Using Preference Estimates to Customize Incentives: An Application to Polio Vaccination Drives in Pakistan

Author:

Andreoni James1,Callen Michael2,Hussain Karrar3,Khan Muhammad Yasir4,Sprenger Charles5

Affiliation:

1. UC San Diego , USA

2. London School of Economics , UK

3. FAU Erlangen-Nuremberg , Germany

4. University of Pittsburgh , USA

5. Caltech , USA

Abstract

Abstract We use estimates of time preferences to customize incentives for polio vaccinators in Lahore, Pakistan. We measure time preferences using intertemporal allocations of effort, and use these estimates to construct individually tailored incentives. We evaluate the effect of matching contract terms to discounting parameters in a subsequent experiment with the same vaccinators. Our tailored policy is compared with alternatives that either rely on atheoretic reduced-form relationships for policy guidance or apply the same policy to all individuals. We find that contracts tailored to individual discounting outperform this range of policy alternatives.

Funder

International Growth Centre

UCLA Anderson

Boston University

UC San Diego

NBER

Publisher

Oxford University Press (OUP)

Subject

General Economics, Econometrics and Finance

Reference57 articles.

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2. “Incentivizing Behavioral Change: The Role of Time Preferences.”;Aggarwal,2020

3. “Estimating Time Preferences with Convex Budgets.”;Andreoni;American Economic Review,2012

4. “Do-Gooders and Go-Getters: Career Incentives, Selection, and Performance in Public Sector Service Delivery.”;Ashraf,2016

5. “Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines.”;Ashraf;Quarterly Journal of Economics,2006

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