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This book provides researchers, students, and practitioners with a
methodology to evaluate the impacts of a wide diversity of
development projects and policies on local economies. Projects and
policies often create spillovers within project areas. LEWIE uses
simulation methods to quantify these spillovers. It has become a
complement to randomized control trials (RCTs), as governments and
donors become interested in documenting impacts beyond the treated,
comparing the likely impacts of alternative interventions, and
designing complementary interventions to influence program and
policy impacts. It is also a tool for impact evaluation where RCTs
are not feasible. Chapters 1-4 motivate and present the basics of
impact simulation, including how to design a LEWIE model, how to
estimate the model, and how to obtain the necessary data. The
remaining chapters provide a diversity of interesting real-world
applications and extensions of the basic models. The applications
include evaluations of the impacts of cash transfers for the poor,
ecotourism, global food-price shocks, irrigation projects,
migration, and corruption. Each chapter provide readers with the
tools they need to conduct their own local economy-wide impact
evaluations. All models and data used in this book are available
on-line.
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