Working Paper: NBER ID: w14271
Authors: Joshua Graff Zivin; Matthew Neidell
Abstract: In this paper, we investigate the dynamics of informational regulatory approaches by analyzing the impact of smog alerts issued on consecutive days on discretionary outdoor activities in Southern California. Short-run adjustments to transitory risk entail costs that are likely to influence the set of evasive actions pursued by those at risk. Our results confirm that the cost of intertemporally substituting activities is increasing over time: when alerts are issued on two successive days, any response on the first day has largely disappeared by the second day. Small reprieves from alerts, however, reset these costs. Our findings imply that a time-varying decision rule that accounts for multiple day air quality forecasts may improve social welfare.
Keywords: No keywords provided
JEL Codes: D80; I18; Q53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Smog alerts (Q53) | Attendance at the Los Angeles Zoo (Q26) |
| Smog alerts (Q53) | Attendance at the Griffith Park Observatory (Y91) |
| Smog alerts (second consecutive day) (Y10) | Attendance at the Los Angeles Zoo (Q26) |
| Smog alerts (second consecutive day) (Y10) | Attendance at the Griffith Park Observatory (Y91) |
| Smog alerts (three consecutive days) (Q53) | Attendance at the Los Angeles Zoo (Q26) |
| Smog alerts (three consecutive days) (Q53) | Attendance at the Griffith Park Observatory (Y91) |
| One-day reprieve from smog alerts (Q53) | Attendance at outdoor activities (Q26) |
| Vulnerable groups (children and elderly) (I14) | Response to smog alerts (Q52) |