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> Rupert Scofield, who runs FINCA, one of the largest and most prominent microlenders, said randomized controlled trials work well in medicine but don’t make se
by bendykstra 11y ago
> Rupert Scofield, who runs FINCA, one of the largest and most prominent microlenders, said randomized controlled trials work well in medicine but don’t make sense in evaluating development aid. He said that for years, his response to claims like Duflo’s was to say he didn’t need data when he could see the effect firsthand.
It sounds like he is suffering cognitive dissonance. He believes in RCTs and he believes in microlending. To resolve the conflict, he rationalizes first that RCTs "don't make sense" in the microlending world. Next he decides that researchers themselves aren't credible as good researchers would not reach a "false" conclusion.
- deleted 11y ago[deleted]
- heimatau 11y agoI agree with this perspective but why doesn't he ask for additional research to be done. If he's belief is valid based on what he sees, then maybe six is too small a sample size.
- Dwolb 11y agoNow I'm confused because FINCA themselves launch studies to understand their impact. Shouldn't they be countering data-based arguments with data-based arguments? From the article they link to FINCA's own internally developed study [1] which at first glance seems to have reasonable metrics [2]. Why not use those to assess whether you believe independent research methods and data were properly developed and analyzed? As a side note, I like how AQR handles similar criticisms and releases Cliff's Perspectives [3] which use data and logic to evaluate arguments for or against their own or competitive portfolio strategies. [1] http://www.finca.org/files/2015/06/FINCA-MasterCard-From-Intentions-to-Outcomes-FINAL.pdf http://www.finca.org/files/2015/06/FINCA-MasterCard-From-Int... [2] http://imgur.com/eaUGNCH http://imgur.com/eaUGNCH [3] https://www.aqr.com/cliffs-perspective https://www.aqr.com/cliffs-perspective