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

Author

Listed:
  • Judith Favereau
  • Nicolas Brisset

    (Université Côte d'Azur, France
    GREDEG CNRS)

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.

Suggested Citation

  • Judith Favereau & Nicolas Brisset, 2016. "Randomization of What? Moving from Libertarian to "Democratic Paternalism"," GREDEG Working Papers 2016-34, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2016-34
    as

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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2016-34.pdf
    File Function: First version, 2016
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Randomization; Behavioral Economics; Experimental Economics; Causality; Poverty; Paternalism;

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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