CES short course Behavioural Public Economics. Johannes Abeler
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1 CES short course Behavioural Public Economics Johannes Abeler The reading list gives a general overview of the topic it is not required to read all papers. However, we will discuss two papers in more detail and I require all participants to read those papers, marked below with **, before the course (Chetty et al. and DellaVigna et al.). (* denotes essential reading; ** denotes papers that need to be read before the course) Behavioural Welfare Economics Introduction and General Reviews of Behavioural Economics *Bernheim, B. and Rangel, A. (2005). Behavioral Public Economics: Welfare and Policy Analysis with Non-Standard Decision-Makers, Camerer, C., Loewenstein, G. and Rabin, M. (2004). Advances in behavioral economics, Princeton University Press. Kahneman, D. and Tversky, A. (2000). Choices, values, and frames, Cambridge University Press. Rabin, M. (1998). Psychology and economics, Journal of Economic Literature pp Welfare Economics *Bernheim, B. D., and Rangel, A. (2009). Beyond Revealed Preference: Choice- Theoretic Foundations for Behavioral Welfare Economics. Quarterly Journal of Economics, 124(1), Brunnermeier, M. Simsek, A., and Xion, W. (2014) A welfare criterion for models with distorted beliefs Quarterly Journal of Economics, 129 (4)
2 **Chetty, R.,, A. Looney, and K. Kroft. Salience and Taxation: Theory and Evidence, American Economic Review 99(4): , Chetty (2015) Behavioral economics and public policy: a pragmatic perspective. NBER Working Paper Choi, J. J., Laibson, D., and Madrian, B. C. (2009). Mental Accounting in Portfolio Choice: Evidence from a Flypaper Effect. American Economic Review, 99(5), Fudenberg, D., and Levine, D. K. (2006). A dual-self model of impulse control. American Economic Review, Gul, F., and Pesendorfer, W. (2001). Temptation and self control. Econometrica, 69(6), Laibson, D. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 112(2), Loewenstein, G. and Thaler, R. (1989). Anomalies: intertemporal choice, Journal of Economic Perspectives 3(4): Masatioglu, Y. and Raymond, C. (2014) "A Behavioral Analysis of Stochastic Reference Dependence Sugden, R. (2004). The opportunity criterion: consumer sovereignty without the assumption of coherent preferences, American Economic Review 94(4): Sunstein, C. R., and Thaler, R. H. (2003). Libertarian paternalism is not an oxymoron. University of Chicago Law Review, 70, Thaler, R. and Sunstein, C. (2008). Nudge: Improving decisions about health, wealth, and happiness, Yale University Press. Tversky, A. and Kahneman, D. (1981). The framing of decisions and the psychology of choice, Science 211(4481): 453. Happiness Benjamin, D., Heffetz, O., Kimball, M., and Rees-Jones, A. (2014). Can Marginal Rates of Substitution Be Inferred From Happiness Data? Evidence from Residency Choices. American Economic Review, 104(11), Benjamin, D., Heffetz, O., Kimball, M., and Szembrot, N. (2014). Beyond Happiness and Satisfaction: Toward Well-Being Indices Based on Stated Preference. American Economic Review, 104(9), Caplin, A. and Schotter, A. (2008). The foundations of positive and normative 2
3 economics: A handbook, Oxford University Press, USA. *Clark, A. E., Diener, E., Georgellis, Y., and Lucas, R. E. (2008). Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis. Economic Journal, 118(529), F222- F243. Deaton, A. (2008) Income, Health, and Well-Being around the World: Evidence from the Gallup World Poll, Journal of Economic Perspectives, 22(2), Dolan, P. and Kahneman, D. (2008). Interpretations Of Utility And Their Implications For The Valuation Of Health, Economic Journal 118(525): *Easterlin, R. (1974). Does economic growth improve the human lot? Some empirical evidence, in P. A. David and M. W. Reder (eds), Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz, Academic Press, New- York, pp Easterlin, R. and Angelescu, L. (2009). Happiness and growth the world over: Time series evidence on the happiness-income paradox, IZA Discussion Paper (4060). Kahneman, D. and Sugden, R. (2005). Experienced utility as a standard of policy evaluation, Environmental and Resource Economics 32(1): Kahneman, D., Wakker, P. and Sarin, R. (1997). Back to Bentham? Explorations of Experienced Utility, Quarterly Journal of Economics 112(2): Layard, R. (2005). Happiness: Lessons From a New Science, Allen Lane, London. Layard, R., Mayraz, G. and Nickell, S. (2008). The marginal utility of income, Journal of Public Economics 92(8-9): Luechinger, S. (2009). Valuing Air Quality Using the Life Satisfaction Approach, Economic Journal 119(536): *Stevenson, B. and Wolfers, J. (2008). Economic Growth and Subjective Well- Being: Reassessing the Easterlin Paradox, Brookings Papers on Economic Activity. 3
4 Charitable Giving *Andreoni, J Impure Altruism and Donations to Public Goods: A Theory of Warm Glow Giving, Economic Journal 100, Andreoni, J. An Experimental Test of the Public Goods Crowding-Out Hypothesis, American Economic Review 83 (5), , Andreoni, J (2006): Philanthropy in Handbook of Giving, Reciprocity and Altruism edited by L.-A. Gerard-Varet, Serge-Christophe Kolm and Jean Mercier Ythier, Elsevier Andreoni, J., and Bernheim, B. D. (2009). Social image and the norm: A theoretical and experimental analysis of audience effects. Econometrica, 77(5), Andreoni, J., and Payne, A. A. (2011). Crowding-Out Charitable Contributions in Canada: New Knowledge from the North (No. w17635). National Bureau of Economic Research. Andreoni J. and A. Payne, Do Government Grants to Private Charities Crowd Out Giving or Fundraising? American Economic Review, 93(3), June 2003, Andreoni, J., Rao, J. M., and Trachtman, H. (2011). Avoiding the ask: a field experiment on altruism, empathy, and charitable giving (No. w17648). National Bureau of Economic Research. Ariely, Dan, Anat Bracha, and Stephan Meier (2009) Doing good or doing well, American Economic Review 99(1), *Benabou, R., and Tirole, J. (2006). Incentives and prosocial behavior. American Economic Review, 96(5), Bergstrom, T. and L. Blume and H. Varian, On the Private Provision of Public Goods, Journal of Public Economics 29, 1986, **DellaVigna, S., List, J. A., and Malmendier, U. (2012). Testing for Altruism and Social Pressure in Charitable Giving. Quarterly Journal of Economics, 127(1), Fehr, E., and Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics, 114(3), Huck, S. and I. Rasul, Matched fundraising: Evidence from a natural field experiment, Journal of Public Economics, Volume 95, Issues 5 6, 2011, Hungerman D. Are Church and State Substitutes? Evidence from the 1996 Welfare Reform, Journal of Public Economics 89 (2005), Karlan, D., and List, J. A. (2007). Does price matter in charitable giving? Evidence from a large-scale natural field experiment. American Economic Review,
5 Kingma, B. An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions, Journal of Political Economy 97 (1989), Potters, J., M. Sefton, and L. Vesterlund. After You - Endogenous Sequencing in Voluntary Contribution Games, Journal of Public Economics, August 2005,
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