In the early 90s, when a young economist named Michael Kremer finished his PhD, there had been a few economic studies based on randomized trials. But they were rare. In part because randomized trials – in which you recruit two statistically identical groups, choose one of them to get a treatment, and then compare what happens to each group – are expensive, and they take a lot of time.But then, by chance, Michael had the opportunity to run a randomized trial in Busia, Kenya. He helped a nonprofit test whether the aid they were giving to local schools helped the students. That study paved the way for more randomized trials, and for other economists to use the method. On today's show, how Busia, Kenya, became the place where economists pioneered a more scientific way to study huge problems, from contaminated water to low graduation rates, to HIV transmission. And how that research changed government programs and aid efforts around the world. This episode was produced by James Sneed with help from Willa Rubin. It was engineered by James Willetts. It was fact-checked by Sierra Juarez and Emma Peaslee. It was edited by Molly Messick. Jess Jiang is our acting executive producer.Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy

Michael Kremer is best known for his academic work researching global poverty, for which he was awarded the Nobel Prize in 2019 along with Esther Duflo and Abhijit Banerjee. Less known is that he is also the founder of five non-profits and in the process of creating a sixth. And Kremer doesn’t see anything unusual about embodying the dual archetypes of economist and founder. “I think there's a lot of relationship between the experimental method and the things that are needed to help found organizations,” he explains. Michael joined Tyler to discuss the intellectual challenge of founding organizations, applying methods from behavioral economics to design better programs, how advanced market commitments could lower pharmaceutical costs for consumers while still incentivizing R&D, the ongoing cycle of experimentation every innovator understands, the political economy of public health initiatives, the importance of designing institutions to increase technological change, the production function of new technologies, incentivizing educational achievement, The Odyssey as a tale of comparative development, why he recently transitioned to University of Chicago, what researchers can learn from venture capitalists, his current work addressing COVID-19, and more. Read a full transcript enhanced with helpful links, or watch the full video. Recorded September 9th, 2020 Other ways to connect Follow us on Twitter and Instagram Follow Tyler on Twitter  Email us: cowenconvos@mercatus.gmu.edu Subscribe at our newsletter page to have the latest Conversations with Tyler news sent straight to your inbox.