This chapter discusses the major contributions of local economy-wide impact evaluation (LEWIE) and contemplates its future role in impact evaluation studies. Evaluations focusing on treatment and control groups, when feasible, are essential; however, they provide an incomplete picture of total impacts and are not an option for impact evaluation in most instances. LEWIE fills this void in impact evaluation while documenting spillovers and total impacts that, in most cases, significantly exceed the direct impacts of government programs, policies, and other interventions. It also offers a new way to think about, and design, policies and programs, as well as a means to document impacts that may be critical to securing funding for development projects.
Keywords: impact evaluation, project evaluation, policy analysis, general equilibrium, spillover, project design, cost-benefit analysis, project appraisal, randomized control trial, development project
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