Problem Set 4: Using contests to promote coordinated control of invasive species

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Problem Set 4: Using contests to promote coordinated control of invasive species: a partial replication of Meyer, Santos and Kousonsavath (2022).

This exercise asks you analyse the data from a clustered randomized trial aimed at evaluating the impact of using incentives to reduce economic damage due to a pest (in this case, rodents). The results are described in Meyer, Santos and Kousonsavath (2022), Using contests to promote coordinated control of invasive species: an experimental evaluation , Journal of Environmental Economics and Management, 113, 102630, which is also available in the folder for this Problem Set. The Appendix to this paper is available online.

Data is available in the file RC_data.dta. Variables are labelled, and should be self-explanatory. Feel free to ask any questions about the data before you start the analysis. You won’t be asked to replicate the genera equilibrium effects (prices), so that data is not included. Notice that the data is in long format (ie, two observations per household, one at baseline, the other at endline).

The objective of this exercise is to “replicate” the analysis leading to the results presented in Tables 4 & 5, with a few additional questions that are not addressed in the original paper.

Marking criteria: To get full marks, you need to:

a) Address any threats to the validity of the randomised design [suggestion: when replicating Table 2, restrict the analysis to the baseline round]

b) Justify the choice of your econometric specification (including the definition of the treatment variable, and the way you estimate the correct s.e.)

c) Succinctly discuss the main results

d) Estimate the spillovers from this contest.

If you are enrolled in BEX5479, you must answer the next question for full marks. If you are enrolled in ECX5479, you can answer the next question for extra marks.

e) Explain whether you find any evidence that changing male children’s labour allocation to rodent control may have contributed to reductions in damage (note: this is not addressed in the original paper)

Format: no more than 4 pages (including any tables, appendices and references but excluding code), in Calibri, size 12, 1 ½ spaces. Submissions that do not adhere to this format will not be marked. Unnecessary long explanations, that rely on repeating my slides, will be heavily penalized.

Deadline for submission: 24 May 2021, although late submissions without penalty will be accepted until 31 May (23:55), after which no submission will be accepted.