Randomization of What? Moving from Libertarian to "Democratic Paternalism"

Judith Favereau and Nicolas Brisset ()

No 2016-34, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: Esther Du o and Abhijit Banerjee within the J-PAL, promote the use of randomization as an ecient way of ghting poverty. Mainly, JPAL's project aims at testing what can be assimilated to nudging devices through randomization. Nevertheless, Du o recently changed her perspective from a kind of libertarian paternalism toward a stronger paternalistic view. The paper methodologically explains such a shift through the incapacity of J-PAL's use of randomization to give access to the whole process of poverty since it focuses only on the individual decision-making process. Our claim in this paper is that this shift for a stronger paternalism can be explained by a twofold failure of focusing only on the use of randomization: (1) the incapacity to show how individual behaviors are related to poverty, (2) randomization alone does not give access to an important determinant of the decision-making process, namely the social framework that embeds it.

Keywords: Randomization; Behavioral Economics; Experimental Economics; Causality; Poverty; Paternalism (search for similar items in EconPapers)
JEL-codes: B41 C9 D03 F63 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-12
New Economics Papers: this item is included in nep-hme
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