Essay

Evaluating Research Methods for Economic Policy

A city government wants to determine if a small, monthly cash subsidy for low-income families effectively increases their use of public transportation. They are considering two research proposals:

  1. Proposal A: Recruit participants to a university lab. Provide them with a simulated budget and have them make hypothetical choices about transportation based on different scenarios, including one with the subsidy.

  2. Proposal B: Randomly select a group of low-income families in the city to receive the actual cash subsidy for six months. Track their real transit card usage and compare it to a similar group of families who do not receive the subsidy.

Evaluate the two proposals. In your evaluation, discuss the potential strengths and weaknesses of each approach in providing trustworthy evidence to guide the city's policy decision. Conclude with a recommendation for which proposal the city should choose and why.

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Updated 2025-07-20

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Economics

Economy

Introduction to Microeconomics Course

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CORE Econ

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