nep-exp New Economics Papers
on Experimental Economics
Issue of 2023‒10‒23
28 papers chosen by

  1. Monetary and moral incentives of behavioral interventions: Field experimental evidence from hotel guest energy efficiency programs By Toshi H. Arimura; Yukihiko Funaki; Hajime Katayama; Atsushi Morimoto; Hiroko Okajima; Shigeharu Okajima
  2. The E-Word – On the Public Acceptance of Experiments* By Mira Fischer; Elisabeth Grewenig; Philipp Lergetporer; Katharina Werner; Helen Zeidler
  3. Compliance and Accountability: Evidence from a Field Experiment in Argentina By Krakowski, Krzysztof; Ronconi, Lucas
  4. Increasing the Use of Telemedicine: A Field Experiment By González, María P.; Scartascini, Carlos
  5. Conditional Cash Transfers, Debit Cards and Financial Inclusion: Experimental Evidence from Argentina By Cruces, Guillermo
  6. Adaptive Neyman Allocation By Jinglong Zhao
  7. Measuring Labor Market Discrimination against LGTBQ+ in the Case of Ecuador: A Field Experiment By Hernández, Hugo; Quiroz, Gabriel; Zambrano, Omar; Zanoni, Wladimir
  8. Preaching to the Agnostic: Inflation Reporting Can Increase Trust in the Central Bank but Only among People with Weak Priors By Bernd Hayo; Pierre-Guillaume Méon
  9. Generation Next: Experimentation with AI By Gary Charness; Brian Jabarian; John A. List
  10. Hybrid parental training to foster play-based early childhood development: experimental evidence from Mexico By Berlanga, Cecilia; Näslund-Hadley, Emma; Fernández García, Enrique; Hernández Agramonte, Juan Manuel
  11. Humans versus Chatbots: Scaling-up behavioral interventions to reduce teacher shortages By Ajzenman, Nicolás; Elacqua, Gregory; Jaimovich, Analia; Pérez-Nuñez, Graciela
  12. Serving consumers in an uncertain world: A credence goods experiment By Loukas Balafoutas; Helena Fornwagner; Rudolf Kerschbamer; Matthias Sutter; Maryna Tverdostup
  13. Talking: Talking Shops By Lee-Whiting, Blake; Krashinsky, Lewis; Oldham, Robert; Roelofs, William
  14. Socioemotional Learning in Early Childhood Education: Experimental Evidence from the Think Equal Program’s Implementation in Colombia By Mateo-Berganza Díaz, María Mercedes; Näslund-Hadley, Emma; Cabra, Margarita; Vélez Medina, Laura Felizia
  15. The Effect of Classroom Rank on Learning throughout Elementary School: Experimental Evidence from Ecuador By Carneiro, Pedro; Cruz-Aguayo, Yyannu; Salvati, Francesca; Schady, Norbert
  16. Identifying Causal Effects in Information Provision Experiments By Dylan Balla-Elliott
  17. Double machine learning and design in batch adaptive experiments By Harrison H. Li; Art B. Owen
  18. Testing Source Influence on Ambiguity Reaction: Preference and Insensitivity By Lotito Gianna; Maffioletti Anna; Santoni Michele
  19. Willing but Unable to Pay?: The Role of Gender in Tax Compliance By López-Luzuriaga, Andrea; Scartascini, Carlos
  20. The State Capacity Ceiling on Tax Rates: Evidence from Randomized Tax Abatements in the DRC By Augustin Bergeron; Gabriel Z. Tourek; Jonathan L. Weigel
  21. Recruiters' Behaviors Faced with Dual (AI and human) Recommendations in Personnel Selection By Alain Lacroux; Christelle Martin Lacroux
  22. Polluting for (Higher) Profits: Does an Economic Gain Influence Moral Judgment of Environmental Wrongdoings? By Gilles Grolleau; Luc Meunier; Naoufel Mzoughi
  23. To tax or to ban? A discrete choice experiment to elicit public preferences for phasing out glyphosate use in agriculture By Amalie Bjørnåvold; Maia David; Vincent Mermet-Bijon; Olivier Beaumais; Romain Crastes Dit Sourd; Steven van Passel; Vincent Martinet
  24. Reducing Misinformation: The Role of Confirmation Frames in Fact-Checking Interventions By Aruguete, Natalia; Batista, Flavia; Calvo, Ernesto; Guizzo Altube, Matías; Scartascini, Carlos; Ventura, Tiago
  25. The Effect of Distance on the Moral Judgment of Environmental Wrongdoings By Gilles Grolleau; Lisette L. Ibanez; Naoufel Mzoughi
  26. The Robotic Herd: Using Human-Bot Interactions to Explore Irrational Herding By Verginer, Luca; Vaccario, Giacomo; Ronzani, Piero
  27. Can a Pay-for- Performance Program Help the Vulnerable find Jobs during a Pandemic?: Experimental Evidence from Empleate in Colombia By Gómez, Maria Fernanda; González-Velosa, Carolina
  28. Do individual PES buyers care about additionality and free-riding? A choice experiment By Oliver Frings; Jens Abildtrup; Claire Montagné-Huck; Salomé Gorel; Anne Stenger

  1. By: Toshi H. Arimura (Waseda University.); Yukihiko Funaki (Waseda University.); Hajime Katayama (Waseda University.); Atsushi Morimoto (North Asia University.); Hiroko Okajima (Nagoya University.); Shigeharu Okajima (Osaka University of Economics.)
    Abstract: The purpose of this study is to measure the pure conservation effect of moral incentives and investigate their potential to reduce energy conservation in non-household sectors. Focusing on the overlap between moral and economic incentives, we employ a field experiment at a hotel to separate moral incentives from economic incentives. We find that although the pure conservation effect of moral incentives was insignificant, moral incentives did reduce hotel guests’ electricity use by 10.3% when saved money in conservation was donated to an environmental protection organization. The result indicates that when we use moral incentives in non-household sectors, it is beneficial to spend saved money for environmental protection to gain people’s support for conservation requests.
    Keywords: Energy conservation, Moral incentive, Field experiment
    JEL: Q41 Q48 D12 D91 L94
    Date: 2023–07
  2. By: Mira Fischer (WZB Berlin); Elisabeth Grewenig (Kreditanstalt für Wiederaufbau (KfW)); Philipp Lergetporer (Technical University of Munich, CESifo and IZA); Katharina Werner (ifo Institute at the Ludwigs-Maximilians-University of Munich); Helen Zeidler (Technical University of Munich)
    Abstract: Randomized experiments are often viewed as the “gold standard” of scientific evidence, but people’s scepticism towards experiments has compromised their viability in the past. We study preferences for experimental policy evaluations in a representative survey in Germany (N>1, 900). We find that a majority of 75% supports the idea of small-scale evaluations of policies before enacting them at a large scale. Experimentally varying whether the evaluations are explicitly described as “experiments” has a precisely estimated overall zero effect on public support. Our results indicate political leeway for experimental policy evaluation, a practice that is still uncommon in Germany.
    JEL: I28 H40 C93
    Date: 2023–10
  3. By: Krakowski, Krzysztof; Ronconi, Lucas
    Abstract: Does compliance with low-cost civic duties increase demand for social accountability? We address this question by conducting a field experiment at train stations in Buenos Aires. We create exogenous variation in compliance with paying the public transportation fare by i) highlighting sanctions for non-compliance and ii) appealing to compliance norms whereby 90 percent of passengers pay the fare. We find that both sanctions and norms treatments raise compliance. However, only appeals to compliance norms make treated passengers more willing to sign a petition demanding quality public transportation serviceour measure of demand for social accountability. To probe the mechanisms explaining these patterns, we show that compliance invoked by adherence to norms makes subjects feel more entitled to demand accountability and trust the government to respect this right to a greater extent. Our findings suggest that raising compliance through appeals to social norms may thus have wider benefits for civic behaviors.
    Keywords: Compliance;accountability;Norms;Sanctions;Argentina
    JEL: D91 H26 O12
    Date: 2023–06
  4. By: González, María P.; Scartascini, Carlos
    Abstract: Patients are reluctant to use telemedicine health services. Telemedicine is an “experience good, ” one that can be accurately evaluated and compared to its substitute (in this case, in-person visits) only after the product has been adopted and experienced. As such, an intervention that increases the probability of a first experience can have lasting effects. This article reports the results of a randomized field experiment conducted in collaboration with a health insurance company in Argentina. During the intervention, about two thousand households with no previous experience with telemedicine received periodic e-mails with information about the available services. It effectively increased the take-up and demand for telemedicine. Within the first eight months of the experiment, patients assigned to the treatment group were 6pp more likely to have used the service at least once (12pp higher for those who opened at least one e-mail.) This first use led to large cumulative effects over time. After eight months, the number of virtual consultations by the treatment group was six times larger than those of the control group. These results provide additional evidence about how information interventions can increase technological take-up within the health sector and add to the understanding of how behavioral barriers affect patients resistance to technological adoption.
    Keywords: behavioral biases;Field experiment;Telemedicine;health
    JEL: I11 I13 D83 C93
    Date: 2023–05
  5. By: Cruces, Guillermo
    Abstract: Cash transfer and other social protection programs in developing countries have often been accompanied by measures to foster financial inclusion, such as the adoption and use of bank accounts and electronic means of payments. Argentina's social benefits are paid in bank accounts and accessed through debit cards. With the simultaneous objective of fostering formality among beneficiaries and stores, the use of debit cards for purchases has been incentivized by means of additional subsidies. We studied the low take-up of these extra benefits by means of a field experiment involving 400, 000 beneficiaries of Argentinas largest conditional cash-transfer program (with 2.2 million beneficiaries who are the parents of four million children, 40% of the countrys 0-17-year olds). By using their debit card to spend the allowance, rather than withdrawing cash from ATMs, they can receive a rebate of 15% of their expenditures. However, they systematically fail to claim this benefit: only about 25% of beneficiaries receive this transfer. Our experiment provided information about the effectiveness of an information campaign conducted via text messages or through on-screen messages at ATM machines. The campaign increased purchases with debit cards and subsequent rebates significantly but not substantially in the short run. However, beneficiaries who increased their use of debit cards do not exhibit a higher probability of having access to credit through the financial system, nor higher levels of formal employment. The results indicate that cultural factors (a preference for cash), administrative hassle and citizen security issues are relevant issues that limit the potential of financial inclusion through increased use of digital means of payment.
    Keywords: Take-up of social benefits;financial inclusion
    JEL: C93 H26 K34 K42 Z13
    Date: 2023–08
  6. By: Jinglong Zhao
    Abstract: In experimental design, Neyman allocation refers to the practice of allocating subjects into treated and control groups, potentially in unequal numbers proportional to their respective standard deviations, with the objective of minimizing the variance of the treatment effect estimator. This widely recognized approach increases statistical power in scenarios where the treated and control groups have different standard deviations, as is often the case in social experiments, clinical trials, marketing research, and online A/B testing. However, Neyman allocation cannot be implemented unless the standard deviations are known in advance. Fortunately, the multi-stage nature of the aforementioned applications allows the use of earlier stage observations to estimate the standard deviations, which further guide allocation decisions in later stages. In this paper, we introduce a competitive analysis framework to study this multi-stage experimental design problem. We propose a simple adaptive Neyman allocation algorithm, which almost matches the information-theoretic limit of conducting experiments. Using online A/B testing data from a social media site, we demonstrate the effectiveness of our adaptive Neyman allocation algorithm, highlighting its practicality even when applied with only a limited number of stages.
    Date: 2023–09
  7. By: Hernández, Hugo; Quiroz, Gabriel; Zambrano, Omar; Zanoni, Wladimir
    Abstract: This paper presents the findings of an artifactual field experiment conducted in urban Ecuador to investigate discrimination against LGBTQ (here restricted to individuals self-identified as gay or lesbian) job seekers in the labor market. Focusing on occupations and sectors where LGBTQ and non-LGBTQ individuals commonly apply, the study employed fictitious job applications evaluated by 394 human resource analysts. The results indicate that, on average, LGBTQ candidates did not face discrimination in terms of hiring recommendations, job fit assessments, or wage offers. However, a closer analysis reveals a gender-based differential treatment. Female LGBTQ candidates received positive discrimination, were more likely to be selected and offered higher wages compared to their heterosexual counterparts. In contrast, male LGBTQ candidates experienced negative discrimination and no wage differences with a lower likelihood of selection. The study found an influential role of female recruiters in driving these discriminatory behaviors. These findings contribute to our understanding of the complex dynamics of discrimination towards LGBTQ workers in the labor market and its interaction with gender.
    Keywords: discrimination;LGBTQ+;Employment;field experiments
    JEL: C9 J15 J16
    Date: 2023–07
  8. By: Bernd Hayo; Pierre-Guillaume Méon
    Abstract: Using a randomized controlled trial, we study whether showing German respondents a graph plotting the European Central Bank’s inflation target alongside inflation in the euro area from 1999 to 2017 affects respondents’ trust in the ECB. The treatment has, on average, no significant effect on the level of trust in the ECB respondents report, but trust increases among respondents who report no preference for any political party. Within this group, the information about the actual development of the inflation rate, and not information about the inflation target itself, appears to be the main driving force.
    Keywords: central bank trust, European Central Bank, central bank communication, monetary policy, Germany, household survey, RCT
    JEL: E52 E58 Z10
    Date: 2023
  9. By: Gary Charness; Brian Jabarian; John A. List
    Abstract: We investigate the potential for Large Language Models (LLMs) to enhance scientific practice within experimentation by identifying key areas, directions, and implications. First, we discuss how these models can improve experimental design, including improving the elicitation wording, coding experiments, and producing documentation. Second, we discuss the implementation of experiments using LLMs, focusing on enhancing causal inference by creating consistent experiences, improving comprehension of instructions, and monitoring participant engagement in real time. Third, we highlight how LLMs can help analyze experimental data, including pre-processing, data cleaning, and other analytical tasks while helping reviewers and replicators investigate studies. Each of these tasks improves the probability of reporting accurate findings.
    JEL: C0 C1 C80 C82 C87 C9 C90 C92 C99
    Date: 2023–09
  10. By: Berlanga, Cecilia; Näslund-Hadley, Emma; Fernández García, Enrique; Hernández Agramonte, Juan Manuel
    Abstract: Play during early childhood is key to stimulating childrens physical, social, emotional and cognitive development; it promotes their imagination and creativity, improves their problem-solving skills and enhances their learning readiness by providing the foundations to build skills later in their lives. Parental engagement in play-based learning at home is one of the behaviors most consistently associated with positive child development. However, it is concerning that levels of parental engagement in play activities have been found to be lower in low-resourced settings. Additionally, research on play-based learning is largely limited to high-income countries and little is known about the use of hybrid interventions that promote play-based learning at home. This study uses an experimental design to estimate the effects of a hybrid large-scale parental program to promote play-based learning in the state of Morelos, Mexico. We found a positive impact on parental investment, as caregivers of the treatment group had a FCI 0.13 SD higher than the control group. The treatment group performed the following activities more often than the control group: reading books /looking at pictures (0.12 SD), singing songs (0.11 SD), and playing with toys (0.17 SD), which incentivize learning, emotional and cognitive skills development in children. The study also found a significant effect of 0.19 SD on the CDC index for those caregivers who invested less than the median FCI at the baseline. Our findings support the importance of parental training for increased quality and time of caregiver investments in play activities, which lead to improved child outcomes, especially among children in households with the lowest levels of caregiver investment at baseline.
    Keywords: Play-based learning;early childhood development;parental engagement;Hybrid Education;Low- and middle-income countries;COVID-19;randomized controlled trial
    JEL: C93 I20 I24
    Date: 2023–05
  11. By: Ajzenman, Nicolás; Elacqua, Gregory; Jaimovich, Analia; Pérez-Nuñez, Graciela
    Abstract: Empirical results in economics often stem from success in controlled experimental settings, but often fail when scaled up. This study presents a behavioral intervention and a scalable equivalent aimed at reducing teacher shortages by motivating high school students to pursue an education degree. The intervention was delivered through WhatsApp chats by trained human promoters (humans arm) and rule-based Chatbots programmed to closely replicate the humans program (bots arm). Results show that the humans arm successfully increased high-school students demand for and enrollment in education majors, particularly among high-performing students. The bots arm showed positive but smaller and statistically insignificant effects. These findings indicate that a relatively low-cost intervention can effectively reduce teacher shortages, but scaling up such interventions may have limitations. Therefore, testing scalable solutions during the design stage of experiments is crucial.
    Keywords: Teachers;Teacher policy;teacher shortages;scale-up;behavioral;bots
    JEL: D91 I23 I25
    Date: 2023–07
  12. By: Loukas Balafoutas; Helena Fornwagner; Rudolf Kerschbamer; Matthias Sutter; Maryna Tverdostup
    Abstract: Credence goods markets are prone to fraudulent behavior and market inefficiencies due to informational asymmetries between sellers and customers. We examine experimentally the effects of diagnostic uncertainty and insurance coverage on the information acquisition and provision decisions by sellers and the trading decisions by consumers. Our results reveal that diagnostic uncertainty is a major source of inefficiency by decreasing efficient service provision. Insurance coverage has a positive net effect on market efficiency, despite making information acquisition and efficient service provision less likely. We also examine the role of -s and of sellers’ prosociality in shaping service provision and information acquisition.
    Keywords: Credence goods, diagnostic uncertainty, insurance coverage, experiment
    JEL: C91 D82 G22
    Date: 2023
  13. By: Lee-Whiting, Blake; Krashinsky, Lewis; Oldham, Robert; Roelofs, William
    Abstract: In Talking Shops: The Effects of Caucus Discussion on Policy Coalitions, Zelizer analyzes the causal effect of caucus deliberations on legislative policy coalitions. In practice, political scientists have little empirical evidence on how policy discussions actually work among sitting legislators and whether these discussions have an effect on policy making and policy opinion. Taking on this challenge, Zelizer conducted two field experiments in an American state legislature. In short, the experiments randomized whether a bill was selected for discussion among a bi-partisan legislative caucus. The paper then measures and reports the corresponding effects of that discussion around the bill. Zelizer finds that deliberation increased the amount of co-sponsorship for a given bill, among both co-partisans and counter-partisans, but deliberation did not effect whether a bill was passed by the legislature or whether the bill received more amendments. We conduct a robustness replication of the main results of Talking Shops. Specifically, we reproduce Tables 3 and 4 of the paper under alternative specifications. We find that the main results of the paper are reproducible and robust to multiple alternative specifications.
    Date: 2023
  14. By: Mateo-Berganza Díaz, María Mercedes; Näslund-Hadley, Emma; Cabra, Margarita; Vélez Medina, Laura Felizia
    Abstract: In this article we experimentally evaluate Colombia’s Think Equal program, which teaches socioemotional skills to children ages 3 to 6. Given the context of COVID-19, the original design was adapted as a hybrid model, alternating in-person and remote instruction and engaging families in the implementation of the curriculum. We found that the program had positive effects on children’s prosocial behavior, self-awareness, and cognitive learning. The intervention also had an impact on education centers personnel (community mothers) and caregivers implementing the activities. Treated community mothers had higher levels of empathy, lower negative health symptoms, better pedagogical practices, and a closer relationship with the children’s caregivers compared with those in the control group. Treated caregivers had better stimulation practices and lower negative health symptoms compared with those in the control group. These findings suggest that a well-designed intervention has the potential to develop socioemotional skills in children at an early age and, at the same time, to develop capacities in those who implement the activities. Our results have important implications for the design, implementation, and evaluation of early childhood socioemotional learning programs and provide novel evidence about the challenges faced by interventions combining face-to-face and remote learning.
    Keywords: Preschool learning;socioemotional learning;early childhood development;parent engagement;randomized controlled trial
    JEL: C93 I20 I24
    Date: 2023–05
  15. By: Carneiro, Pedro; Cruz-Aguayo, Yyannu; Salvati, Francesca; Schady, Norbert
    Abstract: We study the impact on learning of a child's rank in the classroom using a unique experiment from Ecuador. Within each school, students were randomly assigned to classrooms in every grade between kindergarten and 6th grade. Therefore, two students with the same ability can have different classroom ranks because of the (random) peer composition of their classroom. To isolate the impact of rank from other peer influences we include classroom fixed effects. Children with higher classroom rank at the beginning of the academic year have significantly higher math test scores at the end of that grade. Classroom rank in math, not language, drives our results. The impact of classroom math rank is larger for younger children, and grows substantially over time. Exogenous changes in classroom rank in math also improve executive function, child happiness, and teacher perceptions of student ability.
    Keywords: Classroom rank;Test scores;skills
    JEL: I20
    Date: 2023–07
  16. By: Dylan Balla-Elliott
    Abstract: Information provision experiments are an increasingly popular tool to identify how beliefs causally affect decision-making and behavior. In a simple Bayesian model of belief formation via costly information acquisition, people form precise beliefs when these beliefs are important for their decision-making. The precision of prior beliefs controls how much their beliefs shift when they are shown new information (i.e., the strength of the first stage). Since two-stage least squares (TSLS) targets a weighted average with weights proportional to the strength of the first stage, TSLS will overweight individuals with smaller causal effects and underweight those with larger effects, thus understating the average partial effect of beliefs on behavior. In experimental designs where all participants are exposed to new information, Bayesian updating implies that a control function can be used to identify the (unweighted) average partial effect. I apply this estimator to a recent study of the effects of beliefs about the gender wage gap on support for public policies (Settele, 2022) and find the average partial effect is 40% larger than the comparable TSLS estimate. This difference can be explained by the fact that the effects of beliefs are close to zero for people who update their beliefs the most and receive the most weight in TSLS specifications.
    Date: 2023–09
  17. By: Harrison H. Li; Art B. Owen
    Abstract: We consider an experiment with at least two stages or batches and $O(N)$ subjects per batch. First, we propose a semiparametric treatment effect estimator that efficiently pools information across the batches, and show it asymptotically dominates alternatives that aggregate single batch estimates. Then, we consider the design problem of learning propensity scores for assigning treatment in the later batches of the experiment to maximize the asymptotic precision of this estimator. For two common causal estimands, we estimate this precision using observations from previous batches, and then solve a finite-dimensional concave maximization problem to adaptively learn flexible propensity scores that converge to suitably defined optima in each batch at rate $O_p(N^{-1/4})$. By extending the framework of double machine learning, we show this rate suffices for our pooled estimator to attain the targeted precision after each batch, as long as nuisance function estimates converge at rate $o_p(N^{-1/4})$. These relatively weak rate requirements enable the investigator to avoid the common practice of discretizing the covariate space for design and estimation in batch adaptive experiments while maintaining the advantages of pooling. Our numerical study shows that such discretization often leads to substantial asymptotic and finite sample precision losses outweighing any gains from design.
    Date: 2023–09
  18. By: Lotito Gianna (Department of Economics and Statistics "Cognetti de Martiis", University of Torino, Italy;); Maffioletti Anna (Department of Economics, Social Studies, Applied Mathematics and Statistics, University of Torino, Italy;); Santoni Michele (Department of Economics, Management and Quantitative Methods, University of Milano, Italy;)
    Abstract: This study investigated whether different sources of uncertainty exert different influences on both the ambiguity aversion/preference and ambiguity-generated insensitivity to likelihood changes. These two dimensions of ambiguity attitude were measured using matching probabilities for three-fold partitioned events, without needing information about subjective likelihoods. A total of 133 Italian university students were randomly assigned to three different treatment groups. Treatments differed depending on the decision context associated with natural sources of uncertainty (i.e., the Covid-19 pandemic, sovereign interest spread, and football matches) under different national scenarios (i.e., France and Italy). The experimental hypothesis was that each decision context could be characterised by both different degrees of emotional involvement and different knowledge/competence of the participants. Additionally, all the participants faced an artificial source of uncertainty, which was always represented by Ellsberg's three-colour problem. The study found that, within treatments, participants were generally more ambiguity-averse when facing the artificial source of uncertainty than natural sources of uncertainty. However, they were less sensitive to likelihood changes when assessing natural rather than artificial sources of uncertainty. Keeping the national dimension of the decision context constant, the between-treatment comparison showed stronger ambiguity insensitivity for Covid-19 versus Football treatment in France. Overall, these findings provide evidence in favour of source preference (thereby, ambiguity aversion/preference depends on the source of uncertainty) but strong evidence in favour of source sensitivity (thereby, likelihood insensitivity depends on the source of uncertainty).
    Keywords: Natural Sources of Ambiguity, Artificial Sources of Ambiguity, Source Preference, Source Sensitivity, Ellsberg Paradox.
    JEL: C91 D81
    Date: 2023–10
  19. By: López-Luzuriaga, Andrea; Scartascini, Carlos
    Abstract: The existing literature shows that women are more likely to pay taxes than men. Yet, there is less consensus on the gendered responses to interventions aimed at boosting tax compliance among non-payers. In this study, we exploit a field experiment designed to increase property tax compliance to investigate this gender disparity. Our findings reaffirm that women are typically more diligent in paying their taxes than men. Interestingly, while the receipt of a deterrence letter prompts women to pay earlier, it does not necessarily augment their overall compliance. Conversely, men, upon receiving a deterrence letter, show a marked improvement in overall compliance. We also find that the size of the tax bill influences women's compliance behavior (the likelihood of paying'increases substantially for small bills), but not men's. To unpack this intriguing finding, we examine survey data to uncover the differing motivations and resources between genders. This analysis suggests that, although women may be more motivated to pay, they might encounter significant liquidity constraints. Our observations are consistent with a simple analytical model that correlates compliance to tax morale, risk aversion, and budget constraints. This research underscores the potential for tax policies and enforcement procedures to exacerbate income inequality between genders, especially in low tax-enforcement contexts where tax evasion is substantial.
    Keywords: taxes;Tax compliance;Field experiment;Development;Latin America and the Caribbea
    JEL: H24 D31 J16
    Date: 2023–07
  20. By: Augustin Bergeron; Gabriel Z. Tourek; Jonathan L. Weigel
    Abstract: This paper investigates how tax rates and tax enforcement jointly impact fiscal capacity in low-income countries. We study a policy experiment in the D.R. Congo that randomly assigned 38, 028 property owners to the status quo tax rate or to a rate reduction. This variation in tax liabilities reveals that the status quo rate lies above the revenue-maximizing tax rate (RMTR). Reducing rates by about one-third would maximize government revenue by increasing tax compliance. We then exploit two sources of variation in enforcement — randomized enforcement letters and random assignment of tax collectors — to show that the RMTR increases with enforcement. Including an enforcement message on tax letters or replacing tax collectors in the bottom quartile of enforcement capacity with average collectors would raise the RMTR by about 40%. Tax rates and enforcement are thus complementary levers. Jointly optimizing tax rates and enforcement would lead to 26% higher revenue gains than optimizing them independently. These findings provide experimental evidence that low government enforcement capacity sets a binding ceiling on the revenue-maximizing tax rate in some developing countries, thereby demonstrating the value of increasing tax rates in tandem with enforcement to expand fiscal capacity.
    JEL: H11 H21 H26 H71 O12
    Date: 2023–09
  21. By: Alain Lacroux (UP1 EMS - Université Paris 1 Panthéon-Sorbonne - École de Management de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne); Christelle Martin Lacroux (Université Grenoble Alpes IUT2)
    Abstract: Artificial Intelligence (AI) is increasingly used for decision-making support in organizations, and especially during the recruitment process. Consequently, recruiters may sometimes find themselves having to process different sources of information (human vs. algorithmic decision support system, ADSS) before deciding to preselect an applicant. Our study aims to explore the mechanisms that lead recruiters to follow or not the recommendations made by human and non-human experts, in particular when they receive contradictory or inaccurate information from these sources. Drawing on results obtained in the field of automated decision support, we make a first general hypothesis that recruiters trust human experts more than ADSS and rely more on their recommendations. Secondly, based on the Judge Advisor System Paradigm (Sniezek & Buckley, 1995), we make a second general hypothesis that the accuracy of the recommendations provided by the dual source of advice influences in different ways the accuracy of recruiters' preselection decisions. We conducted an experiment involving the screening of resumes by a sample of professionals (N=746) responsible for screening job applications in their work. As hypothesized, the recommendations made to recruiters do influence the accuracy of their decisions. Our results suggest that recruiters comply more with ADSS than human recommendations even if they declare a higher level of trust in human experts. Finally, implications for research and HR policies are discussed.
    Keywords: Artificial intelligence (AI), trust, resume screening, augmented recruitment
    Date: 2023–08–05
  22. By: Gilles Grolleau (ESSCA School of Management, France); Luc Meunier (ESSCA Research Lab - ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Naoufel Mzoughi (ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Pollution is frequently "rationalized" by involved firms as a necessary bad to reach economic or social goals. Unfortunately, little is known about how external observers form moral judgment when confronted to such a dual output, precisely an economic or social gain (e.g., profits, job preservation) and an environmental harm. Using two experimental surveys, we fill this gap by inviting participants to judge the morality of two companies engaging in the same environmental wrongdoings (river pollution and deforestation) while varying the generated monetary gain. In the preliminary study, individuals perceive environmental degradations generating higher profits for the firm as more morally acceptable. In the main study, we used a multiple-item measure of behavioral intentions towards the firm and we analyzed potential moderating effects. The results are threefold: (i) the attitude towards the firm improves as the profit obtained by the firm increases, up to a tipping point; (ii) when the profit gained by the firm increases, environmentally-unconcerned (resp. concerned) individuals display more positive (resp. negative) attitude towards the firm; (iii) respondents thinking that the firm main objective should be only about profit and not social well-being express a more lenient judgment. We draw several policy and managerial implications.
    Keywords: deforestation, water pollution, outcome bias, moral judgment
    Date: 2023–11
  23. By: Amalie Bjørnåvold (Department of Engineering Management - Faculty of Business and Economics - UA - University of Antwerp); Maia David (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Mermet-Bijon (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Olivier Beaumais (LERN - Laboratoire Environnement Ressources de Normandie - LITTORAL - LITTORAL - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer); Romain Crastes Dit Sourd (Leeds University Business School - University of Leeds); Steven van Passel (Department of Engineering Management - Faculty of Business and Economics - UA - University of Antwerp); Vincent Martinet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: In 2023, the European Union will vote on the reauthorization of glyphosate use, renewed in 2017 despite concern on impacts on the environment and public health. A ban is supported by several Member States but rejected by most farmers. What are citizens' preferences to phase out glyphosate? To assess whether taxation could be an alternative to a ban, we conducted a discrete choice experiment in five European countries. Our results reveal that the general public is strongly willing to pay for a reduction in glyphosate use. However, while 75.5% of respondents stated to support a ban in the pre-experimental survey, experimental results reveal that in 73.35% of cases, earmarked taxation schemes are preferred when they lead to a strong reduction in glyphosate use for an increase in food price lower than that induced by a ban. When glyphosate reduction is balanced against its costs, a tax may be preferred.
    Abstract: En 2023, l'Union européenne votera sur la réautorisation de l'utilisation du glyphosate, renouvelée en 2017 en dépit des préoccupations sur les impacts sur l'environnement et la santé publique. Une interdiction est soutenue par plusieurs États membres, mais rejetée par la plupart des agriculteurs. Quelles sont les préférences des citoyens pour l'élimination progressive du glyphosate? Pour évaluer si la fiscalité pourrait être une alternative à une interdiction, nous avons mené une expérience de choix discret dans cinq pays européens. Nos résultats révèlent que le grand public est tout à fait disposé à payer pour une réduction de l'utilisation du glyphosate. Cependant, alors que 75, 5% des répondants ont déclaré soutenir une interdiction dans le sondage pré-expérimental, les résultats expérimentaux révèlent que dans 73, 35% des cas, les régimes fiscaux spécifiques sont préférables lorsqu'ils conduisent à une forte réduction de l'utilisation du glyphosate pour une augmentation du prix des denrées alimentaires inférieure à celle induite par une interdiction. Lorsque la réduction du glyphosate est équilibrée avec ses coûts, une taxe peut être préférée
    Keywords: Discrete Choice Experiment, Glyphosate
    Date: 2023
  24. By: Aruguete, Natalia; Batista, Flavia; Calvo, Ernesto; Guizzo Altube, Matías; Scartascini, Carlos; Ventura, Tiago
    Abstract: Previous research has extensively investigated why users spread misinformation online, while less attention has been given to the motivations behind sharing fact-checks. This paper reports a four-country survey experiment assessing the influence of confirmation and refutation frames on engagement with online fact-checks. Respondents randomly received semantically identical content, either affirming accurate information (“It is TRUE that p”) or refuting misinformation (“It is FALSE that not p”). Despite semantic equivalence, confirmation frames elicit higher engagement rates than refutation frames. Additionally, confirmation frames reduce self-reported negative emotions related to polarization. These findings are crucial for designing policy interventions aiming to amplify fact-check exposure and reduce affective polarization, particularly in critical areas such as health-related misinformation and harmful speech.
    Keywords: misinformation;Fact-checking;Social media
    JEL: D83 D91
    Date: 2023–07
  25. By: Gilles Grolleau (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Lisette L. Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Naoufel Mzoughi (ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Environment-related decisions can be taken in situ or remotely. We discuss theoretically why and how this seemingly irrelevant factor, that is, the distance between the place of decision and the place where it is applied, affects the moral judgment by external third parties. We mobilize the out-group bias and the construal level theory to predict that distant decisions will be judged more severely than close equivalent ones. Using an experimental survey, we test whether an identical decision regarding an environmental wrongdoing is judged differently when observers are informed that the decision has been taken in situ or remotely. The findings support that the distance between decision centers and application places matters. An increase in spatial distance leads to a more severe judgment of an otherwise identical decision. We draw implications for business environmental strategy and suggest the existence of a liability of distance in the moral domain.
    Keywords: decisions, distance, moral judgment, environmental wrongdoings., CSR, sustainability
    Date: 2022
  26. By: Verginer, Luca; Vaccario, Giacomo; Ronzani, Piero
    Abstract: We explore human herding in a strategic setting where humans interact with automated entities (bots) and study the shift in the behavior and beliefs of humans when they are aware of interacting with bots. The strategic setting is an online minority game, where 1, 997 participants are rewarded for following the minority strategy. This setting permits distinguishing between irrational herding and rational self-interest—a fundamental challenge in understanding herding in strategic contexts. Moreover, participants were divided into two groups: one informed of playing against bots (informed condition) and the other unaware (uninformed condition). Our findings revealed that while informed participants adjusted their beliefs about bots' behavior, their actual decisions remained largely unaffected. In both conditions, 30% of participants followed the majority, contrary to theoretical expectations of no herding. This study underscores the persistence of herding behavior in human decision-making, even when participants are aware of interacting with automated entities. The insights provide profound implications for understanding human behavior on digital platforms where interactions with bots are common.
    Date: 2023–09–21
  27. By: Gómez, Maria Fernanda; González-Velosa, Carolina
    Abstract: During a period of COVID-19-induced job losses and mobility restrictions, the government of Colombia's launched Empléate, an innovative Pay-for-performance (P4P) program that targeted impoverished and vulnerable workers. Empléate operated at a national scale and had a novel financial arrangement: in contrast to traditional programs wherein service providers are remunerated based on their activities, service providers in Empleate only received payments based on successful placement of participants into formal employment. They were also granted premia for sustaining participants in formal jobs months for 3 to 6 months after insertion. This article presents the results of a randomized impact evaluation of Empleate conducted between September 2020 to April 2021. The Intention-to-Treat (ITT) estimates show that program participants were 9% more likely to secure a formal job five to eight months post-treatment. Impacts were larger among men and among individuals with work experience in sectors less affected by the pandemic, with the impacts rising to 22% and 17% respectively. There is no evidence of impacts among women and among individuals without secondary education. These ITT impacts likely underestimate real Average Treatment Effects (ATE) due to issues of imperfect compliance. Complementary analysis from survey data suggests creaming, underscoring the importance of ensuring an adequate allocation of financial risk on P4P contracts. Nevertheless, many design features are promising and positive impacts are noteworthy considering the adverse repercussions in Colombia's formal labor market inflicted by the pandemic.
    Keywords: Labor markets;Employment Programs;Results-Based-Financing;Active Labor Market Policies;Poverty
    JEL: H43 H57 I38 J24
    Date: 2023–07
  28. By: Oliver Frings (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jens Abildtrup (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claire Montagné-Huck (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Salomé Gorel (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Anne Stenger (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Based on a survey of the French population, this study investigates consumer preferences for forest ecosystem services (FES) provision towards efficiency and equity in the context of additionality, and differences in willingness to pay (WTP) for FES between a tax-based and a donation-based payments for ecosystem services (PES) scheme. We show that consumers prefer equity to strict additionality adherence, with this preference being significantly stronger among females. However, consumer preferences are heterogeneous, and respondents with a closer connection to forests express the opposite preference. Regarding WTP, we find no systematic difference between the two payment vehicles, though WTP does vary depending on how respondents perceive potential free-riding. When considering that non-contributors also benefit from a particular PES scheme, a small group perceived this as unfair and reacted by reducing their contribution. A second, significantly larger group interpreted this as an opportunity to contribute to the common good and showed a higher WTP, indicating a markedly altruistic attitude towards FES provision in French society. We conclude by discussing the role of altruism in PES, the dilemma posed by the partial economic and legal incompatibilities of additionality and equity, and the environmental impact of environmental credits when credit buyers do not account for additionality.
    Keywords: Ecosystem services valuation Additionality Equity Warm glow Free-riding Payment vehicle
    Date: 2023–11

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.