This article shows that accounting for variation in mistakes can be crucial for welfare
analysis. Focusing on consumer under-reaction to not-fully-salient sales taxes, we show …

We estimate β-δ time preferences and relative risk aversion (RRA) using a lifecycle model
including stochastic income, liquid and illiquid assets, credit cards, dependents, Social …

An understanding of human nature and of the motivations that drive human behavior have
always informed public policies. The use of behavioral research in public policy analysis …

Commitment products can remedy self-control problems. However, imperfect knowledge
about their preferences may (discontinuously) lead individuals to select into incentive …

This study discusses a field experiment on default options and savings decisions by low-
income households at the time of federal tax filing. In the treatment, a fraction of the tax …

Work often entails up-front effort costs in exchange for delayed benefits, and mounting
evidence documents present bias over effort in the face of such delays. This paper studies …

We conduct a laboratory experiment that tests two fundamental predictions unique to
salience theory. If an agent purchases one of two vertically differentiated products, salience …

We study optimal savings policies when there is a dual concern about undersaving for
retirement and income inequality. Agents differ in present bias and earnings ability, both …

Low incomes, limited financial literacy, fraud, and deception are just a few of the many
intractable economic and social factors that contribute to the financial difficulties that …

Classical stochastic optimal control problems are time-consistent, by which it means that an
optimal control selected at a given initial pair remains optimal thereafter, along the optimal …