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Spillovers from targeting of incentives: Exploring responses to being excluded
Environment for Development Center for Central America, CATIE, Turrialba, Costa Rica.
Department of Economics, University of Gothenburg, Gothenburg, Sweden.
Duke University, Sanford School of Public Policy, Durham, NC, United States.
Environment for Development Center for Central America, CATIE, Turrialba, Costa Rica.
2017 (English)In: Journal of Economic Psychology, ISSN 0167-4870, E-ISSN 1872-7719, Vol. 59, p. 87-98Article in journal (Refereed) Published
Abstract [en]

A growing set of policies involve transfers conditioned upon socially desired actions, such as attending school or conserving forest. However, given a desire to maximize the impact of limited funds by avoiding transfers that do not change behavior, typically some potential recipients are excluded on the basis of their characteristics, their actions or at random. This paper uses a laboratory experiment to study the behavior of individuals excluded on different bases from a new incentive that encourages real monetary donations to a public environmental conservation program. We show that the donations from the individuals who were excluded based on prior high contributions fell significantly. Yet the rationale used for exclusion mattered, in that none of the other selection criteria used as the basis for exclusion resulted in negative effects on contributions. 

Place, publisher, year, edition, pages
Elsevier, 2017. Vol. 59, p. 87-98
Keywords [en]
Behavioral economics, Economic experiments, Monetary incentives, Spillovers, Targeting
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-41576DOI: 10.1016/j.joep.2017.02.007ISI: 000400232000006Scopus ID: 2-s2.0-85013634600OAI: oai:DiVA.org:hj-41576DiVA, id: diva2:1250965
Available from: 2018-09-25 Created: 2018-09-25 Last updated: 2018-09-25Bibliographically approved

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Nordén, Anna

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