If the giver`s goal is to change behavior, it`s not enough to give the healthy thing - bran, let`s say - that you want them to eat. You also must give more bran than the recipient currently eats, that is, when he`s getting by without a grant. Any amount of bran he`s already eating - up to the amount of the grant - becomes cash, since he can substitute the gift bran for purchased bran, freeing up cash for anything else he might buy.

Joel Waldfogel

American economist

Scroogenomics

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Submitted by: bodr

Time of publication: December 14, 2012

Length: 435 characters

Favorited by: 0 member

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