The Big Carrot: High Stake Incentives Revisited

Working Paper: CEPR ID: DP6666

Authors: Pablo Braasgarza; Teresa Garcamuoz; Shoshana Neuman

Abstract: This paper provides an empirical demonstration of high stakes incentives in relation to religious practice. It shows that, when both positive (carrot) and negative (stick) incentives are available, the former are more effective than the latter. Specifically, it is shown that beliefs in heaven are much more relevant than beliefs in hell when estimating the production of religious commodities (church-attendance and praying equations).

Keywords: carrot-stick; economics of religion; high stakes punishment and rewards

JEL Codes: C91; D64; Z13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
belief in heaven (Z12)church attendance (Z12)
belief in heaven (Z12)prayer habits (Z12)
disbelief in heaven (Y70)church attendance (Z12)
disbelief in heaven (Y70)prayer habits (Z12)
belief in hell (Z12)church attendance (Z12)
belief in hell (Z12)prayer habits (Z12)
lack of belief in heaven (Y70)religious practice (Z12)
lack of belief in hell (Y70)religious practice (Z12)

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