Using research designs patterned after randomized experiments, many recent economic studies examine outcome measures for treatment groups and comparison groups that are not randomly assigned. By using variation in explanatory variables generated by changes in state laws, government draft mechanisms, or other means, these studies obtain variation that is readily examined and is plausibly exogenous. The paper describes the advantages of these studies and suggests how they can be improved. It also provides aids in judging the validity of inferences that they draw. Design complications such as multiple treatment and comparison groups and multiple pre-intervention or post-intervention observations are advocated.
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Bibliography: Meyer, Bruce D., "Natural and Quasi- Experiments in Economics" (December 1994). NBER Working Paper Series, Vol. t0170, pp. -, 1994. Available at SSRN: http://ssrn.com/abstract=225133
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