The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- Pieter Gautier, Paul Muller, Bas van der Klaauw, Michael Rosholm, and Michael Svarer
- Journal of Labor Economics, Vol. 36, no. 4 (October 2018), pages 1073-1125
Identifying policy relevant treatment effects from randomized experiments requires the absence of spillovers between participants and nonparticipants (SUTVA) or variation in observed treatment levels. We find that SUTVA is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that nonparticipants in the experiment regions find jobs slower after the introduction of the program, relative to workers in other regions. We estimate an equilibrium search model to identify the policy relevant treatment effect. A large-scale roll out of the program is shown to decrease welfare, while a standard partial microeconometric cost-benefit analysis concludes the opposite.