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Summary

This post overviews, visualizes, and hypothesizes applications of five short-term impact evaluation methods: 1) pre-post, 2) simple difference, 3) difference in differences, 4) randomized controlled trial, and 5) regression discontinuity design. It can be used as a thought stimulating resource for persons interested in evaluating the cost-effectiveness of their and others’ programs.

 

Structure

Method 

Compares: The values of the outcome metric that the method compares in order to estimate the program impact

Counterfactual estimate: The estimated value of the outcome metric or its change during the program in absence of the program

Assumption: Study validity requirement that is not validated by the method

Uses: Contexts where the method could be used

Examples: Hypothetical examples where the method can be applied

 

Methods

1. Pre-post

Compares: Participants’ metric values before and after the program

Counterfactual estimate: Zero change in participants’ metric values during the program

Assumption: Nothing would have influenced the participants’ observed metric in the absence of the program

Uses: Programs with unique outcomes and outputs

Examples:

  • Health outcomes in areas where other than the program health specialists cannot operate and beneficiaries cannot travel
  • Financial literacy changes after a short course uniquely providing these skills

 

The pre-post method compares the participants’ metric values before and after the program.

 

1.5 Pre-post with trend

Compares: Participants’ actual and extrapolated metric values (both) after the program

Counterfactual estimate: Participants’ metric value change based on the metric trend extrapolation

Assumption: The participants’ metric value trend continues during the course of the program

Uses: Programs with constant-trend impact metrics

Examples:

  • Average distance to a clean water supply point in a region where tap water infrastructure has been improving steadily over a decade and substantial investment changes are unlikely
  • HIV/AIDS incidence in an area where this incidence has constant growth and where an increased growth rate of the number or efficiency of organizations addressing this issue is unlikely

 

The pre-post method with trend compares participants’ actual and extrapolated metric values after the program.

 

2. Simple difference 

Compares: Participants’ and non-participants’ metric values after the program

Counterfactual estimate: Non-participants’ metric values after the program

Assumption: The metric value changes due to the program for participants and non-participants are comparable and secondly, participants’ and non-participants’ metric values before the program are equivalent

Uses: Studies of comparable analysis units (such as individuals or households) in constant situations

Examples:

  • Chickens’ wellbeing on comparable farms with and without specific welfare improving measures
  • Incomes of comparable extremely poor households in a poverty trap participating and not participating in a cash transfer program

 

The simple difference method compares participants’ and non-participants’ metric values after the program.

 

3. Difference in differences 

Compares: Participants’ and non-participants’ before-after metric value differences, while participants and non-participants are not assigned randomly

Counterfactual estimate: Non-participants’ before-after metric value change

Assumption: Participants’ metric value would have changed the same as non-participants’ did

Uses: Analyses of comparable units in comparably changing situations

Examples:

  • Education investments of comparable households participating and not participating in a pamphlet program in an area with a new radio program overviewing the importance of education
  • COVID-19 prevention measures taken by individuals during the start of the pandemic participating and not participating in a radio program on COVID-19 prevention

 

The difference in differences method compares participants’ and non-participants’ before-after metric value differences, while participants and non-participants are not assigned randomly.

 

4. Randomized controlled trial 

Compares: Participants’ and non-participants’ before-after metric value differences, while participants and non-participants are assigned randomly

Counterfactual estimate: Non-participants’ before-after metric value change

Assumption: Participants’ metric value would have changed the same as non-participants’ did

Uses: Analyses of diverse units in comparably changing situations

Examples:

  • Revenue of different micro-enterprises (some of which participate in a revenue-increasing program and some of which do not) in a region with comparable growth of relevant economic opportunities
  • Preventive healthcare measures taken by different households (some of which participate in a conditional cash transfer program and some of which do not) in an area with comparable preventive healthcare awareness programming

 

The randomized controlled trial method compares participants’ and non-participants’ before-after metric value differences, while participants and non-participants are assigned randomly.

 

5. Regression discontinuity design

Compares: Non-participants’ metric value trend extrapolation and participants’ actual metric values around a program eligibility cutoff score

Counterfactual estimate: Metric value trend extrapolation of non-participants just below an eligibility cutoff score

Assumption: In absence of the program, the outcome trend of non-participants just below the program eligibility cutoff score would have continued to the eligibility scores of participants just above the cutoff score

Uses: Programs with an eligibility metric that influences the outcome

Examples:

  • Attendance effects of a program for students below a certain test score level
  • Healthcare-seeking behavior changes due to a program for patients above a certain distance from a clinic

 

The regression discontinuity design compares non-participants’ metric value trend extrapolation and participants’ actual outcome metric values around a program eligibility cutoff score.

 

Conclusion

A variety of quantitative methods can be used to evaluate programs’ short-term impact.

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