NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

From Natural Variation to Optimal Policy? The Lucas Critique Meets Peer Effects

Scott E. Carrell, Bruce I. Sacerdote, James E. West

NBER Working Paper No. 16865
Issued in March 2011

---- Acknowledgements -----

The views expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the United States Air Force, Department of Defense, the U.S. Government, or the National Bureau of Economic Research. This research was partially funded by the National Academy of Education and Spencer Foundation. Thanks to D. Staiger, R. Fullerton, R. Schreiner, B. Bremer, K. Silz-Carson. Note: An earlier version of this paper was circulated under the title, "Beware of Economists Bearing Reduced Forms? An Experiment in How Not To Improve Student Outcomes."

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