Behavioral public economics: Welfare and policy analysis with nonstandard decision-makers

Behavioral Economics and Its Applications

Volumn , Issue , 2012, Pages 7-84

  Bernheim, Douglas ^a,b   Rangel, Antonio ^a  

^a STANFORD UNIVERSITY   (United States)

^b AMERICAN ACADEMY OF ARTS AND SCIENCES   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84883911975     PISSN: None     EISSN: None     Source Type: Book    
DOI: None     Document Type: Chapter

References (219)

1. Abrams, B. A., and M.A. Schmitz. 1978a. The "crowding-out" effect of government transfers on private charitable contributions. Public Choice 33:29-39.
2. Abrams, B. A., and M.A. Schmitz.1978b. The "crowding-out" effect of government transfers on private charitable contributions: cross-sectional evidence. National Tax Journal 37:563-68.
3. Ainslie, G., and V. Haendel. 1983. The motives of the will. In Etiologic Aspects of Alcohol and Drug Abuse (ed. E. Gotteheil et al.). Springfield, IL: Thomas.
4. Akerlof, G. 1991. Procrastination and obedience. American Economic Review 81:1-19.
5. Ameriks, J., A. Caplin, and J. Leahy. 2003.Wealth accumulation and the propensity to plan. Quarterly Journal of Economics 118:1007-47.
6. Andreoni, J. 1988. Privately provided public goods in a large economy: the limits of altruism. Journal of Public Economics 35:57-73.
7. Andreoni, J.1989. Giving with impure altruism: applications to charity and Ricardian equivalence. Journal of Political Economy 97:1147-58.
8. Andreoni, J.1990. Impure altruism and donations to public goods: a theory of warm glow giving. Economic Journal 100:464-77.
9. Andreoni, J.1993. An experimental test of the public-goods crowding-out hypothesis. American Economic Review 83:1317-27.
10. Andreoni, J.1995. Warm-glow versus cold-pickle: the effects of positive and negative framing on cooperation experiments. Quarterly Journal of Economics 110:2-21.
11. Andreoni, J. 1998. Towards a theory of charitable fund-raising. Journal of Political Economy 106:1186-1213.
12. Andreoni, J.2006. Philanthropy. In Handbook of the Economics of Giving, Altruism, and Reciprocity (ed. L. A. Gerard-Vared, S.-C. Kolm, and J. M. Ythier), Volume 2, Chapter 18. Elsevier.
13. Andreoni, J., and A. Payne. 2003. Do government grants to private charities crowd out giving or fund-raising? American Economic Review 93:792-812.
14. Andreoni, J., and R. Petrie. 2004. Public goods experiments without confidentiality: a glimpse into fund-raising. Journal of Public Economics 88:1605-23.
15. Angeletos, G.-M., D. Laibson, A. Repetto, J. Tobacman, and S.Weinberg. 2001. The hyperbolic consumption model: calibration, simulation, and empirical evaluation. Journal of Economic Perspectives 15(3):47-68.
16. Ariely, D., and K. Wertenbroch. 2002. Procrastination, deadlines and performance: selfcontrol by precommitment. Psychological Science 13(3):219-24.
17. Banks, J., R. Blundell, and S. Tanner. 1998. Is there a retirement-savings puzzle? American Economic Review 88:769-88.
18. Bayer, P. J., B. D. Bernheim, and J. K. Scholz. 1996. The effects of financial education in the workplace: evidence from a survey of employers. Mimeo, Stanford University.
19. Becker, G. 1974. A theory of social interactions. Journal of Political Economy 82:1063-93.
20. Becker, G., and K. Murphy. 1988.Atheory of rational addiction. Journal of Political Economy 96:675-700.
21. Benabou, R., and M. Pycia. 2002. Dynamic inconsistency and self-control. Economics Letters 77:419-24.
22. Bergstrom, T., L. Blume, and H. Varian. 1986. On the private provision of public goods. Journal of Public Economics 29:25-49.
23. Bernartzi, S. 2001. Excessive extrapolation and the allocation of 401(k) accounts to company stock. Journal of Finance 56:1747-64.
24. Bernartzi, S., and R. H. Thaler. 2001. Naïve diversification strategies in defined contribution savings plans. American Economic Review 91:71-98.
25. Bernheim, B. D. 1986. On the voluntary and involuntary provision of public goods. American Economic Review 76:789-93.
26. Bernheim, B. D.1988. Social security benefits: an empirical study of expectations and realizations. In Issues in Contemporary Retirement (ed. E. Lazear and R. Ricardo-Campbell), pp. 312-45.Stanford, CA: Hoover Institution Press.
27. Bernheim, B. D. 1989. The timing of retirement: a comparison of expectations and realizations. In The Economics of Aging (ed. D.Wise), pp. 335-55. NBER and University of Chicago Press.
28. Bernheim, B. D. 1994. Personal saving, information, and economic literacy: new directions for public policy. In Tax Policy for Economic Growth in the 1990s, pp. 53-78. Washington, DC: American Council for Capital Formation.
29. Bernheim, B. D.1995. Do households appreciate their financial vulnerabilities? An analysis of actions, perceptions, and public policy. In Tax Policy for Economic Growth in the 1990s, pp. 1-30. Washington, DC: American Council for Capital Formation.
30. Bernheim, B. D.1998. Financial illiteracy, education, and retirement saving. In Living with Defined Contribution Pensions (ed. O. S. Mitchell and S. J. Schieber), pp. 38-68. University of Pennsylvania Press.
31. Bernheim, B. D., and D. M. Garrett. 2003. The effects of financial education in theworkplace: evidence from a survey of households. Journal of Public Economics 87:1487-519.
32. Bernheim, B. D., and A. Rangel. 2004. Addiction and cue-triggered decision processes. American Economic Review 94:1558-90.
33. Bernheim, B. D. 2005a. Behavioral welfare economics. Manuscript.
34. Bernheim, B. D.2005b. Savings and cue-triggered decision processes. Manuscript.
35. Bernheim, B. D.Forthcoming. From neuroscience to public policy: a new economic view of addiction. Swedish Economic Policy Review.
36. Bernheim, B. D., D. Ray, and S.Yeltekin. 1999. Self-control, saving, and the low asset trap. Mimeo, Stanford University.
37. Bernheim, B. D., D. M. Garrett, and D. Maki. 2001a. Education and saving: the long-term effects of high school financial curriculum mandates. Journal of Public Economics 80:435-65.
38. Bernheim, B. D., J. Skinner, and S. Weinberg. 2001b. What accounts for the variation in retirement wealth among U.S. households? American Economic Review 91:832-57.
39. Bernheim, B. D., L. Forni, J. Gokhale, and L. Kotlikoff. 2002. An economic approach to setting retirement saving goals. In Innovations in Financing Retirement (ed. O. Mitchell, Z. Bodie, B. Hammond, and S. Zeldes), pp. 77-105. University of Pennsylvania Press.
40. Berridge, K. 1996. Food reward: brain substrates of wanting and liking. Neuroscience and Biobehavioral Reviews 20:1-25.
41. Berridge, K.1999. Pleasure, pain, desire, and dread: hidden core processes of emotion. In Well- Being: The Foundations of Hedonic Psychology (ed. D. Kaheman, E. Diener, and N. Schwarz), pp. 525-57. NewYork: Russell Sage Foundation.
42. Berridge, K., and T. Robinson. 1998. What is the role of dopamine in reward: hedonic impact, reward learning, or incentive salience? Brain Research Review 28:309-69.
43. Berridge, K., and T. Robinson.2003. Parsing reward. Trends in Neuroscience 26:507-13.
44. Bhattacharya, J., and D. Lakdawalla. 2004.Time-inconsistency and welfare. Mimeo, Stanford University.
45. Blinder, A. S. 1974. Toward an Economic Theory of Income Distribution. MIT Press.
46. Bolton, G. E., and A. Ockenfels. 2000. ERC: a theory of equity, reciprocity, and competition. American Economic Review 20:166-93.
47. Camerer, C. F. 2003. Behavioral Game Theory: Experiments in Strategic Interaction. Princeton University Press.
48. Center for Disease Control. 1993. Smoking-attributable mortality and years of potential life lost: United States, 1990. Morbidity and Mortality Weekly Report 42:645-48.
49. Chaloupka, F., and K. Warner. 2001. The economics of smoking. In Handbook of Health Economics (ed. J. Newhouse and D. Cutler). Amsterdam: North-Holland.
50. Choi, J. J., D. Laibson, B. C. Madrian, and A. Metrick. 2004. Optimal defaults and active decisions. Manuscript.
51. Choi, J. J., D. Laibson, B. C. Madrian, and A. Metrick.2006. Saving for retirement on the path of least resistance. In Behavioral Public Finance: Toward a New Agenda (ed. E. J. McCaffrey and J. Slemrod). NewYork: Russell Sage Foundation.
52. Clotfelter, C. 1985. Federal Tax Policy and Charitable Giving. University of Chicago Press.
53. Cohen, G. A. 1989. On the currency of egalitarianism justice. Ethics 99:906-44.
54. Coller, M., G. W. Harrison, and E. E. Rutström. 2003. Are discount rates constant? Reconciling theory and observation,Working Paper 3-31, Department of Economics, College of Business Administration, University of Central Florida.
55. Consumer Federation of America and the American Express Company. 1991. High School Competency Test: Report of Findings,Washington, DC.
56. Cornes, R., and T. Sandler. 1984. Easy riders, joint production and public goods. Economic Journal 94:580-98.
57. Cronqvist, H., and R. H. Thaler. 2004. Design choices in privatized social security systems: learning from the Swedish experience. American Economic Review 94:424-28.
58. de Quervain, D., U. Fischbacher, V. Treyer, M. Schellhammer, U. Schnyder, A. Buck, and E. Fehr. 2004. The neural basis of altruistic punishment. Science 305:1254-58.
59. Diamond, P. 2006. Optimal tax treatment of private contributions for public goods with and without warm-glow preferences. Journal of Public Economics 90:897-919.
60. Diamond, P., and J. Hausman. 1994. Contingent valuation: is some number better than no number? Journal of Economic Perspectives 8:45-64.
61. Diamond, P., and B. Koszegi. 2003. Quasi-hyperbolic discounting and retirement. Journal of Public Economics 87:1839-72.
62. Di Chiara, G. 1999. Drug addiction as dopamine-dependent associative learning disorder. European Journal of Pharmacology 375:13-30.
63. Dockner, E. J., and G. Feichtinger. 1993. Cyclical consumption patterns and rational addiction. American Economic Review 83:256-63.
64. Doyle Jr., R. J., and E. T. Johnson. 1991. Readings in Wealth Accumulation Planning, 4th edn. Bryn Mawr, PA: The American College.
65. DSM-IV. 1994. Diagnostic and Statistical Manual of Mental Disorders, 4th edn.Washington, DC: American Psychiatric Association.
66. Duflo, E., and E. Saez. 2002. Participation and investment decisions in a retirement plan: the influence of colleagues' choices. Journal of Public Economics 85:121-48.
67. Duflo, E., and E. Saez.2003. The role of information and social interactions in retirement plans decisions: evidence from a randomized experiment. Quarterly Journal of Economics 118:815-42.
68. Engen, E. M., W. G. Gale, and J. K. Scholz. 1994. Do saving incentives work? Brookings Papers on Economic Activity 1:85-151.
69. Fang, H., and D. Silverman. 2002. Time-inconsistency and welfare program participation: evidence from the NLSY. Cowles Foundation Discussion Paper 1465,Yale University.
70. Farkas, S., and J. Johnson. 1997. Miles to Go: A Status Report on Americans' Plans for Retirement. NewYork: Public Agenda.
71. Feenberg, D. R., and J. Skinner. 1989. Sources of IRA Saving. Tax Policy and the Economy, Volume 17, pp. 25-46. MIT Press.
72. Fehr, E., and S. Gächter. 2000. Cooperation and punishment in public good experiments. American Economic Review 90:980-94.
73. Fehr, E., and S. Gächter.2002. Altruistic punishment in humans. Nature 415:137-40.
74. Fehr, E., and U. Fischbacher. 2003. The nature of human altruism. Nature 425:785-89.
75. Fehr, E., and U. Fischbacher.2004. Social norms and human cooperation. Trends in Cognitive Sciences 8:185-90.
76. Fehr, E., and K. M. Schmidt. 1999. A theory of fairness, competition, and cooperation. Quarterly Journal of Economics 114:817-68.
77. Feldstein, M. 1985. The optimal level of social security benefits. Quarterly Journal of Economics 100:303-20.
78. Fernandez-Villaverde, J., and A. Mukherji. 2002. Can we really observe hyperbolic discounting? Mimeo, University of Pennsylvania.
79. Fisher, I. 1930. The Theory of Interest. London: Macmillan.
80. Frederick, S., G. Loewenstein, and T. O'Donoghue. 2002. Time discounting and time preference:a critical review. Journal of Economic Literature 40:351-401.
81. Fudenberg, D., and D. K. Levine. 2005.A dual self-model of impulse control. UCLA Department of EconomicsWorking Paper.
82. Gardner, E., and J. David. 1999. The neurobiology of chemical addiction. In Getting Hooked: Rationality and Addiction (ed. J. Elster and O.-J. Skog). Cambridge University Press.
83. Goldstein, A. 2001. Addiction: From Biology to Drug Policy, 2nd edn. Oxford University Press.
84. Goldstein, A., and H. Kalant. 1990. Drug policy: striking the right balance. Science 249:1513-21.
85. Gravelle, J. 1991. Do individual retirement accounts increase savings? Journal of Economic Perspectives 5:133-48.
86. Gross, D., and N. Souleles. 2002. Do liquidity constraints and interest rates matter for consumer behaviors? Evidence from credit card data. Quarterly Journal of Economics 117: 149-86.
87. Gruber, J., and B. Koszegi. 2001. Is addiction "rational"? Theory and evidence. Quarterly Journal of Economics 116:1261-303.
88. Gruber, J., and B. Koszegi.2004.A theory of government regulation of addictive bads: tax levels and tax incidence for cigarette excise taxation. Journal of Public Economics 88:1959-87.
89. Gul, F., andW. Pesendorfer. 2001. Temptation and self-control. Econometrica 69:1403-35
90. Gul, F., andW. Pesendorfer.2004a. Self-control, revealed preference and consumption choice. Review of Economic Dynamics 7:243-264.
91. Gul, F., andW. Pesendorfer.2004b. Self-control and the theory of consumption. Econometrica 72:119-158.
92. Gul, F., andW. Pesendorfer.Forthcoming. Harmful addiction. Review of Economic Studies.
93. Hammermesh, D. S. 1984. Consumption during retirement: the missing link in the life cycle. Review of Economics and Statistics 66:1-7.
94. Harbaugh,W. 1998. What do donations buy?A model of philanthropy based on prestige and warm-glow. Journal of Public Economics 67:269-84.
95. Harris, J. E. 1993. Deadly Choices: Coping with Health Risks in Everyday Life. New York: Basic Books.
96. Hausman, J. A., and L. Paquette. 1987. Involuntary early retirement and consumption. In Work, Health, and Income Among the Elderly (ed. G. Burtless), pp. 151-75.Washington, DC: Brookings Institution Press.
97. Holden, S., J.VanDerhei, and C. Quick. 2001. 401(k) plan asset allocation, account balances, and loan activity in 1998. Perspective 6(1):1-23
98. Hser,Y. I., D. Anglin, and K. Powers. 1993.A 24-year follow-up study of California narcotics addicts. Archives of General Psychiatry 50:577-84.
99. Hser,Y. I., V. Hollman, C. Grella, and M. D. Anglin. 2001. A 33-year follow-up of narcotics addicts. Archives of General Psychiatry 58:503-8.
100. Hurd, M., and K. McGarry. 2002.The predictive validity of subjective probabilities of survival.Economic Journal 112:966-85.
101. Hurd, M., and S. Rohwedder. 2003. The retirement-consumption puzzle: anticipated and actual declines in spending at retirement. NBERWorking Paper 9586.
102. Hyman, S., and R. Malenka. 2001. Addiction and the brain: the neurobiology of compulsion and its persistence. Nature Reviews Neuroscience 2:695-703.
103. Iannacone, L. R. 1986. Addiction and satiation. Economic Letters 21:95-99.
104. Imrohoroglu, S., A. Imrohoroglu, and D. Joines. 2003. Time inconsistent preferences and social security. Quarterly Journal of Economics 118:745-84.
105. Isaac, M., and J. Walker. 1988. Group size effects in public goods provision: the voluntary contributions mechanism. Quarterly Journal of Economics 103:179-99.
106. Jones, S. R. G. 1984. The Economics of Conformism. Oxford: Basil Blackwell.
107. Katona, G. 1975. Psychological Economics. Elsevier.
108. Kelley, A. E. 1999. Neural integrative activities of nucleus accumbens subregions in relation to motivation and learning. Psychobiology 27:198-213.
109. Kingma, R. 1989.An accurate measurement of the crowd-out effect, income effect, and price effect for charitable contributions. Journal of Political Economy 97:1197-1207.
110. Koszegi. 2002. Note: any model features an untestable assumption about preferences. Manuscript, University of California, Berkeley.
111. Krusell, P., and A. Smith. 2003. Consumption-saving decisions with quasi-geometric discounting. Econometrica 71:365-75.
112. Krusell, P., B. Kuruscu, and A. Smith. 2000. Tax policy with quasi-geometric discounting. International Economic Journal 14:1-40.
113. Krusell, P., B. Kuruscu, and A. Smith. 2001. Temptation and taxation. Mimeo, Princeton University.
114. Krusell, P., B. Kuruscu, and A. Smith. 2002. Equilibrium welfare and government policy with quasi-geometric discounting.Journal of Economic Theory 105:42-72.
115. Laibson, D. 1994. Self-control and saving. Mimeo, MIT.
116. Laibson, D. 1997. Golden eggs and hyperbolic discounting. Quarterly Journal of Economics 112:443-77.
117. Laibson, D. 2001. A cue-theory of consumption. Quarterly Journal of Economics 116:81-120.
118. Laibson, D., A. Repetto, and J. Tobacman. 2003. A debt puzzle. In Knowledge, Information,and Expectations in Modern Economics: In Honor of Edmund Phelps (ed. P. Aghion,R. Frydman, J. Stiglitz, and M.Woodford). Princeton University Press.
119. Laibson, D., A. Repetto, and J. Tobacman. Forthcoming. Estimating discount functions from lifecycle consumption choices.NBERWorking Paper.
120. Lazear, E. P. 1994. Some thoughts on saving. In Studies in the Economics of Aging (ed. D. A. Wise), pp. 143-69. University of Chicago Press and NBER.
121. Ledyard, J. 1995. Public goods: a survey of experimental research. In Handbook of Experimental Economics (ed. J. Kagel and A. Roth), pp. 111-94. Princeton University Press.
122. List, J.A. 2001. Do explicitwarnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sportscards. American Economic Review 91:1498-507.
123. Loewenstein, G. 1996. Out of control: visceral influences on behavior. Organizational Behavior and Human Decision Processes 65:272-92.
124. Loewenstein, G. 1999. A visceral account of addiction. In Rationality and Addiction (ed. J. Elster and O.-J. Skog). Cambridge University Press.
125. Loewenstein, G., and T. O'Donoghue. 2004. Animal spirits: affective and deliberative processes in economic behavior. Manuscript.
126. Loewenstein, G., and D. Schkade. 1999. Wouldn't it be nice? Predicting future feelings. In Well-Being: The Foundations of Hedonic Psychology (ed. D. Kahneman, E. Diener, and N. Schwarz), pp. 85-104. NewYork: Russell Sage Foundation.
127. Loewenstein, G., T. O'Donoghue, and M. Rabin. 2003a. Projection bias in predicting future utility. Quarterly Journal of Economics 118:1209-48.
128. Loewenstein, G., D. Read, and R. Baumister (eds). 2003b. Time and Decision: Economic and Psychological Perspectives on Intertemporal Choice. NewYork: Russell Sage Foundation.
129. Long, J. E. 1990. Marginal tax rates and IRA contributions. National Tax Journal 43:143-53.
130. Lusardi, A. 2000. Saving for retirement: the importance of planning. Research Dialogue, No. 66. TIAA-CREF Institute.
131. Lusardi, A. 2003. Planning and savings for retirement. Mimeo, Dartmouth College.
132. MacCoun, R., and P. Reuter. 2001. Drug War Heresies: Learning from Other Vices, Times, and Places. Cambridge University Press.
133. Madrian, B., and D. Shea. 2001. The power of suggestion: inertian in 401(k) participation and savings behavior. Quarterly Journal of Economics 116:1149-87.
134. Mariger, R. P. 1987. A life-cycle consumption model with liquidity constraints: theory and empirical results. Econometrica 55:533-57.
135. Masclet, D., C. Noussair, S. Tucker, and M.-C. Villeval. 2003. Monetary and non-monetary punishment in the voluntary contributions mechanisms. American Economic Review 93:366-80.
136. McCabe, K., D. Houser, L. Ryan,V. Smith, and T. Trouard. 2001.A functional imaging study of cooperation in two-person reciprocal exchange. Proceedings of the National Academy of Sciences 98:11 832-835.
137. McCaffrey, E., and J. Slemrod. 2006. Toward an agenda for behavioral public finance. In Behavioral Public Finance: Toward a New Agenda (ed. E. J. McCaffrey and J. Slemrod), pp. 304-51. NewYork: Russell Sage Foundation.
138. McClure, S., D. I. Laibson, G. Loewenstein, and J. D. Cohen. 2004. Separate neural systems value immediate and delayed monetary rewards. Science 306:503-7.
139. Metcalfe, J., and W. Mischel. 1999. A hot/cool-system analysis of delay of gratification: dynamics of willpower. Psychological Review 106:3-19.
140. Mischel, W. 1974. Processes in delay of gratification. In Advances in Experimental Social Psychology (ed. D. Berkowitz), Volume 7, pp. 249-72. Academic Press.
141. Mischel,W., and B. Moore. 1973. Cognitive appraisals and transformations in delay of gratification. Journal of Personality and Social Psychology 28:172-79.
142. Mischel,W.,Y. Shoda, and M. Rodriguez. 1992. Delay of gratification in children. In Choice Over Time (ed. G. Loewenstein and J. Elster). NewYork: Russell Sage Foundation.
143. Modigliani, F., and R. Brumberg. 1954. Utility analysis and the consumption function: an interpretation of cross-section data. In Post Keynsian Economics (ed. K. K. Kurihara). Rutgers University Press.
144. National Institute on Alcohol Abuse and Alcoholism. 2001. Economic perspectives in alcoholism research. Alcohol Alert Magazine No. 51. Bethesda, MD: National Institutes of Health.
145. National Institute on Drug Abuse. 1998. The Economic Costs of Alcohol and Drug Abuse in the United States, 1992. Bethesda, MD: National Institutes of Health.
146. Nestler, E. J. 2001. Molecular basis of long-term plasticity underlying addiction. Nature Reviews Neuroscience 2:119-28.
147. Nestler, E. J., and R. C. Malenka. 2004. The addicted brain. Scientific American 290:78-85.
148. Norstrom, Th., and O.-J. Skog. 2005. Saturday opening and alcohol retail shops in Sweden: an experiment in two phases. Addiction 100:767-76.
149. O'Brien, C. 1976. Experimental analysis of conditioning factors in human narcotic addiction. Pharmacological Review 25:533-43.
150. O'Brien C. 1997.A range of research-based pharmacotherapies for addiction. Science 278:66-70.
151. O'Donoghue, T., and M. Rabin. 1999a. Procrastination in preparing for retirement. In Behavioral Dimensions of Retirement Economics (ed. H. J. Aaron), pp. 125-56. Washington, DC: Brookings Institution Press.
152. O'Donoghue, T., and M. Rabin. 1999b. Doing it now or later. American Economic Review 89:103-24.
153. O'Donoghue, T., and M. Rabin. 2001. Choice and procrastination. Quarterly Journal of Economics 116:121-60.
154. O'Donoghue, T., and M. Rabin. 2005. Optimal sin taxes. Manuscript. UCLA Department of Economics. Office of National Drug Control Policy. 2001a. What American users spend on illegal drugs. Publication No. NCJ-192334.Washington, DC: Executive Office of the President.
155. O'Donoghue, T., and M. Rabin. 2001b. The economic costs of drug abuse in the United States, 1992-1998. Publication No. NCJ-190636.Washington, DC: Executive Office of the President.
156. O'Neill, B. 1993. Assessing America's financial IQ: realities, consequences, and potential for change. Mimeo, Rutgers Cooperative Extension.
157. Ornstein, S. I., and D. M. Hanssens. 1985. Alcohol control laws and the consumption of distilled spirits and beer. Journal of Consumer Research 12:200-12.
158. Orphanides, A., and D. Zervos. 1995. Rational addiction with learning and regret. Journal of Political Economy 103:739-58.
159. Orphanides, A., and D. Zervos. 1998. Myopia and addictive behavior. Economic Journal 108:75-91.
160. Palfrey, T., and J. Prisbrey. 1997. Anomalous behavior in public goods experiments: how much and why? American Economic Review 87:829-46.
161. Paserman, D. 2002. Job search and hyperbolic discounting: structural estimation and policy evaluation. CEPR Discussion Paper 4396.
162. Phelps, E., and R. Pollack. 1968. On second-best national savings and game equilibrium growth. Review of Economic Studies 35:185-99.
163. Prelec, D., and G. Loewenstein. 1998. The red and the black: mental accounting of savings and debt. Marketing Science 17:4-28.
164. Rabin, M. 2002. A perspective on psychology and economics. European Economic Review 46:657-85.
165. Redish, A. D. 2004. Addiction as a computational process gone awry. Science 306:1944-47.
166. Rilling, J., D. Gutman, T. Zeh, G. Pagnoni, G. Berns, and C. Kilts. 2002. A neural basis for social cooperation. Neuron 35:395-405.
167. Rilling, J. K., A. G. Sanfey, J. A. Aronson, L. E. Nystrom, and J. D. Cohen. 2004. Opposing BOLD responses to reciprocated and unreciprocated altruism in putative reward pathways. Neuroreport 15:2539-43.
168. Robb, A. L., and J. B. Burbidge. 1989. Consumption, income, and retirement. Canadian Journal of Economics 22:522-42.
169. Robbins, T.W., and Everitt, B. J. 1999. Interaction of depaminergic system with mechanisms of associative learning and cognition: implications for drug abuse. Psychological Science 10:199-202.
170. Roberts, R. 1984.A positive model of private charity and public transfers. Journal of Political Economy 92:136-48.
171. Robins, L. 1993. Vietnam veterans' rapid recovery from heroin addiction: a fluke or normal expectation. Addiction 88:1041-54.
172. Robins, L., D. Davis, and D. Goodwin. 1974. Drug use by U.S.Army enlisted men inVietnam: a follow-up on their return home. American Journal of Epidemiology 99:235-49.
173. Robinson, T., and K. Berridge. 1993. The neural basis of drug craving: an incentivesensitization theory of addiction. Brain Research Reviews 18:247-91.
174. Robinson, T., and K. Berridge. 2000. The psychology and neurobiology of addiction: an incentive sensitization view. Addiction (Suppl.) 2:91-117.
175. Robinson, T., and K. Berridge. 2003. Addiction. Annual Reviews of Psychology 54:25-53.
176. Roemer, J. E. 1998. Equality of Opportunity. Harvard University Press.
177. Rose-Ackerman, S. 1996. Altruism, nonprofits, and economic theory. Journal of Economic Literature 34:701-28.
178. Scholz, J. K., A. Seshadri, and S. Khitatrakun. 2004. Are Americans saving adequately for retirement? Mimeo, University ofWisconsin, Madison.
179. Schultz,W. 1998. Predictive reward signal of dopamine neurons. Journal of Neurophysiology 80:1-27.
180. Schultz,W. 2000. Multiple reward signals in the brain. Nature Reviews Neuroscience 1:199-207.
181. Schultz,W., P. Dayan, and P. R. Montague. 1997.A neural substrate of prediction and reward. 275:1593-99.
182. Schwarz, N., and F. Strack. 1999. Reports of subjective well-being: judgmental processes and their methodological implications. In Well-Being: The Foundations of Hedonic Psychology (ed. D. Kahneman, E. Diener, and N. Schwarz), pp. 61-84. New York: Russell Sage Foundation.
183. Scitovsky, T. 1976. The Joyless Economy. Oxford University Press.
184. Sefton, M., R. Shupp, and J.Walker. 2002. The effect of rewards and sanctions in the provision of public goods. CEDEX Research Paper, University of Nottingham.
185. Sen, A. 1992. Inequality Reexamined. Harvard University Press.
186. Shang, J., and R. Croson. 2005. Field experiments in charitable contributions: the impact of social influence on the voluntary provision of public goods. Manuscript, University of Pennsylvania.
187. Shiv, B., and A. Fedorikhin. 1999. Heart and mind in conflict: the interplay of affect and cognition in consumer decision making. Journal of Consumer Research 26:72-89.
188. Singer, T., S. J. Kiebel, J. S.Winston, R. J. Dolan, and C. D. Frith. 2004. Brain responses to the acquired moral status of faces. Neuron 41:653-62.
189. Steinberg, R. 1987.Voluntary donations and public expenditures in a federalist system. American Economic Review 77:24-36.
190. Stigler, G., and G. Becker. 1977. De gustibus non est disputandum. American Economic Review 67:76-90.
191. Strotz, R. H. 1955/56. Myopia and inconsistency in dynamic utility maximization. Review of Economic Studies 23:165-80.
192. Sugden, R. 2004. The opportunity criterion: consumer sovereignty without the assumption of coherent preferences. American Economic Review 94:1014-33.
193. Summers, L. H. 1986. Summers replies to Galper and Byce on IRAs. Tax Notes 31:1014-16.
194. Sunstein, C., and Thaler, R. 2003. Libertarian paternalism. American Economic Review 93:175-79.
195. TM: using behavioral economics to increase employee saving. Journal of Political Economy 112(S1):164-187.
196. Thaler, R., and H. M. Shefrin. 1981. An economic theory of self-control. Journal of Political Economy 89:392-406.
197. Tigerstedt, C., and C. Sutton. 2000. Exclusion and inclusion: Saturday closings and selfservice stores. In Broken Spirits: Power and Ideas in Nordic Alcohol Control (ed. P. Sulkunen, C. Sutton, C. Tigerstedt, and K. Warpenius), pp. 185-201. Helsinki: Nordic Council for Alcohol and Drug Research.
198. Trosclair, A., C. Huston, L. Pederson, and I. Dillon. 2002. Cigarette smoking among adults: United States, 2000. Morbidity and Mortality Weekly Report 51:642-45.
199. Tversky, A., and D. Kahneman. 1986. Rational choice and the framing of decisions. Journal of Business 59:5251-78.
200. United States Census Bureau. 2001. Statistical Abstract of the United States. Washington, DC: U.S. Government Printing Office.
201. United States Department of Health and Human Services. 1994. Preventing tobacco use among young people: a report of the Surgeon General. Atlanta, GA: National Center for Chronic Disease Prevention and Health Promotion, Office of Smoking and Health.
202. Venti, S. F., and D. A.Wise. 1992. Government Policy and Personal Retirement Saving. Tax Policy and the Economy, Volume 6, pp. 1-41. MIT Press.
203. Walstad, W. B., and M. Larsen. 1992. A national survey of American economic literacy. National Council on Economics Education.
204. Walstad, W. B., and J. C. Soper. 1988. A report card on the economic literacy of U.S. high school students. American Economic Review 78:251-56.
205. Warshawsky, M. 1987. Sensitivity to market incentives: the case of policy loans. Review of Economics and Statistics 69:286-95.
206. Warr, P. 1982. Pareto optimal redistribution and private charity. Journal of Public Economics 19:131-38.
207. Wertenbroch, K. 1998. Consumption and self-control for rationing purchase quantities of virtue and vice. Marketing Science 17:317-37.
208. Wickelgren, I. 1997. Getting the brain's attention. Science 278:35-37.
209. Winston, G. C. 1980.Addiction and backsliding: a theory of compulsive consumption. Journal of Economic Behavior and Organization 1:295-324.
210. Wise, R. 1989. The brain and reward. In The Neuropharmacological Basis of Reward (ed. J. M. Liebman and S. J. Cooper), pp. 377-424. Oxford University Press.
211. Yerak, B. 2001. Program helps gamblers quit. Detroit News, December 2, 2001.
212. Elster, J. 1984. Ulysses and Sirens: Studies in Rationality and Irrationality, revised edn. Cambridge University Press.
213. Mill, J. S. 1861. Considerations of representative government. In John Stuart Mill. Utilitar ianism: On Liberty and Considerations on Representative Government (ed. H. B. Acton, 1972). London: J. M. Dent & Sons.
214. Sen, A. 1992. Minimal liberty. Economica 59:139-59.
215. Tawney, R. H. 1966. Land and Labor in China (reprint of 1932 edn). Boston, MA: Beacon Press.
216. Duflo, E., W. Gale, J. Liebman, P. Orszag, and E. Saez. 2005. Saving incentives for low-and middle-income families: evidence from a field experiment with H&R block. NBER Working Paper 11680.
217. Eckel, C., and P. J. Grossman. 2003. Rebate versus matching: does how we subsidize charitable contributions matter? Journal of Public Economics 87:681-701.
218. Madrian, B., and D. Shea. 2001. The power of suggestion: inertia in 401(k) participation and savings behavior. Quarterly Journal of Economics 116:1149-87.
219. Orszag, P. R. 2005. Improving retirement security. Testimony to the Committee on Ways and Means, U.S. House of Representatives, May 19, 2005.