Quantitative Research

Narayan Chandra Das

November 29, 2008

This lecture will focus on how to conduct quantitative research. A brief guideline of statistical and econometric techniques will be provided. This lecture will provided guidance on how to use statistical software (STATA) in statistical and econometric analysis. In this process a simple data set will be practiced. Focus both on theoretical and practical issues will be made but much on practical!

Some key concepts

Sample Population Cross section data Time series data Panel data Statistics Parameter

Statistical tools
Why statistical tools in quantitative research? Key statistical tools for quantitative research T-test Z-test F-test Correlation Regression Regression in time series data Regression in cross section data Regression in panel data

How to conduct impact assessment

Suppose we have a poverty reduction programme, say microfinance programme which we want to evaluate

Design survey Treatment group and control/comparison group Prepare survey instruments Questions: open ended or pre-coded?

How to conduct impact assessment

Difference-in-differences

Difference-in-differences compares observed changes in the outcomes for program participants (treatment) and non-participating comparison group (control), before and after a program Difference-in-differences is also called doubledifference

Impact assessment
Difference-in-differences
Treatment group Income Before Ybt Income After Yat Comparison group Ybc Yac

Now calculate the difference-in-differences of the means of income: Impact on income = (Ybt - Ybc ) - ( Yat - Yac )

Impact assessment
Difference-in-differences
The double difference results can be estimated using regression which will enable to test significance yi = 0 + 1 treati + 2 afteri + 3 treati*afteri + ei

where treat = 1 if in treatment group, treat = 0 if in control group after = 1 if after treatment, after= 0 if before treatment The coefficient on the interaction term (3 ) gives the difference-in-differences estimate of the treatment effect

Impact assessment
Difference-in-differences A set of other variables can be controlled in the double difference regression: yi = 0 + 1 treati + 2 afteri + 3 treati*afteri + 4 Zi + ei

Impact assessment

Some other methods --