Behavioral spillovers

Abstract

What is a behavioral spillover? How can a spillover be uncovered from the data? What is the precise link between the underlying psychological theory of a spillover and the econometric assumptions which are necessary to estimate it? This paper draws on recent advancements in causal inference, behavioral economics, psychology, and neuroscience to develop a framework for the causal evaluation and interpretation of behavioral spillovers. A novel empirical research design is suggested and a guide for the empirical researcher is developed. Using this guide, the paper reevaluates a large number of existing empirical results and suggests an agenda for future research.