Speaking of behavioral stuff, Blattman mentioned an IZA paper that studied lottery winners and their neighbors. Winners got a BMW. Most of them sold it within six months and kept the cash.
*but*Relative wealth effects.
…having an immediate neighbor win the PCL raises the probability that a household will buy a car in the next six months by close to 7 percentage points and reduces the mean age of its main car at the survey date by half a year (about a 7 percent decline). Relative to the modest effects of the lottery prizes on the consumption choices of winning households, these effects on neighbors are large.
Update: The Economist has a review on an innovation book refuting a few of the claims made in the video: "The let-them-loose approach spreads resources thinly and indiscriminately. ... Managers have to spend weeks sorting through the chaff to find a few grains of wheat."