AlibomicsMoney and Economics
CONCEPT LESSON

External validity

The extent to which a study’s findings apply to other people, settings or times.

Why it matters

A finding can be credible where it was measured but less useful elsewhere. Before applying it, compare the people, institutions, conditions and time period.

A worked example

A savings reminder tested among salaried workers may have a different effect among workers with irregular income. The context of application matters.

Illustrative example · simplified assumptions

A common mistake

Applying a study everywhere without checking the population and context.

Where the idea needs care

A well-identified effect in one setting need not transfer unchanged to another. This is distinct from identifying the original causal effect.

Apply the idea

Explain this concept using a different example from your spending, work, business or a policy debate. State what stays fixed and what could change the result.

CHECK YOUR UNDERSTANDING
Which question is about external validity?

Read the answer and explanation

Will this finding transfer to another setting?. A well-identified effect in one setting need not transfer unchanged to another. This is distinct from identifying the original causal effect.

See the supporting infographicExternal validity: The extent to which a study’s findings apply to other people, settings or times.

The written explanation above is the main lesson. This image offers another way to remember it.

Sources and further study

Examples and explanations by Alibomics. Numeric illustrations are not current market quotations.