ISSN:
1573-6938
Keywords:
Randomization test
;
Monte Carlo simulation
;
C15
;
C90
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract Data created in a controlled laboratory setting are a relatively new phenomenon to economists. Traditional data analysis methods using either parametric or nonparametric tests are not necessarily the best option available to economists analyzing laboratory data. In 1935, Fisher proposed the randomization technique as an alternative data analysis method when examining treatment effects. The observed data are used to create a test statistic. Then treatment labels are shuffled across the data and the test statistic is recalculated. The original statistic can be ranked against all possible test statistics that can be generated by these data, and ap-value can be obtained. A Monte Carlo analysis oft-test, the Mann-WhitneyU-test, and the exact randomizationt-test is conducted. The exact randomizationt-test compares favorably to the other two tests both in terms of size and power. Given the limited distributional assumptions necessary for implementation of the exact randomization test, these results suggest that experimental economists should consider using the exact randomization test more often.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01426216
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