Table of Contents

The Effects of Smoking in Young Adulthood on Smoking and Health Later in Life: Evidence Based on the Vietnam Era Draft Lottery

Daniel Eisenberg, University of Michigan at Ann Arbor - School of Public Health
Brian Rowe, University of Michigan - Department of Economics

Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns

Suresh de Mel, University of Peradeniya
David McKenzie, World Bank Development Research Group, Institute for the Study of Labor (IZA)
Christopher M. Woodruff, University of California, San Diego - Graduate School of International Relations and Pacific Studies (IRPS)

Does Irritation Induced by Charitable Direct Mailings Reduce Donations?

Merel Van Diepen, Erasmus University Rotterdam (EUR)
Bas Donkers, Erasmus University Rotterdam (EUR) - Erasmus School of Economics, Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics(ESE), EUR
Philip Hans Franses, Erasmus University Rotterdam (EUR) - Department of Econometrics

Honesty on the Streets - A Natural Field Experiment on Newspaper Purchasing

Gerald J. Pruckner, University Linz - Department of Economics
Rupert Sausgruber, University of Innsbruck - Department of Economics & Statistics


BEHAVIORAL & EXPERIMENTAL ECONOMICS ABSTRACTS

"The Effects of Smoking in Young Adulthood on Smoking and Health Later in Life: Evidence Based on the Vietnam Era Draft Lottery" Free Download
US Census Bureau Center for Economic Studies Paper No. CES-WP- 08-35

DANIEL EISENBERG, University of Michigan at Ann Arbor - School of Public Health
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BRIAN ROWE, University of Michigan - Department of Economics
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An important, unresolved question for health policymakers and consumers is whether cigarette smoking in young adulthood has significant lasting effects into later adulthood. The Vietnam era draft lottery offers an opportunity to address this question, because it randomly assigned young men to be more likely to experience conditions favoring cigarette consumption, including highly subsidized prices. Using this natural experiment, we find that military service increased the probability of smoking by 35 percentage points as of 1978-80, when men in the relevant cohorts were aged 25-30, but later in adulthood this effect was substantially attenuated and did not lead to large negative health effects.

"Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns" Free Download
World Bank Policy Research Working Paper No. 4746

SURESH DE MEL, University of Peradeniya
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DAVID MCKENZIE, World Bank Development Research Group, Institute for the Study of Labor (IZA)
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CHRISTOPHER M. WOODRUFF, University of California, San Diego - Graduate School of International Relations and Pacific Studies (IRPS)
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This paper analyzes data from a randomized experiment on mean returns to capital in Sri Lankan micro-enterprises. The findings show greater returns among men than among women; indeed, returns were not different from zero for women. The authors explore different explanations for the lower returns among female owners, and find no evidence that the gender gap is explained by differences in ability, risk aversion, or entrepreneurial attitudes. Differential access to unpaid family labor and social constraints limiting sales to local areas are not important. However, there is evidence that women invested grants differently from men. A smaller share of the smaller grants remained in the female-owned enterprises, and men were more likely to spend the grant on working capital and women on equipment. The gender gap is largest when male-dominated sectors are compared with female-dominated sectors, although female returns are lower than male returns even for females working in the same industries as men. The authors examine the heterogeneity of returns to determine whether any group of businesses owned by women benefit from easing capital constraints. The results suggest there is a large group of high-return male owners and a smaller group of poor, high-ability, female owners who might benefit from more access to capital.

"Does Irritation Induced by Charitable Direct Mailings Reduce Donations?" Free Download
ERIM Report Series Reference No. ERS-2008-036-MKT

MEREL VAN DIEPEN, Erasmus University Rotterdam (EUR)
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BAS DONKERS, Erasmus University Rotterdam (EUR) - Erasmus School of Economics, Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics(ESE), EUR
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PHILIP HANS FRANSES, Erasmus University Rotterdam (EUR) - Department of Econometrics
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Charities mainly rely on direct mailings to attract the attention of potential donators. Individuals may feel irritated by these mailings, in particular when they receive many mailings. We study the consequences of perceived irritation on stated behavior and on actual behavior. Target selection by charities likely results in good donators receiving many mailings and hence they might also be most irritated. Therefore, irritation with direct mailings might be endogenously determined. To create exogenous variation in irritation, we design a unique controlled field experiment in cooperation with five of the largest charities in the Netherlands. Our analysis reveals that direct mailings do result in irritation, but surprisingly this affects neither stated nor actual donating behavior.

"Honesty on the Streets - A Natural Field Experiment on Newspaper Purchasing" Free Download

GERALD J. PRUCKNER, University Linz - Department of Economics
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RUPERT SAUSGRUBER, University of Innsbruck - Department of Economics & Statistics
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A publisher uses an honor system for selling a newspaper in the street. The customers are supposed to pay, but they can also pay less than the price or not pay at all. We conduct an experiment to study honesty in this market. The results show that appealing to honesty increases payments, whereas reminding the customers of the legal norm has no effect. Furthermore, appealing to honesty does not affect the behavior of the dishonest. These findings suggest that some people have internalized an honesty norm, whereas others have not, and that the willingness to pay to obey the norm differs among individuals. In a follow-up survey study we find that honesty is associated with family characteristics, self-esteem, social connectedness, trust in the legal system, and compliance with tax regulations.

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National Bureau of Economic Research (NBER), Harvard University
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Harvard Business School, The Monitor Company, Social Science Electronic Publishing (SSEP), Inc.
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Advisory Board

Behavioral & Experimental Economics

MORRIS ALTMAN
Professor and Head, University of Saskatchewan - Economics

GERRIT ANTONIDES
Professor, Wageningen University and Research Center - Economics of Consumers and Households

OFER H. AZAR
Lecturer, Ben-Gurion University of the Negev - School of Management

COLIN CAMERER
Rea A. & Lela G. Axline Professor of Business Economics, California Institute of Technology - Division of the Humanities and Social Sciences

WERNER F.M. DEBONDT
Richard H. Driehaus Professor of Finance, DePaul University - Driehaus Center for Behavioral Finance

CATHERINE C. ECKEL
Professor, University of Texas at Dallas - Economics, Associate Professor of Economics, Virginia Polytechnic Institute & State University - Department of Economics

RICHARD FRANK
Margaret T. Morris Professor of Health Economics, Harvard Medical School, National Bureau of Economic Research (NBER)

URI GNEEZY
Assistant Professor of Behavioral Science, University of Chicago - Graduate School of Business

CLAIRE A. HILL
Professor, University of Minnesota, Twin Cities - School of Law

CATHLEEN A. JOHNSON
Director, Experimental Economics Group, Center for Interuniversity Research and Analysis on Organization (CIRANO)

DANIEL KAHNEMAN
Eugene Higgins Professor of Psychology and Professor of Public Affairs, Princeton University

BIJOU YANG LESTER
Professor of Economics, Drexel University - Department of Economics & International Business

JOHN A. LIST
Professor, University of Chicago - Department of Economics, National Bureau of Economic Research (NBER), Institute for the Study of Labor (IZA)

GEORGE LOEWENSTEIN
Professor of Economics and Psychology, Carnegie Mellon University - Department of Social and Decision Sciences

ROBERT J. OXOBY
Associate Professor, University of Calgary - Economics, Institute for the Study of Labor (IZA)

JOOST M.E. PENNINGS
Professor, University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics, Professor, Wageningen University and Research Center - School of Social Sciences

MICHAEL J. ROSZKOWSKI
Director, Institutional Research, La Salle University

HUGH SCHWARTZ
Visiting Professor, University of the Republic, Montevideo, Uruguay

ANDREI SHLEIFER
Harvard University - Department of Economics, Fellow, National Bureau of Economic Research (NBER), Fellow, European Corporate Governance Institute (ECGI)

PAUL SLOVIC
President, Decision Research, Professor, University of Oregon - Department of Psychology

GLENN E. SNELBECKER
Professor of Educational Psychology, Temple University - Psychological Studies in Education

CASS R. SUNSTEIN
Felix Frankfurter Professor of Law, Harvard University - Harvard Law School

RICHARD H. THALER
Robert P. Gwinn Professor of Behavioral Science and Economics, University of Chicago - Graduate School of Business, National Bureau of Economic Research (NBER)

JOHN F. TOMER
Professor of Economics, Manhattan College - Department of Economics and Finance

PAUL J. ZAK
Director, Claremont Graduate University - Center for Neuroeconomics Studies

JASON ZWEIG
Personal Finance Columnist, The Wall Street Journal