular causal effect (mediation analysis)
The lecture is accompanied by 4 PC sessions based on the software package "R", in which the methods are applied to empirical data.