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How to Allocate Money?

Piotr Dworczak

American Economic Journal: Microeconomics2026https://doi.org/10.1257/mic.20230263article
AJG 3ABDC A*
Weight
0.50

Abstract

I study a simple equity-efficiency problem: A designer allocates a fixed amount of money to a population of agents differing in privately observed marginal values for money. She can only screen by imposing an “ordeal”—that is, by allocating more money to agents who engage in a socially wasteful activity (such as queuing or filling out forms). Giving a lumpsum transfer is outperformed by an ordeal mechanism when agents with the lowest money-denominated cost of engaging in the wasteful activity have an expected value for money that exceeds the average value by more than a factor of two. (JEL D63, D82, H23, I38)

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https://doi.org/https://doi.org/10.1257/mic.20230263

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@article{piotr2026,
  title        = {{How to Allocate Money?}},
  author       = {Piotr Dworczak},
  journal      = {American Economic Journal: Microeconomics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1257/mic.20230263},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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