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The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment

Quarterly Journal of Economics 2003 118(3), 815-842
This paper analyzes a randomized experiment to shed light on the role of information and social interactions in employees' decisions to enroll in a Tax Deferred Account (TDA) retirement plan within a large university. The experiment encouraged a random sample of employees in a subset of departments to attend a benefits information fair organized by the university, by promising a monetary reward for attendance. The experiment multiplied by more than five the attendance rate of these treated individuals (relative to controls), and tripled that of untreated individuals within departments where some individuals were treated. TDA enrollment five and eleven months after the fair was significantly higher in departments where some individuals were treated than in departments where nobody was treated. However, the effect on TDA enrollment is almost as large for individuals in treated departments who did not receive the encouragement as for those who did. We provide three interpretations—differential treatment effects, social network effects, and motivational reward effects—to account for these results.

Dams

Quarterly Journal of Economics 2007 122(2), 601-646
This paper studies the productivity and distributional effects of large irrigation dams in India. Our instrumental variable estimates exploit the fact that river gradient affects a district's suitability for dams. In districts located downstream from a dam, agricultural production increases, and vulnerability to rainfall shocks declines. In contrast, agricultural production shows an insignificant increase in the district where the dam is located but its volatility increases. Rural poverty declines in downstream districts but increases in the district where the dam is built, suggesting that neither markets nor state institutions have alleviated the adverse distributional impacts of dam construction.

Saving Incentives for Low- and Middle-Income Families: Evidence from a Field Experiment with H&R Block

Quarterly Journal of Economics 2006 121(4), 1311-1346
We analyze a randomized experiment in which 14,000 tax filers in H&R Block offices in St. Louis received matches of zero, 20 percent, or 50 percent of IRA contributions. Take-up rates were 3 percent, 8 percent, and 14 percent, respectively. Among contributors, contributions, excluding the match, averaged $765 in the control group and $1100 in the match groups. Taxpayer responses to similar incentives in the Saver's Credit are much smaller. Taxpayers did not game the experiment by receiving a match and strategically withdrawing funds. Tax professionals significantly influenced contribution choices. These results suggest that both incentives and information affect behavior.

Remedying Education: Evidence from Two Randomized Experiments in India

Quarterly Journal of Economics 2007 122(3), 1235-1264
This paper presents the results of two experiments conducted in Mumbai and Vadodara, India, designed to evaluate ways to improve the quality of education in urban slums. The authors argue that resources alone may not be sufficient to improve educational outcomes. The authors study the impact of a remedial education programme which hired young women from the community to teach basic literacy and numeracy skills to children lagging behind in government schools. A computer-assisted learning programme also provided each child in the fourth grade with two hours of shared computer time per week, in which students played educational games that reinforced mathematics skills.