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We study response behavior of New York City parking-ticket recipients by analyzing administrative data on 6.6 million tickets issued to 2 million individuals over two years. Exploiting variation (from a policy change and a field experiment) in letters sent to recipients, we find that forgetting plays a major role in delay-letters seem to act mostly as reminders, with their content mattering little. Moreover, by studying an individual's behavior across multiple tickets, we find significant heterogeneity in underlying types, with different types reacting differently to deadlines and reminders. Failure to account for this heterogeneity yields biased-and sometimes incorrect-conclusions.
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Do poor households shop in a way that leaves money on the table? A simple way to maximize consumption, conditional on available cash, is to avoid regularly purchasing small amounts of nonperishable goods when bulk discounts are available at modestly larger quantities. Using two-week transaction diaries covering 48,501 purchases by 1,493 households in Tanzania, this paper finds that through bulk purchasing the average household could spend 8.7 percent less without reducing purchasing quantities. Several explanations for this pattern are investigated, and the most likely mechanisms are found to be worries about over-consumption of stocks and avoidance of social taxation. Contrary to prior work, there is little indication that liquidity constraints prevent poorer households in the sample from buying in bulk, possibly because the bulk quantities under examination are not very large.
Bulk Discount --- Consumption --- Household Consumption --- Household Welfare --- Liquidity Constraint --- Living Standards --- Macroeconomics and Economic Growth --- Poverty Reduction --- Tax Rate --- Taxation and Subsidies
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We study response behavior of New York City parking-ticket recipients by analyzing administrative data on 6.6 million tickets issued to 2 million individuals over two years. Exploiting variation (from a policy change and a field experiment) in letters sent to recipients, we find that forgetting plays a major role in delay-letters seem to act mostly as reminders, with their content mattering little. Moreover, by studying an individual's behavior across multiple tickets, we find significant heterogeneity in underlying types, with different types reacting differently to deadlines and reminders. Failure to account for this heterogeneity yields biased-and sometimes incorrect-conclusions.
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