Cash by any other name? Evidence on labeling from the UK Winter Fuel Payment

• 成果类型: Article
• 署名作者: Beatty, Timothy K. M.; Blow, Laura; Crossley, Thomas F.; O'Dea, Cormac
• 署名单位: University of California System; University of California Davis; University of London; London School Economics & Political Science; University of Essex
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2014.06.007
• 发表日期: 2014
• 页码: 86-96
• 关键词: Labeling; benefits; expenditure; regression discontinuity

摘要

Government transfers to individuals are often given labels indicating that they are designed to support the consumption of particular goods. Standard economic theory implies that the labeling of cash transfers or cash-equivalents should have no effect on spending patterns. We study the UK Winter Fuel Payment, a cash transfer to older households. Our empirical strategy nests a regression discontinuity design within an Engel curve framework We find robust evidence of a behavioral effect of labeling. On average households spend 47% of the WFP on fuel. If the payment were treated as cash, we would expect households to spend 3% of the payment on fuel. (C) 2014 Elsevier B.V. All rights reserved.