Using a new survey of firms in New Zealand, we document how exogenous variation in the macroeconomic uncertainty perceived by firms affects their economic decisions. We use randomized information treatments that provide different types of information about the first and/or second moments of future economic growth to generate exogenous changes in the perceived macroeconomic uncertainty of some firms. The effects on their decisions relative to their initial plans as well as relative to an untreated control group are measured in a follow-up survey six months later.
IGL Trials Database
IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.
This project is a collaboration with Corner to Corner to study the impact of their entrepreneurship training course on financial stability. Corner to Corner, a Nashville-based nonprofit, is focused on their mission of helping their neighbors to flourish and addressing the racial wealth gap. One of their primary programs is The Academy, a 10-week entrepreneurship training course that teaches students the fundamentals of starting and operating their own business.
Climate change poses an urgent and existential threat to the wine sector. However, it is not easy for wineries and farmers to take action to reduce carbon emission comparing to adaptation. How can we encourage these actions? Farmers often seek information before take action, which influences their current risk perceptions of extreme weather condition or moral norms. Regarding the information, a positive approach focusing on empowering farmers to take action to address climate change is generally more successful at engaging people and minimizing defensive reactions.
Microcredit promised business growth for small firms lacking access to banking loans. Although microcredit has reached millions, recent randomized evaluations find limited average business impacts. Critics often blame contract rigidity, specifically the fixed and frequent installments, for the lack of productive risk-taking. But such rigidity may instill borrower discipline. This study partnered with a Colombian lender that offered first-time borrowers a flexible loan that permitted delaying up to three monthly repayments.
This paper tests whether providing more information on business practices can lead firms to seek out advice and improve their practices. The authors collaborated with a business advice provider in Brazil to implement a randomized experiment with 866 small firms. The treatment groups received different versions of an information sheet that benchmarked business practices to other firms and listed five practices to improve.
The ‘Evolve Digital’ trial was developed with the objective of boosting digital adoption in small family firms through identifying a cost-effective, yet productivity-enhancing programme of peer group learning for small family businesses, which can be replicated throughout the country.
The study investigates the role of information constraints and behavioral biases in the under-adoption of key business practices by micro-enterprises in Brazil. We combine a randomized control trial with online surveys to study these questions.
Across developing economies, cash is the conduit for retail transactions. Policymakers, multinational product manufacturers and marketers of electronic payment systems are interested in understanding how to stimulate the growth of electronic payments in emerging markets. In this paper, we investigate what hinders the adoption of e-payment technology by traditional retailers, in particular, whether barriers to adoption are technological, informational or financial in nature.
. A randomized experiment is conducted a in Nigeria to test the relative effectiveness of these different approaches in improving business practices.
Psychological safety (PsyS) is an important driver of teams’ performance and organizations are keen to foster it. However, there is little causal evidence on what drives it and how to increase it. This paper implements a randomized control trial with over 1000 teams (over 7000 employees) in a global healthcare company to evaluate the impact of individualized attention of the manager to each team member team by encouraging managers to hold frequent 1-to-1 meetings and to focus them on mechanisms expected to increase PsyS.
Interference across competing firms in RCTs can be informative about market structure. An experiment that subsidizes a random subset of traders who buy cocoa from farmers in Sierra Leone illustrates this idea. Interpreting treatment-control differences in prices and quantities purchased from farmers through a model of Cournot competition reveals differentiation between traders is low. Combining this result with quasi-experimental variation in world prices shows that the number of traders competing is 50 percent higher than the number operating in a village.
We examine the influence of physical proximity on between-startup knowledge spillovers at one of the largest technology co-working hubs in the United States. Relying on the random assignment of office space to the hub's 251 startups, we find that proximity positively influences knowledge spillovers as proxied by the likelihood of adopting an upstream web technology already used by a peer startup.
This paper studies the impact of business modernization on the sales performance of traditional retailers. We define modernization as adopting tangible structures and business practices of organized retail chains (for example, exterior signage with store name and logo, or a database to record product-level information). To address our research question, we implement a randomized field experiment in Mexico City with 1148 traditional retail firms.
We examine how the behavior of software developers changes in response to removing gamification elements from GitHub, an online platform for collaborative programming and software development. We find that the unannounced removal of daily activity streak counters from the user interface (from user profile pages) was followed by significant changes in behavior. Long-running streaks of activity were abandoned and became less common. Weekend activity decreased and days in which developers made a single contribution became less common.
We experimentally study the impact of substantially larger enterprise loans, in collaboration with an Egyptian lender. Larger loans generate small average impacts, but machine learning using psychometric data reveals dramatic heterogeneity. Top-performers (i.e., those with the highest predicted treatment effects) substantially increase profits, whereas profits for poor-performers drop. The magnitude of this difference implies that an individual lender’s credit allocation choices matter for aggregate income.
Design thinking remains mired in controversy. Its proponents claim that it enhances not just confidence but also creativity, while the opponents question whether it does anything beyond building unfounded confidence. To bring rigorous evidence to this debate, we designed a randomised field experiment amongst school children served by a major non-governmental organisation in rural India.
This study asks why more small firms in developing countries do not use the market for professional business services like accounting, marketing, and human resource specialists and asks how this could be altered.
The Small Business Administration (SBA) aims to restore small business revenue and sustain jobs after disasters. SBA is interested in understanding the impact of community-based approaches to help small businesses respond and recover to the COVID-19 pandemic. In spring 2020, the Dallas City Council used CARES Act funding to set up the Small Business Continuity Fund (SBCF) to help small businesses affected by the economic fallout from the COVID‐19 pandemic.
This trial measures the impact of an edutainment program specifically designed to promote entrepreneurship among young adult viewers in Egypt.
This randomised experiment tested the impact of exogenously inducing higher financial aspirations among poor entrepreneurs.
This experiment tests the impact of a program with the main goal of helping firms to attract new customers, expand markets, adapt their business model, and bounce back from the COVID-19 pandemic by boosting demand for their products.
This paper studies the role of diversity and performance in the entrepreneurial teams.
Do capital grants improve microenterprise productivity? We use the lens of a production function to re-examine two previous randomised controlled trials that allocated capital to microenterprises. We find that productivity is higher for treated firms, and accounts for about 20-30 percent of the revenue effects of capital grants. Although long-run estimates are noisy, point estimates indicate that these productivity effects are sustained six years after the grants.
This project evaluated the impact of a program aiming to improve the workplace climate in corporations.
This paper studies the medium-term impacts of the Skills for Effective Entrepreneurship Development (SEED) program, an innovative in-residence 3-week mini-MBA program for high school students modeled after western business school curricula and adapted to the Ugandan context.
This project aims to understand the determinants of adoption of a new technology by firms in Bangladesh's leather goods and footwear industry.
This study assesses, via a field experiment, how a comprehensive teacher training program affects the delivery of a major entrepreneurship curriculum reform in Rwanda. The reform introduced interactive pedagogy and a focus on business skills in the country’s required upper secondary entrepreneurship course. Both groups received the government’s standard training. In addition, the treatment group was assigned intensive training organized by an NGO for two years.
A randomised controlled trial has been performed in which 580 randomly selected pupils (aged 14-15) have been randomly assigned to participate in online programmes that focus either on entrepreneurship or on environmental issues. . The short-term results show that the programme focusing on entrepreneurship had a significantly positive influence on the participants’ entrepreneurial intentions, venture creation self-efficacy, entrepreneurial attitudes and perceived knowledge about entrepreneurship
The use of machine learning (ML) for productivity in the knowledge economy requires considerations of important biases that may arise from ML predictions. We define a new source of bias related to incompleteness in real time inputs, which may result from strategic behavior by agents. We theorize that domain expertise of users can complement ML by mitigating this bias. Our observational and experimental analyses in the patent examination context support this conjecture.
Many have advocated for the expansion of peer review to improve scientific judgments in law and public policy. One such test case is the patent examination process, with numerous commentators arguing that scientific peer review can solve informational deficits in patent determinations. We present results from a novel randomized field experiment, carried out over the course of three years, in which 336 prominent scientific experts agreed to provide input on U.S. patent applications. Their input was edited for compliance with submission requirements and submitted to the U.S.