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The Behavioral Foundations of Default Effects: Theory and Evidence from Medicare Part D

By Zarek Brot-Goldberg, Timothy Layton, Boris Vabson, and Adelina Yanyue Wang

American Economic Review, October 2023

We show in two natural experiments that default rules in Medicare Part D have large, persistent effects on enrollment and drug utilization of low-income beneficiaries. The implications of this phenomenon for welfare and optimal policy depend on the sensit...

Matching Mechanisms for Refugee Resettlement

By David Delacrétaz, Scott Duke Kominers, and Alexander Teytelboym

American Economic Review, October 2023

Current refugee resettlement processes account for neither the preferences of refugees nor the priorities of hosting communities. We introduce a new framework for matching with multidimensional knapsack constraints that captures the (possibly multidimensi...