Economic Synopses

New working paper (with Tanga Mohr)

The title is “External Validity of Inferred Attribute Non-Attendance: Evidence from a Laboratory Experiment with Real and Hypothetical Payoffs”. Here is the abstract:

We consider differences in hypothetical and real payoff laboratory experiments using attribute non-attendance methods. Attribute non-attendance is an empirical approach that measures and accounts for when survey respondents ignore attributes in stated preference surveys. We use attribute non-attendance methods with data from an emissions permit experiment with real and hypothetical payments. Our conjecture is that attribute non-attendance may be more pronounced in hypothetical sessions and, once accounted for, hypothetical decisions and real decisions influenced by monetary payoffs will be more similar. In both treatments we find that the effect of the cost of an emissions permit on behavior differs if the cost is implicit or explicit. In inferred attribute non-attendance models with the real treatment data we find two classes of respondents with different behavior but no evidence of attribute non-attendance. With the hypothetical treatment data we find two classes of respondents with different behavior and evidence of attribute non-attendance on two of the four choice attributes.

And yes, it is the first paper where I’ve used lab experiment data. I received $2000 from the Education and Technology Fund to run the experiments as part of an upper level environmental economics class during Spring 2020. Students helped conduct the experiments in the lab and used it to write papers. Covid diminished the learning experience but the data are still good. We supplemented the lab experiment data with online experiment data the next year. I’ll be shocked if a referee doesn’t ask us to estimate the models separately.

Here is the link:

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