An important benefit of an economic design approach to solving difficult policy problems is a focus on evaluation. The CMD engages in rigorous evaluation techniques throughout the life of a project. This can include testing approaches in a controlled laboratory setting, prior to implementation, and using advanced econometric techniques to yield the best possible information from small pilots and field trials to inform future policy.
The CMD uses experimental laboratory techniques to test and adapt identified mechanisms. As part of this process, real people are paid real money to participate in experimental sessions that test the efficiency and effectiveness of designed policy mechanisms. Experimental economics sessions are used to:
-test-bed and fine-tune design features of policy mechanisms
-rehearse implementation of unfamiliar policy mechanisms
-reduce the risks associated with implementing the identified design mechanisms.