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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