Template-Type: ReDIF-Paper 1.0
Title: Policy Evaluation in Behavioral Models
Author-Name: Christian Michel
Author-Email: christian.michel@upf.edu 
Author-Name: André Stenzel
Author-Email: andre.stenzel@uni-mannheim.de
Classification-JEL: D04, D18, D90
Keywords: Ex-post policy evaluation, Identification of nonstandard preferences, Projection bias, Cooling off, Behavioral economics

Abstract: This paper studies the data requirements to conduct an unambiguous policy evaluation when 
consumers may exhibit nonstandard preferences. We theoretically analyze how the equilibrium combinations 
before and after a policy introduction allow to clearly assess different economic indicators. Specifically, 
we study the data requirements for an unambiguous evaluation of two distinct consumer "cooling off" 
policies in a model in which consumers may exhibit a projection bias when making consumption decisions. 
We find that market-level data can help to make simple policy evaluations using baseline statistics and 
sometimes even discriminate between different classes of consumer preferences. We further discuss the 
generalizability to other models and the use for ex-ante policy design.

Note: 
Length: 46
Creation-Date: 2018-12
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp061
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_061v1