Cluster-RCT analysis of a Kenyan enterprise program. Covers power analysis, ITT, IV/2SLS, matching estimators, randomization inference (500 simulations), Lee Bounds, and cost-benefit analysis.
# rct-analysis-kenya-enterprise
Cluster-RCT analysis of a Kenyan enterprise program. Covers power analysis, ITT, IV/2SLS, matching estimators, randomization inference (500 simulations), Lee Bounds, and cost-benefit analysis.
# Cluster-Randomized Trial Analysis: Kenya Enterprise Program
## GPEC 464 — Designing Field Experiments | UC San Diego GPS
## Overview
This project analyzes a two-round cluster-randomized trial of an entrepreneurship
training program in rural Kenya. The analysis covers the full lifecycle of an RCT
evaluation: power analysis at the design stage, balance testing, ITT and ToT estimation
via IV and matching, randomization inference, heterogeneous treatment effects, Lee
Bounds under differential attrition, and cost-benefit analysis.
## Research Question
Does a village-level entrepreneurship training program increase monthly earnings for
participants in rural Kenya?
## Data
- **Design:** Cluster-randomized trial, treatment assigned at the village level
- **Sample:** 804 individuals across 168 villages, 2 rounds (baseline + endline)
- **Outcome:** Monthly earnings in Kenyan Shillings (Ksh)
- **Treatment:** Binary — offered training (ITT) / received training (ToT)
- **Covariates:** Baseline earnings, trusting, risk amount, age, urban status,
highest grade completed
- **Compliance:** One-sided non-compliance; uptake rate = 38.6% among offered
## Methods & Key Results
### Power Analysis (Pre-Treatment)
- J = 168 villages, n ≈ 4.79 per cluster, ICC = 0.056
- MDE at 80% power: 1,028 Ksh/month without covariates; 982 Ksh/month with covariates
- Covariate adjustment (R² = 0.088) provides only modest precision gain
### Balance Testing
- Two-sample t-tests on six baseline covariates
- No covariate significant at 5% level — randomization is balanced
### ITT Estimation
- Simple OLS: 1,774 Ksh/month (p = 0.133)
- ANCOVA (with baseline covariates): 1,744 Ksh/month (p = 0.121)
- Insignificance driven by low uptake diluting the ITT across compliers and never-t …