Evidence receipt / evaluation
Published · transcript-backedEsther Duflo: evaluation
18 Dec 2019 Conversations with Tyler Esther Duflo on Management, Growth, and Research in Action
“The point is that the response to financial incentives is less than what typically we assume it is, both in terms of people seem to be pretty inelastic to taxes at all levels of income from the studies we have.”
Source trail
Everything needed to verify it.
- Speaker
- Esther Duflo
- Attribution
- Verified speaker
- Claim type
- evaluation
- Recorded
- 18 Dec 2019
- Publisher
- Conversations with Tyler
Transcript context
…But getting educated or not being pulled over for a drunk-driving traffic ticket — they’re closely related to financial incentives. The traffic ticket, I think, is much more than the financial incentive. If you get stopped by a traffic officer, you lose your car right this instant. I think that it’s likely inconvenience is much, much bigger. The point that we are trying to make is not that people are not sensitive to incentives, because we can always construct incentives. If you construct the incentive boldly enough, then it’s almost always true. The point is also not that people are not responsive to financial incentives whatsoever. The point is that the response to financial incentives is less than what typically we assume it is, both in terms of people seem to be pretty inelastic to taxes at all levels of income from the studies we have. People seem to be pretty inelastic to receiving money for sure that doesn’t lead them to go on vacation. But that’s just an income effect, right? It’s not a price effect.…
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