Experimental and Behavioral Economics in the Design and Evaluation of Social Interventions Coordinator Sandra Polanía-Reyes Mail address [email protected]
Phone +1 (734) 277 1984 Purpose This is an intensive course to introduce participants to experimental economics and its applications. The main application we study is the design and evaluation of prosocial interventions (i.e. interventions aimed at a behavioral change that contributes to the common good) in organizations and communities. The course aims to introduce experimental methods as well as the use of laboratory and field experiments as a tool to study economic behavior and empirically test hypotheses derived from both economic theory and public policy. At the end of the course, participants will have a practical framework to develop, implement and evaluate prosocial interventions in their area of interest. In particular this framework will give them the experimental tools to understand the applicability and replicability of a given intervention on a specific problem. This course is intended for anyone interested in the design, implementation and evaluation of prosocial interventions, including researchers, practitioners, policy makers and coordinators. Goals • • • •
Introduce an empirical basis from experimental and behavioral economics with a special focus on prosocial interventions. Familiarize participants with the current challenges and problems when prosocial interventions are designed and evaluated Apply the tools of applied econometrics as well as behavioral and experimental economics to the design and evaluation of prosocial interventions. In particular, each participant will have an individual action plan to apply what she/he has learned in the course according to her/his research interests.
Course Format The course is participatory, with short presentations, discussions and group work. The number of participants allows individual guidance by the coordinator. The course content has been adjusted to fit the research interests, professional agenda and experience of participants. Program Description 5. On the first day we will present examples of field experiments and examples of economic games. 6. On the second day will discuss how an experimental design in the laboratory and field differences. In the afternoon we will present what economic theory says about social preferences and how it is used for successful pro-social interventions. 7. On the third day, the general framework is presented for designing a field experiment and work on pilot projects chosen by the participants of the course. In the afternoon the ethical
aspects of research using economic experiments and context will use the experiments as measuring tools in assessing the impact of interventions or be presented as a pedagogical tool. On the coordinator Sandra Polania-Reyes is an economist with a minor in Anthropology from the University of Los Andes, PhD in Economics from the Università degli Studi di Siena and University College London. Her research interests are experimental economics and behavioral economics, early childhood development, applied microeconomics and design and evaluation of public policy. References – Thematic Index 1. General References Bowles, Sam. 2011, Is Liberal Society a Parasite on Tradition?. Philosophy & Public Affairs, 39: 46– 81. doi: 10.1111/j.1088-4963.2011.01201.x Bowles, S., & Polania-Reyes, S. (2012). Economic Incentives and Social Preferences: Substitutes or Complements? Journal of Economic Literature, 50 (2), 368-425. Bowles, Samuel. (2015)."Machiavelli’s mistake: Why good laws are no substitute for good citizens." Fortcomming, Yale University Press. Online version retrieved at: http://tuvalu.santafe.edu/~bowles/Machiavelli.pdf Kraft-Todd, Gordon, Erez Yoeli, Syon Bhanot, and David Rand. "Promoting cooperation in the field." Current Opinion in Behavioral Sciences 3 (2015): 96-101. 2. Examples of field experiments Alpizar, Francisco, Fredrik Carlsson, and Olof Johansson-Stenman. "Anonymity, reciprocity, and conformity: Evidence from voluntary contributions to a national park in Costa Rica." Journal of Public Economics 92.5 (2008): 1047-1060. Angrist, Joshua and Victor Lavy. 2009. "The Effects of High Stakes High School Achievement Rewards: Evidence from a Randomized Trial." American Economic Review, 99(4), pp. 1384-414. Ariely, Dan, Ximena Garcia-Rada, Lars Hornuf, and Heather Mann. "The (true) legacy of two really existing economic systems." (2014). Working paper. Baran, Nicole M.; Paola Sapienza and Luigi Zingales. 2010. "Can We Infer Social Preferences from the Lab? Evidence from the Trust Game," In NBER Working Papers. Belkin, Douglas. 2002. "Boston Firefighters Sick - or Tired of Working 15-Day Allowance Seen Fueling Call-Ins," In Boston Globe, B1. Boston Besley, T.; G. Bevan and K. Burchardi. 2009. "Naming & Shaming: The Impacts of Different Regimes on Hospital Waiting Times in England and Wales'," In CEPR Discussion Paper no. 7306. London: Centre for Economic Policy Research. Braaten, Ragnhild Haugli. "Land Rights and Community Cooperation: Public Goods Experiments from Peru." World Development 61 (2014): 127-141.
Cardenas, Juan Camilo; John K. Stranlund and Cleve E. Willis. 2000. "Local Environmental Control and Institutional Crowding-Out." World Development, 28(10), pp. 1719-33. Cardenas, Juan Camilo, 2004. "Norms from Outside and Inside: An Experimental Analysis on the Governance of Local Ecosystems." Forest Policy and Economics, 6, pp. 229-41. Carpenter, J., & Seki, E. (2011). Do social preferences increase productivity? Field experimental evidence from fishermen in Toyama Bay. Economic Inquiry,49(2), 612-630. Greenberger, Scott. 2003. "Sick Day Abuses Focus of Fire Talks," In Boston Globe, B7. Fehr, Ernst and Bettina Rockenbach. 2003. "Detrimental Effects of Sanctions on Human Altruism." Nature, 422(13 March), pp. 137-40. Fehr, Ernst and Andreas Leibbrandt. 2011. "A Field Study on Cooperativeness and Impatience in the Tragedy of the Commons." Journal of Public Economics, 95(9–10), pp. 1144-55. Frey, Bruno S., and Felix Oberholzer-Gee. "The cost of price incentives: An empirical analysis of motivation crowding-out." The American economic review(1997): 746-755. Fisman, R., & Miguel, E. (2007). Corruption, norms, and legal enforcement: Evidence from diplomatic parking tickets. Journal of Political economy, 115(6), 1020-1048. Fryer, Roland G. "Financial Incentives and Student Achievement: Evidence from Randomized Trials*." Quarterly Journal of Economics 126.4 (2011). Gasiorowska, A., Zaleskiewicz, T., & Wygrab, S. (2012). Would you do something for me? The effects of money activation on social preferences and social behavior in young children. Journal of Economic Psychology, 33(3), 603-608. Gneezy, Uri, and Aldo Rustichini. 2000. “A Fine Is a Price.” Journal of Legal Studies 29 (1): 1–17. Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "The determinants of attitudes towards strategic default on mortgages." The Journal of Finance 68.4 (2013): 5. Retrieved at http://services.bepress.com/jof/vol68/iss4/art5/ Gelcich, S., R. Guzman, C. Rodriguez-Sickert, J. C. Castilla, and J. C. Cárdenas. 2013. Exploring external validity of common pool resource experiments: insights from artisanal benthic fisheries in Chile. Ecology and Society 18(3): 2. http://dx.doi.org/10.5751/ES-05598-180302 Holmås, Tor Helge; Egil Kjerstad; Hilde Lurås and Odd Rune Straume. 2010. "Does Monetary Punishment Crowd out Pro-Social Motivation? A Natural Experiment on Hospital Length of Stay." Journal of Economic Behavior & Organization, 75(2), pp. 261-67. Leibbrandt, A., Gneezy, U., & List, J. A. (2013). Rise and fall of competitiveness in individualistic and collectivistic societies. Proceedings of the National Academy of Sciences, 110(23), 9305-9308. Lepper, Mark R., David Greene, and Richard E. Nisbett. "Undermining children's intrinsic interest with extrinsic reward: A test of the" overjustification" hypothesis." Journal of Personality and social Psychology 28.1 (1973): 129. At: http://psycnet.apa.org/journals/psp/28/1/129/
Rakoczy, Hannes, Felix Warneken, and Michael Tomasello. "The sources of normativity: young children's awareness of the normative structure of games."Developmental psychology 44.3 (2008): 875. Retrieved at: http://psycnet.apa.org/journals/dev/44/3/875/ Rustagi, Devesh; Stefanie Engel and Michael Kosfeld. 2010. "Conditional Cooperation and Costly Monitoring Explain Success in Forest Commons Management." Science, 330(6006), pp. 961-65. Wilkinson-Ryan, Tess. "Do liquidated damages encourage breach? A psychological experiment." Michigan Law Review (2010): 633-671. 3. Experimental Economics Hey, John D. (1991) Experiments in Economics. Oxford: Basil Blackwell. Brañas, Pablo e I.Barreda . (2011) Experimentos en Economía. En “Economía Experimental y del Comportamiento Antoni Bosch Editor. España. Friedman, D., and Sunder, S. (1994) Experimental Methods: A Primer for Economists. Cambridge University Press Roth, A. E. (1995), "Introduction to experimental economics", in Kagel, J., A. E. Roth, 1995 The Handbook of Experimental Economics, Princeton University Press, 1-98. Colin Camerer, Behavioral Game Theory: Experiments in Strategic Interaction, Princeton University Press, April 2003. 4. Lab in the field experiments and economics experiments Alpízar, F., & Cárdenas, J.-C. (2011). Experimentos de campo y economía del desarrollo. En P. Brañas (Comp.), Economía experimental y del comportamiento (págs. 341-354). Barcelona: Antoni Bosch. Candelo, N., & Polanía-Reyes, S. (2008). Pasos metodológicos de un diseño experimental para medir capital social y acción colectiva en seis ciudades latinoamericanas. Documento CEDE 200817. Bogotá: Universidad de los Andes. Cárdenas, J. C., & Carpenter, J. (2008). Behavioural Development Economics: Lessons from Field Labs in the Developing World. Journal of Development Studies, 44 (3), 311-338. Harrison, Glenn W.; List, John A., Field Experiments, Journal of Economic Literature, Volume 42, Number 4, December 2004 , pp. 1009-1055 Banerjee, Abhijit V. y Esther Duflo. 2009. “The Experimental Approach to Development Economics.” Annual Review of Economics, 1:151-178. Levitt, Steven and John List. 2007. “What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?” Journal of Economic Perspectives, 21(2), 153-174. 5. Impact Evaluation Blundell, R., & Dias, M. C. (2009). Alternative approaches to evaluation in empirical microeconomics. Journal of Human Resources, 44(3), 565-640.
Duflo, Esther, Rachel Glennerster, and Michael Kremer. "Using randomization in development economics research: A toolkit." Handbook of development economics 4 (2007): 3895-3962. 6. Lab in the field experiments that measure prosocial behavior Balafoutas, Loukas, and Nikos Nikiforakis. "Norm enforcement in the city: a natural field experiment." European Economic Review 56.8 (2012): 1773-1785. Balafoutas, Loukas, Nikos Nikiforakis, and Bettina Rockenbach. "Direct and indirect punishment among strangers in the field." Proceedings of the National Academy of Sciences 111.45 (2014): 15924-15927. Attanasio, O., A. Barr, J. C. Cardenas, G. Genicot, & C. Meghir. (2012a). "Risk Pooling, Risk Preferences, and Social Networks" American Economic Journal: Applied Economics, 4(2): 134- 67. Attanasio, O. L. Pellerano & S. Polanía-Reyes (2015) Building social capital: conditional cash transfers and cooperation. Forthcoming in the Journal of Economic Behavior and Organization. Attanasio, O. L. Pellerano & S. Polanía-Reyes (2009). "Building Trust? Conditional Cash Transfer Programs and Social Capital." Fiscal Studies, 30(2), pp. 139-77. Cardenas J.C, Candelo, N. Chong, H. Nopo, S. Calonico & S. Polania-Reyes (2008) To What Extent Do Latin Americans Trust and Cooperate? Field Experiments on Social Exclusion in Six Latin American Countries. In : IADB (2008) IPES 2008 Report: Outsiders? The Changing Patterns of Exclusion in Latin America and the Caribbean (David Rockefeller/Inter-American Development Bank). Chapter 7. http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1154386 Cárdenas JC, Candelo N, Gaviria A, Polania S, Sethi R. 2008. Discrimination in the provision of social services to the poor: a field experimental study. RES Work. Pap. 3247, Res. Dep., Inter-Am. Dev. Bank Como herramientas de aprendizaje Cárdenas JC, Carpenter J. 2005. Three themes on field experiments and economic development. See Carpenter et al. 2005, pp. 71–123 Carpenter J, Harrison GW, List JA, eds. 2005. Field Experiments in Economics, Vol. 10. Greenwich, CT: JAI Press Cardenas J.C. (2009) “Experiments in Environment and Development”. Annual Review of Resource Economics, Vol. 1: 157-182. October, 2009 7. Resources Bendle, Neil and Philip Chen. 2013. Behavioral Economics for Kids. FehrAdvice & Partners AG, Zürich. At: http://neilbendle.com/books/BehavioralEconforKids.pdf Jornal of Economic Behavior and Organization has a repository with experimental instructions. Lista de comprobación Cuadro 1.1. Brañas-Garza 2011. Table 1. Cardenas J.C. (2009) “Experiments in Environment and Development ”. Annual Review of Resource Economics, Vol. 1: 157-182. October, 2009
Alan Gerber, Kevin Arceneaux, Cheryl Boudreau, Conor Dowling, Sunshine Hillygus, Thomas Palfrey, Daniel R. Biggers and David J. Hendry (2014). Reporting Guidelines for Experimental Research: A Report from the Experimental Research Section Standards Committee. Journal of Experimental Political Science, 1, pp 81-98 doi:10.1017/xps.2014.11 Rebecca B. Morton and Joshua A. Tucker (2014). Experiments, Journals, and Ethics. Journal of Experimental Political Science, 1, pp 99-103 doi:10.1017/xps.2014.23 NRC (2014) Proposed Revisions to the Common Rule for the Protection of Human Subjects in the Behavioral and Social Sciences. National Research Council. Samson, A. (Ed.)(2014). The Behavioral Economics Guide 2014 (with a foreword by George Loewenstein and Rory Sutherland) (1st ed.). Retrieved from http://www.behavioraleconomics.com Office for Human Research Protections. IRB guidebook (Institutional Review Board) http://www.hhs.gov/ohrp/archive/irb/irb_guidebook.htm Thaler, Richard H. and Cass R. Sunstein. Nudge: Improving Decisions and Health, Wealth and Happiness. Penguin, 2009. Camerer, Colin. Behavioral Economics in Advances in Economics and Econometrics: Theory and Applications, Ninth World Congress, vol.2. Cambridge University Press, 2006. LAFEN: Red de experimentos en campo de América Latina http://lafen.uniandes.edu.co/ WDR 2015 World Bank Development Report. Mind, Society and Behavior.