Intervention

Labeling and spending

Labeling money transfers for a specific purpose can often influence how the recipient uses the money. Using survey data on household fuel consumption in a regression discontinuity design, it was shown that individuals in the survey who were above the threshold to receive a "winter fuel" payment (age 60) spend between 10% and 57% more on fuel than those just below the threshold. By labeling the payment as fuel money, spending might be more likely directed towards the labeled purpose.

Biases Used

Bias

Other Applications: Law Abiding Behavior, Employment and Work Performance, Education