Limited higher order beliefs and the welfare effects of public information

Philippe Polomé ()
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Philippe Polomé: Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France

No 1325, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: We present results of a household-level survey on behaviors regarding refuses in the home waste-waters network. Interpreting survey results in a panel-data logit results show that most socio-economic and public good-related respondent’s characteristics do not play a significant role in explaining choices to discard in the home waste-waters network. The only significant regressor, apart from the nature of the refuse itself, is, by far, the belief that the respondent has about her neighbors’ and relatives’ discarding behavior. We use Dong’s endogeneity test [7] to show that that regressor is not endogenous. We argue that these results may be used by policymakers to reduce undesirable refuses in the home waste-waters network by means of properly designed nudges.

Keywords: Behavior; Endogeneity; Nonparametric; Panel data; Public good; Reputation; Waste-waters (search for similar items in EconPapers)
JEL-codes: C23 Q53 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1325

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