Charles Sturt University, 2014 · World Economic Forum (Davos) – Top 10 Global Risks, 2014 . 1....
Transcript of Charles Sturt University, 2014 · World Economic Forum (Davos) – Top 10 Global Risks, 2014 . 1....
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Advancing Public Policy. An agenda for applied statistics and the social sciences Charles Sturt University, 2014
Peter Davis University of Auckland [email protected] and COMPASS Research Centre www.compass.auckland.ac.nz
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Outline
The social sciences and public policy
Making knowledge claims
Improving our methods Inference by design Making it count Virtues of the virtual
Concluding thoughts “Public” social science Applied statistics
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World Economic Forum (Davos) – Top 10 Global Risks, 2014
1. Fiscal crises 2. Unemployment 3. Water crises 4. Income disparity 5. Climate change
6. Extreme weather 7. Governance failure 8. Food crises 9. Financial failure 10. Political/social
instability
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Role of the Social Sciences – 40 Years
• Gibson report (1970) – “recommended that the Council develop a social
science arm to foster development of research activity” (Neil Lunt PhD Thesis, 2004, p. 20)
• Gluckman discussion paper (2011, p.15)
– “Social science is not well constituted within the New Zealand science system and across or within those ministries and agencies that need such information to develop policy options”.
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National Science Foundation, 2012
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The
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Outline
The social sciences and public policy
Making knowledge claims
Improving our methods Inference by design Making it count Virtues of the virtual
Concluding thoughts “Public” social science Applied statistics
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These Books Needed “Facts”!
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“Knowledge Claims” in Social Science – Some of the Issues
1. By its nature, social science detects patterns beyond everyday observation
2. “Common sense” can lead you astray
3. Common mistakes can be made in public debate (e.g. not comparing “like with like”)
4. Governments are looking for “evidence”
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1. Patterns “below the surface” – Death Rates by Occupational Class
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1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6
1975-1977 1985-1987 1995-1997Elley-Irving Elley-Irving NZSEI
RII=1.8 RII=2.1DeDa RII=2.3
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2. “Common sense” can be astray – Improving Driver Education
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3. Common mistakes in public debate
Gaps that are barely budging * Imprisonment rate - gaps may close in 1170 years.
Closing gaps favour young (NZ Herald) By Vaimoana Tapaleao, James Ihaka, Simon Collins, Harkanwal Singh 5:30 AM Monday Mar 17, 2014
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4. Governments and “evidence”
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Outline
Improving “our” methods Inference by design Making it count Virtues of the virtual
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Rationale of Handbook 1. Traditional statistical theory
mainly about representation not causation (i.e. sampling)
2. Statistical inference=>causal inference random assignment and manipulation of treatment conditions
3. Counterfactual/potential outcomes
conceptually bridges experimental/observational settings
4. Forward causation only cause-to-effect (e.g. impact of policy intervention)
5. Econometrics
a parallel community of policy practice (e.g. to public health)
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Five Background Papers • Counterfactual thinking
– Estimating the effects of potential public health interventions. Ahern et al. American Journal of Epidemiology 2009
• Statistical reasoning – Causal inference using potential outcomes. Rubin, Journal of the
American Statistical Association 2005 • Causal diagrams
– From causal diagrams to birth weight-specific curves of infant mortality. Hernandez-Diaz et al., European Journal of Epidemiology,8
• The econometric paradigm – How better research design is taking the con out of econometrics.
Angrist and Pischke, Journal of Economic Perspectives 2010 • Within-study comparisons
– Three conditions under which experiments and observational studies produce comparable causal estimates. Cook et al., Journal of Polic08
26 July 2103 16 Causal Inferences in Observatoinal Settings
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Rubin
26 July 2103 17 Causal Inferences in Observatoinal Settings
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Statistical Reasoning - Design and Decisions
• Science and design vs. analysis and decisions • Fisher never related his work on likelihoods and models to
his work on experimental design
• Neyman – potential outcomes of treatment • defines causal effects for both randomised and non-
randomised studies (“Neyman-Rubin” model)
• Causal inference and assignment mechanism • assigns treatments to units (randomised in experiments),
creating special type of missing data
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Angrist and Pischke
26 July 2103 19 Causal Inferences in Observatoinal Settings
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Econometrics - “Better” Research Design
• “take the con out of econometrics” (1985) • Leamer “Hardly anyone takes data analysis seriously.”
• Better research design – quasi-experimental
• Instrumental variables, regression discontinuity, differences-in-differences
• Has the design pendulum swung too far?
• Lack of external validity; ignore the big questions?
26 July 2103 20 Causal Inferences in Observatoinal Settings
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Five Exemplar Papers • Matching/Propensity scores
– Does arrest really deter wife battery?, Berk and Newton American Sociological Review 1985
• Using panel data – Does marriage reduce crime? Sampson et al. Criminology 2006
• Fixed effects
– Income inequality and infant mortality. Avendano Social Science and Medicine 2012
• Instrumental variables – The colonial origins of comparative development. Acemoglu et
al. American Economic Review 2001 • A natural experiment
– Effects of prenatal poverty on infant health. Strully et al. American Sociological Review 2012
26 July 2103 21 Causal Inferences in Observatoinal Settings
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Sampson et al.
26 July 2103 22 Causal Inferences in Observatoinal Settings
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Using Panel Data - Marriage and Crime
• Does marriage reduce crime? • issues of selection and confounding
• Longitudinal data available on “high-risk” men
• within-individual analysis of role of marriage
• Do states of marriage causally inhibit crime?
• Yes – average 35% reduction compared to non-married
26 July 2103 23 Causal Inferences in Observatoinal Settings
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Sampson et al.
26 July 2103 24 Causal Inferences in Observatoinal Settings
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Avendano
26 July 2103 25 Causal Inferences in Observatoinal Settings
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Fixed Effects – Inequality and Mortality • Income inequality related to infant mortality
• Strong ecological association income inequality with infant mortality across countries - but is it causal?
• Fixed effects controls variation across countries
• Approach relies on changes in inequality within countries over time – 34 OECD countries over 38 years, Gini and IMR.
• Gini changes not associated with IMR changes
• Possible that social policies reducing IMR cluster in relatively egalitarian countries, but their effects are not via income.
26 July 2103 26 Causal Inferences in Observatoinal Settings
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Strully et al.
26 July 2103 27 Causal Inferences in Observatoinal Settings
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Natural Experiment – Welfare and Health
• Do work/income incentives affect infant health? • It is hypothesised that work/income schemes will raise
incomes and employment for unmarried mothers with high school or less, and in turn improve infant health.
• Using a “natural experiment” design
• Variation between US states in introduction of income/work incentives to estimate effects prenatal poverty/infant health.
• Labour market, incomes, birth weight, smoking
• Schemes increased employment 19%, incomes 32%, increased infant birth weight, slightly reduced smoking
26 July 2103 28 Causal Inferences in Observatoinal Settings
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Outline
Improving “our” methods Inference by design Making it count Virtues of the virtual
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The Problem – British Academy
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The Solution – “Nuffield Initiative”
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Outline
Improving “our” methods Inference by design Making it count Virtues of the virtual
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Assessing policy counterfactuals with a simulation-based inquiry system.
Peter Davis and Colleagues COMPASS Research Centre University of Auckland New Zealand www.compass.auckland.ac.nz
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DISCLAIMER: Access to the data used in this study was provided by Statistics New Zealand under conditions designed to give effect to the security and confidentiality provisions of the Statistics Act 1975. The results presented in this study are the work of the author, not Statistics New Zealand.
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Presentation Outline • Assessing counterfactuals
– A simulation approach
• A knowledge-based inquiry system – Grounded in real data – Permitting counterfactual modelling
• Social Determinants of Health
– Case study
• Conclusion
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Assessing counterfactuals
Counterfactual paradigm of causal reasoning If the putative causal factor had not been present, we would not have observed the recorded outcome.
• Randomised Controlled Trials (RCTs)
• Experimental and quasi-experimental methods
• Observational designs and statistical analysis
Simulation techniques
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Inquiry system
Knowledge-based inquiry system
1. A synthetic base file representative of the population
2. A number of real-world longitudinal studies
3. A technique for combining the data from 4 studies
4. A statistical model mimicking life-course biographies
5. A tool that helps interrogation of these biographies 38
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Inquiry Tool (due to Barry Milne)
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The
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Outline
The social sciences and public policy
Making knowledge claims
Improving our methods Inference by design Making it count Virtues of the virtual
Concluding thoughts “Public” social science Applied statistics
40
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“To Know the Causes of Things”
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Organisational model for “Public Practice of Professional Social Science”
Creating Knowledge
Engaging Communities
Building Skills
COMPASS Advisory
Board
Sharing Data
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Handbook – Implications? 1. Traditional statistical theory
mainly about representation not causation (i.e. sampling)
2. Statistical inference=>causal inference random assignment and manipulation of treatment conditions
3. Counterfactual/potential outcomes
conceptually bridges experimental/observational settings
4. Forward causation only cause-to-effect (e.g. impact of policy intervention)
5. Econometrics
a parallel community of policy practice (e.g. to public health)
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Advancing Public Policy. An agenda for applied statistics and the social sciences Charles Sturt University, 2014
Peter Davis University of Auckland [email protected] and COMPASS Research Centre www.compass.auckland.ac.nz