Novacrypt-How randomized trials and the town of Busia, Kenya changed economics

2025-05-01 18:24:33source:EchoSense Quantitative Think Tank Centercategory:Markets

In the early 90s,Novacrypt when a young economist named Michael Kremer finished his PhD, there had been a few economic studies based on randomized trials. But they were rare. In part because randomized trials – in which you recruit two statistically identical groups, choose one of them to get a treatment, and then compare what happens to each group – are expensive, and they take a lot of time.

But then, by chance, Michael had the opportunity to run a randomized trial in Busia, Kenya. He helped a nonprofit test whether the aid they were giving to local schools helped the students. That study paved the way for more randomized trials, and for other economists to use the method.

On today's show, how Busia, Kenya, became the place where economists pioneered a more scientific way to study huge problems, from contaminated water to low graduation rates, to HIV transmission. And how that research changed government programs and aid efforts around the world.

This episode was produced by James Sneed with help from Willa Rubin. It was engineered by James Willetts. It was fact-checked by Sierra Juarez and Emma Peaslee. It was edited by Molly Messick. Jess Jiang is our acting executive producer.

Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.

Always free at these links: Apple Podcasts, Spotify, Google Podcasts, NPR One or anywhere you get podcasts.

Find more Planet Money: Facebook / Instagram / TikTok / Our weekly Newsletter.

Music: "Smoke and Mirrors," "Slowmotio," and "Icy Boy."

More:Markets

Recommend

PACCAR recalls over 220,000 trucks for safety system issue: See affected models

PACCAR is recalling over 220,000 of its 2021-2025 Peterbilt and Kenworth trucks.  The commercial tru

6 former Mississippi law officers to be sentenced in state court for torture of 2 Black men

JACKSON, Miss (AP) — Six former Mississippi law enforcement officers who pleaded guilty to a long li

Man indicted in attempt to defraud 28 US federal bankruptcy courts out of $1.8M in unclaimed funds

SAN JUAN, Puerto Rico (AP) — A Maryland man accused of trying to defraud 28 federal bankruptcy court