318 | Edward Miguel on the Developing Practice of Development Economics

What It Covers

Edward Miguel discusses development economics research in Sub-Saharan Africa, demonstrating how randomized controlled trials prove cash transfers, deworming programs, and targeted interventions dramatically improve health outcomes and economic prosperity in poor countries.

Key Questions Answered

• •Deworming Cost-Effectiveness: Treating intestinal worm infections costs under one dollar per child annually, increases school attendance significantly, and generates 10% higher adult earnings decades later—demonstrating extraordinary return on investment for health interventions in developing regions.
• •Cash Transfer Multipliers: One-time transfers of $1,000 to poor Kenyan households generate economic multipliers exceeding the initial amount because recipients spend 90% immediately, stimulating local businesses and employment while reducing infant mortality by 40% in recipient areas.
• •Temperature and Social Behavior: Laboratory experiments in Nairobi show people in rooms heated to 30°C (86°F) exhibit 50% higher antisocial behavior, destroying others' payoffs more frequently, suggesting climate warming may increase conflict risk by 40% globally over coming decades.
• •Cultural Persistence Measurement: UN diplomats from high-corruption countries accumulate significantly more unpaid parking tickets in New York City than diplomats from low-corruption nations, demonstrating cultural norms persist even when individuals relocate to different institutional environments with enforcement mechanisms.
• •Long-Term Study Design: Following 6,000 Kenyan participants for 27 years with 83-84% response rates across treatment and control groups enables measurement of intervention effects on lifetime earnings, migration patterns, and occupational choices—revealing impacts invisible in short-term evaluations.