Cash by Any Other Name? Evidence on Labelling from the UK Winter Fuel Payment

Timothy Beatty, Laura Blow, Thomas Crossley () and Cormac O’Dea
Additional contact information
Laura Blow: Institute for Fiscal Studies
Cormac O’Dea: Institute for Fiscal Studies
Authors registered in the RePEc Author Service: Cormac O'Dea

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: Standard economic theory implies that the labelling of cash transfers or cash-equivalents (e.g. child benefits, food stamps) should have no effect on spending patterns. The empirical literature to date does not contradict this proposition. We study the UK Winter Fuel Payment (WFP), a cash transfer to older households. Exploiting sharp eligibility criteria in a regression discontinuity design, we find robust evidence of a behavioural effect of the labelling. On average households spend 41% of the WFP on fuel. If the payment was treated as cash, we would expect households to spend approximately 3% of the payment on fuel.

Keywords: labelling; benefits; expenditure. (search for similar items in EconPapers)
JEL-codes: D12 H24 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012-06
New Economics Papers: this item is included in nep-agr and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Cash by any other name? Evidence on labeling from the UK Winter Fuel Payment (2014)
Working Paper: Cash by any other name? Evidence on labelling from the UK Winter Fuel Payment (2011)
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