Reminders Work, but for Whom? Evidence from New York City Parking Ticket Recipients

Ori Heffetz, Ted O'Donoghue and Henry S. Schneider

American Economic Journal: Economic Policy, 2022, vol. 14, issue 4, 343-70

Abstract: We investigate heterogeneity in responsiveness to reminder letters among New York City parking ticket recipients. Using variation in the timing of letters, we find a strong aggregate response. But we find large differences across individuals: those with a low baseline propensity to respond to tickets—a natural nudge target—react least to letters. These low-response types, who incur significant late penalties, disproportionately come from already disadvantaged groups. They do react strongly to traditional, incentive-based interventions. We discuss how accounting for response heterogeneity might change one's approach to policy and how one might use our analysis to target interventions at low-response types.

JEL-codes: D04 D12 D91 H71 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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DOI: 10.1257/pol.20200400

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