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Christopher Cotton, Brent R Hickman, John A List, Joseph Price, Sutanuka Roy

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We conduct a field experiment across three diverse school districts to structurally identify student motivation and study productivity parameters in a model of adolescent human capital development. By observing study time, homework task completion, and test results, we can identify individual and demographic variations in motivation and study time effectiveness. Struggling students typically do not lack motivation but rather struggle to convert study time into completed assignments and proficiency improvements. The study also attending a higher-performing school is associated with both higher productivity and higher motivation relative to peers with similar observables in lower-performing schools. Counterfactual analyses estimates that school quality differences account for a substantial share of the racial differences in test scores, and considers the impact of alternative policies aimed at reducing racial performance gaps.

John A List, Matthias Rodemeier, Sutanuka Roy, Gregory Sun

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While behavioral non-price interventions ("nudges") have grown from academic curiosity to a bona fide policy tool, their relative economic efficiency remains under-researched. We develop a unified framework to estimate welfare effects of both nudges and taxes. We showcase our approach by creating a database of more than 300 carefully hand-coded point estimates of non-price and price interventions in the markets for cigarettes, influenza vaccinations, and household energy. While nudges are effective in changing behavior in all three markets, they are not necessarily the most efficient policy. We find that nudges are more efficient in the market for cigarettes, while taxes are more efficient in the energy market. For influenza vaccinations, optimal subsidies likely outperform nudges. Importantly, two key factors govern the difference in results across markets: i) an elasticity-weighted standard deviation of the behavioral bias, and ii) the magnitude of the average externality. Nudges dominate taxes whenever i) exceeds ii). Combining nudges and taxes does not always provide quantitatively significant improvements to implementing one policy tool alone.