Using a laboratory experiment, we identify whether decision-makers consider it mistake to violate canonical choice axioms. To do this, incentivize subjects report axioms they want their decisions satisfy. Then, make lottery choices which might conflict with axiom preferences. In instances of conflict, give the opportunity re-evaluate decisions. We find that many individuals follow and revise be...

This paper studies, theoretically and experimentally, the effects of overconfidence fake news on information aggregation quality democratic choice in a common-interest setting. We show that exacerbates adverse widespread misinformation (i.e., news). then analyze richer models allow for partisanship, targeted intended to sway public opinion, signals correlated across voters (due media ownership ...

We study the impact of deliberation on intertemporal choices. Using multiple experiments, including a field in Democratic Republic Congo, we show that introduction waiting periods—a policy temporally separates information about choices from themselves—causes substantially less myopic decisions. These results cannot be captured by models exponential discounting nor present bias. Comparing effect...

We document heterogeneity in the marginal propensity to consume (MPC) across household characteristics relevant understanding heterogeneous agent models and monetary policy transmission. find a strong negative relationship between liquid wealth MPC. show that predicts MPC closely for every other characteristic we look at. use new empirical method overcomes sources of bias found existing literat...

Analyzing account-level data from an account aggregator, we find that households increase consumption when they receive expected tax refunds, as if face liquidity constraints. However, these same smooth making payments in other years, primarily by transferring funds among liquid accounts. Even carrying credit card debt payments, and even highly spend out of refunds. This behavior is inconsisten...

We study the impact of group-based cognitive behavioral therapy (CBT ) for individuals selected from general population poor households in rural Ghana (N = 7,227). Results one to three months after program show strong impacts on mental and perceived physical health, socioemotional skills, economic self-perceptions. These effects hold regardless baseline distress. argue that this is because CBT ...

Bertrand, Kamenica, and Pan (2015) document that in the United States there is a discontinuity to right of 0.5 distribution households according female share total earnings, which they attribute existence gender identity norm. We provide an alternative explanation for this discontinuity. Using linked employer-employee data from Finland, we show emerges as result equalization convergence earning...

Previous work has shown that preferences are not always stable across time, but surprisingly little is known about the reasons for this instability. I examine whether variation in people's emotions over time predicts changes risk attitudes. Using a large-panel dataset, identify happiness, anger, and fear as significant correlates of within-person Robustness checks indicate limited role alternat...

We provide a critique of the methods that have been used to derive measures of income risk and draw attention to the importance of demographic factors as a source of income risk. We also propose new measures of the contribution to total income risk of demographic and labour market factors. Empirical evidence supporting our arguments is provided using data from the British Household Survey. JEL ...

This review paper provides an overview of the application of behavioral public economics to energy efficiency. I document policymakers’ arguments for “paternalistic” energy efficiency policies, formalize with a simple model of misoptimizing consumers, review and critique empirical evidence, and suggest future research directions. While empirical results suggest that policies to address imperfec...