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Identifying Inattention and Active Choice in Incomplete Social Assistance Takeup: The Case of WIC

Year: 2025

Type: preprint

Abstract: Existing literature on incomplete social assistance takeup points to two distinct behavioral mechanisms: inattention and active choice. We develop an econometric framework that semiparametrically identifies these mechanisms by exploiting institutional features common to public programs. Applying the framework to WIC, we compare two interventions: choice-nudging messages (CNM) and attention-boosting messages (ABM). While CNM increases takeup more because of its dynamic attention channel, ABM generates higher marginal value of public funds because its marginal participants are positively selected on willingness to pay. These results demonstrate that distinguishing inattention from active choice is crucial for both decomposing policy effects and evaluating welfare.

Source: RePEc: Research Papers in Economics

DOI: 10.48550/arxiv.2506.03457

Authors: Wang, Lei Bill, Ahn, Sooa

Institution: Bank of Korea

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

SDGs: No poverty, Reduced inequalities

Open Access status: green

OpenAlex ID: W4414959081

Cites:

Cited by: 1

Related to: 10