Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998)
"The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence," by David Roodman and Jonathan Morduch (2011) is the most recent of a sequence of papers and postings that seeks to refute the findings of the Pitt and Khandke...
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/11/16985792/replicating-replication-due-diligence-roodman-morduchs-replication-pitt-khandker-1998 http://hdl.handle.net/10986/12111 |
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okr-10986-121112021-04-23T14:02:59Z Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) Pitt, Mark M. Khandker, Shahidur R. AGRICULTURE ALGEBRA BIASES CALCULATION COEFFICIENTS CONSISTENT ESTIMATES CONSTANT TERM CONSUMPTION FUNCTION COVARIANCE CRITICAL VALUES DATA MATRICES DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMETRIC METHODS ECONOMETRIC MODEL ECONOMETRIC MODELING ECONOMETRIC THEORY ECONOMETRICS ENDOGENOUS VARIABLES EQUATIONS ERROR ERROR TERM ESTIMATION COMMANDS ESTIMATORS EXOGENOUS REGRESSORS EXOGENOUS VARIABLES EXPERIMENTATION F-TEST FINITE SAMPLES FIXED EFFECTS HYPOTHESIS TESTING INDEPENDENT VARIABLE INDEPENDENT VARIABLES INSTRUMENTAL VARIABLES INSTRUMENTAL VARIABLES REGRESSION JOURNAL OF ECONOMETRICS KURTOSIS LARGE NUMBER LEAST SQUARES REGRESSION LOG-LIKELIHOOD FUNCTION MATHEMATICS MATRICES MATRIX MAXIMUM LIKELIHOOD MAXIMUM LIKELIHOOD ESTIMATION MAXIMUM LIKELIHOOD METHOD MEAN VALUE MOMENT CONDITIONS NONLINEARITY NORMAL DISTRIBUTION 0 HYPOTHESIS NUMBER OF OBSERVATIONS OUTLIERS PANEL DATA PARAMETER VECTOR POLITICAL ECONOMY POSITIVE EFFECTS PRECISION PREDICTION PROBABILITIES PROBABILITY PROBABILITY VALUE RANDOM SAMPLING RANDOM VARIABLE RANDOM VARIABLES REASONING REGRESSION EQUATION REGRESSION MODEL RESEARCH PAPERS RESEARCH REPORT RESEARCH WORKING PAPERS SAMPLE DESIGN SAMPLE SIZE SET OF VARIABLES SIMULATION SIMULATIONS SIMULTANEOUS EQUATIONS SKEWNESS SLOPE COEFFICIENTS STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATA STATA CODE STATISTICAL THEORY STATISTICALLY SIGNIFICANT EFFECT T-RATIO T-RATIOS TEST STATISTIC TEST STATISTICS VALIDITY WEALTH "The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence," by David Roodman and Jonathan Morduch (2011) is the most recent of a sequence of papers and postings that seeks to refute the findings of the Pitt and Khandker (1998) article "The Impact of Group-Based Credit on Poor Households in Bangladesh: Does the Gender of Participants Matter?" that microcredit for women had significant, favorable effects on poverty reduction. In this paper the authors show that these latest Roodman and Morduch claims are based on seriously flawed econometric methods and theory and a lack of due diligence in formulating models and interpreting output from packaged software. On the basis of Roodman and Morduch's preferred two-stage least squares regression, an alternative calculation of the standard errors would lead one to conclude that the problem with Pitt and Khandker is that they underestimate the positive and statistically significant effect of women's credit on household consumption. As in their previous efforts, the methods of Roodman and Morduch are shown to bias the findings in the direction of rejecting the results of Pitt and Khandker. We also further examine two aspects of our instrumental variable approach that have been attacked by Roodman and Morduch. The first is the validity of the exclusion restrictions underlying the use of interactions between program choice and the set of exogenous variables (including the village fixed effects) as instruments. The second is the application of the "one-half acre" program eligibility rule. The authors show that identification does not require both of these, and present new results dropping each assumption in turn. The results originally reported in the Pitt and Khandker paper hold up extremely well in this new analysis. 2013-01-04T21:41:09Z 2013-01-04T21:41:09Z 2012-11 http://documents.worldbank.org/curated/en/2012/11/16985792/replicating-replication-due-diligence-roodman-morduchs-replication-pitt-khandker-1998 http://hdl.handle.net/10986/12111 English en_US Policy Research Working Paper; No. 6273 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE ALGEBRA BIASES CALCULATION COEFFICIENTS CONSISTENT ESTIMATES CONSTANT TERM CONSUMPTION FUNCTION COVARIANCE CRITICAL VALUES DATA MATRICES DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMETRIC METHODS ECONOMETRIC MODEL ECONOMETRIC MODELING ECONOMETRIC THEORY ECONOMETRICS ENDOGENOUS VARIABLES EQUATIONS ERROR ERROR TERM ESTIMATION COMMANDS ESTIMATORS EXOGENOUS REGRESSORS EXOGENOUS VARIABLES EXPERIMENTATION F-TEST FINITE SAMPLES FIXED EFFECTS HYPOTHESIS TESTING INDEPENDENT VARIABLE INDEPENDENT VARIABLES INSTRUMENTAL VARIABLES INSTRUMENTAL VARIABLES REGRESSION JOURNAL OF ECONOMETRICS KURTOSIS LARGE NUMBER LEAST SQUARES REGRESSION LOG-LIKELIHOOD FUNCTION MATHEMATICS MATRICES MATRIX MAXIMUM LIKELIHOOD MAXIMUM LIKELIHOOD ESTIMATION MAXIMUM LIKELIHOOD METHOD MEAN VALUE MOMENT CONDITIONS NONLINEARITY NORMAL DISTRIBUTION 0 HYPOTHESIS NUMBER OF OBSERVATIONS OUTLIERS PANEL DATA PARAMETER VECTOR POLITICAL ECONOMY POSITIVE EFFECTS PRECISION PREDICTION PROBABILITIES PROBABILITY PROBABILITY VALUE RANDOM SAMPLING RANDOM VARIABLE RANDOM VARIABLES REASONING REGRESSION EQUATION REGRESSION MODEL RESEARCH PAPERS RESEARCH REPORT RESEARCH WORKING PAPERS SAMPLE DESIGN SAMPLE SIZE SET OF VARIABLES SIMULATION SIMULATIONS SIMULTANEOUS EQUATIONS SKEWNESS SLOPE COEFFICIENTS STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATA STATA CODE STATISTICAL THEORY STATISTICALLY SIGNIFICANT EFFECT T-RATIO T-RATIOS TEST STATISTIC TEST STATISTICS VALIDITY WEALTH |
| spellingShingle |
AGRICULTURE ALGEBRA BIASES CALCULATION COEFFICIENTS CONSISTENT ESTIMATES CONSTANT TERM CONSUMPTION FUNCTION COVARIANCE CRITICAL VALUES DATA MATRICES DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMETRIC METHODS ECONOMETRIC MODEL ECONOMETRIC MODELING ECONOMETRIC THEORY ECONOMETRICS ENDOGENOUS VARIABLES EQUATIONS ERROR ERROR TERM ESTIMATION COMMANDS ESTIMATORS EXOGENOUS REGRESSORS EXOGENOUS VARIABLES EXPERIMENTATION F-TEST FINITE SAMPLES FIXED EFFECTS HYPOTHESIS TESTING INDEPENDENT VARIABLE INDEPENDENT VARIABLES INSTRUMENTAL VARIABLES INSTRUMENTAL VARIABLES REGRESSION JOURNAL OF ECONOMETRICS KURTOSIS LARGE NUMBER LEAST SQUARES REGRESSION LOG-LIKELIHOOD FUNCTION MATHEMATICS MATRICES MATRIX MAXIMUM LIKELIHOOD MAXIMUM LIKELIHOOD ESTIMATION MAXIMUM LIKELIHOOD METHOD MEAN VALUE MOMENT CONDITIONS NONLINEARITY NORMAL DISTRIBUTION 0 HYPOTHESIS NUMBER OF OBSERVATIONS OUTLIERS PANEL DATA PARAMETER VECTOR POLITICAL ECONOMY POSITIVE EFFECTS PRECISION PREDICTION PROBABILITIES PROBABILITY PROBABILITY VALUE RANDOM SAMPLING RANDOM VARIABLE RANDOM VARIABLES REASONING REGRESSION EQUATION REGRESSION MODEL RESEARCH PAPERS RESEARCH REPORT RESEARCH WORKING PAPERS SAMPLE DESIGN SAMPLE SIZE SET OF VARIABLES SIMULATION SIMULATIONS SIMULTANEOUS EQUATIONS SKEWNESS SLOPE COEFFICIENTS STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATA STATA CODE STATISTICAL THEORY STATISTICALLY SIGNIFICANT EFFECT T-RATIO T-RATIOS TEST STATISTIC TEST STATISTICS VALIDITY WEALTH Pitt, Mark M. Khandker, Shahidur R. Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| relation |
Policy Research Working Paper; No. 6273 |
| description |
"The Impact of Microcredit on the
Poor in Bangladesh: Revisiting the Evidence," by David
Roodman and Jonathan Morduch (2011) is the most recent of a
sequence of papers and postings that seeks to refute the
findings of the Pitt and Khandker (1998) article "The
Impact of Group-Based Credit on Poor Households in
Bangladesh: Does the Gender of Participants Matter?"
that microcredit for women had significant, favorable
effects on poverty reduction. In this paper the authors show
that these latest Roodman and Morduch claims are based on
seriously flawed econometric methods and theory and a lack
of due diligence in formulating models and interpreting
output from packaged software. On the basis of Roodman and
Morduch's preferred two-stage least squares regression,
an alternative calculation of the standard errors would lead
one to conclude that the problem with Pitt and Khandker is
that they underestimate the positive and statistically
significant effect of women's credit on household
consumption. As in their previous efforts, the methods of
Roodman and Morduch are shown to bias the findings in the
direction of rejecting the results of Pitt and Khandker. We
also further examine two aspects of our instrumental
variable approach that have been attacked by Roodman and
Morduch. The first is the validity of the exclusion
restrictions underlying the use of interactions between
program choice and the set of exogenous variables (including
the village fixed effects) as instruments. The second is the
application of the "one-half acre" program
eligibility rule. The authors show that identification does
not require both of these, and present new results dropping
each assumption in turn. The results originally reported in
the Pitt and Khandker paper hold up extremely well in this
new analysis. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Pitt, Mark M. Khandker, Shahidur R. |
| author_facet |
Pitt, Mark M. Khandker, Shahidur R. |
| author_sort |
Pitt, Mark M. |
| title |
Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| title_short |
Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| title_full |
Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| title_fullStr |
Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| title_full_unstemmed |
Replicating Replication : Due Diligence in Roodman and Morduch’s Replication of Pitt and Khandker (1998) |
| title_sort |
replicating replication : due diligence in roodman and morduch’s replication of pitt and khandker (1998) |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/11/16985792/replicating-replication-due-diligence-roodman-morduchs-replication-pitt-khandker-1998 http://hdl.handle.net/10986/12111 |
| _version_ |
1764419052472631296 |