We show what the rational inattention model predicts about the treatment effect of information provided during a randomized control trial. This is a non-trivial question because the model implies optimal attention choice before, during, and after an information treatment. The predictions of the...

Policies to support the transition to a carbon-neutral economy are high on the policy agenda. Their effectiveness in reducing carbon emissions and their distributional consequences are actively debated. One key reason for the ongoing debate is that quantitative answers regarding the...