By Philip K. Robins
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Additional info for A Guaranteed Annual Income. Evidence from a Social Experiment
2. In this figure a preexperimental budget line AE is depicted along with an NIT treatment, ACF, with support level EF. These budget lines depict the trade-offs between work (or leisure) and disposable income. First, consider a person initially located at point E prior to the initiation of the experiment. 12 Similarly, consider someone above the breakeven level at a position like B. Although he might respond, the probability of a response is low and persons sufficiently far above the breakeven level will not respond.
The remainder of the sample was divided among several experimental treatments, and were known as expérimentais. The key advantage of such a procedure arises from the randomness of the assignment to experimental and control status. , when it does not depend on any characteristics of the individual, controls and expérimentais can be assumed to be identical on average, apart from the effect of the experimental treatment. Thus, any difference between the expérimentais and the controls can be presumed to result from the experimental treatment.
The small mean differences which we find are overwhelmingly in the expected directions. That is, all but one of the ί-statistics are negative, indicating underre porting to SIME/DIME relative to the public agency source, or underreporting on the IRF relative to the periodic interview. The differences are statistically significant in 9 of the 30 comparisons, with the largest and most significant dif ferences occurring between the IRF and the public agency reports.
A Guaranteed Annual Income. Evidence from a Social Experiment by Philip K. Robins