American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Reminders Work, but for Whom? Evidence from New York City Parking Ticket Recipients
American Economic Journal: Economic Policy
vol. 14,
no. 4, November 2022
(pp. 343–70)
Abstract
We investigate heterogeneity in responsiveness to reminder letters among New York City parking ticket recipients. Using variation in the timing of letters, we find a strong aggregate response. But we find large differences across individuals: those with a low baseline propensity to respond to tickets—a natural nudge target—react least to letters. These low-response types, who incur significant late penalties, disproportionately come from already disadvantaged groups. They do react strongly to traditional, incentive-based interventions. We discuss how accounting for response heterogeneity might change one's approach to policy and how one might use our analysis to target interventions at low-response types.Citation
Heffetz, Ori, Ted O'Donoghue, and Henry S. Schneider. 2022. "Reminders Work, but for Whom? Evidence from New York City Parking Ticket Recipients." American Economic Journal: Economic Policy, 14 (4): 343–70. DOI: 10.1257/pol.20200400Additional Materials
JEL Classification
- D04 Microeconomic Policy: Formulation, Implementation, and Evaluation
- D12 Consumer Economics: Empirical Analysis
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- H71 State and Local Taxation, Subsidies, and Revenue
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