{"title":"The Case for Randomised Trials (and Why Big Data Does Not Supersede Randomisation)","authors":"Andrew Leigh","doi":"10.1111/1467-8462.70003","DOIUrl":null,"url":null,"abstract":"<div>\n \n \n <section>\n \n <h3> Research Question/Issue</h3>\n \n <p>With the growing availability of large-scale datasets, is randomisation still necessary for identifying causal impacts?</p>\n </section>\n \n <section>\n \n <h3> Research Findings/Insights</h3>\n \n <p>Randomised trials, by using luck to assign participants to treatment and control groups, reliably provide a credible counterfactual that ensures observed differences reflect causal impacts. In contrast, observational data often produces misleading correlations that fail to replicate under experimental conditions. Therefore, the increased availability of big data does not make randomisation obsolete.</p>\n </section>\n \n <section>\n \n <h3> Practitioner/Policy Implications</h3>\n \n <p>I propose five approaches to increase the quality and quantity of randomised policy trials: encourage curiosity in yourself and those you lead; seek simple trials, especially at the outset; ensure experiments are ethically grounded; foster institutions that push people towards more rigorous evaluation; and collaborate internationally to share best practice and identify evidence gaps.</p>\n </section>\n \n <section>\n \n <h3> Methods Used</h3>\n \n <p>This paper employs a qualitative synthesis of historical and contemporary examples, illustrating the superiority of randomised trials over purely observational methods. By drawing comparisons across disciplines—economics, health, and social policy—it highlights how nonexperimental approaches can fall short and explores how big data can be a complement to rigorous randomised trials.</p>\n </section>\n </div>","PeriodicalId":46348,"journal":{"name":"Australian Economic Review","volume":"58 3","pages":"251-258"},"PeriodicalIF":1.0000,"publicationDate":"2025-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Australian Economic Review","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1467-8462.70003","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Research Question/Issue
With the growing availability of large-scale datasets, is randomisation still necessary for identifying causal impacts?
Research Findings/Insights
Randomised trials, by using luck to assign participants to treatment and control groups, reliably provide a credible counterfactual that ensures observed differences reflect causal impacts. In contrast, observational data often produces misleading correlations that fail to replicate under experimental conditions. Therefore, the increased availability of big data does not make randomisation obsolete.
Practitioner/Policy Implications
I propose five approaches to increase the quality and quantity of randomised policy trials: encourage curiosity in yourself and those you lead; seek simple trials, especially at the outset; ensure experiments are ethically grounded; foster institutions that push people towards more rigorous evaluation; and collaborate internationally to share best practice and identify evidence gaps.
Methods Used
This paper employs a qualitative synthesis of historical and contemporary examples, illustrating the superiority of randomised trials over purely observational methods. By drawing comparisons across disciplines—economics, health, and social policy—it highlights how nonexperimental approaches can fall short and explores how big data can be a complement to rigorous randomised trials.
期刊介绍:
An applied economics journal with a strong policy orientation, The Australian Economic Review publishes high-quality articles applying economic analysis to a wide range of macroeconomic and microeconomic topics relevant to both economic and social policy issues. Produced by the Melbourne Institute of Applied Economic and Social Research, it is the leading journal of its kind in Australia and the Asia-Pacific region. While it is of special interest to Australian academics, students, policy makers, and others interested in the Australian economy, the journal also considers matters of international interest.