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Behavioural economics and policymaking: learning from the early adopters, ESRI working papers, no. 425, February 2012

Lunn, Pete (2012) Behavioural economics and policymaking: learning from the early adopters, ESRI working papers, no. 425, February 2012. [Working Paper]

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    Abstract

    This paper critically examines initial applications of Behavioural Economics (BE) to policymaking. It focuses primarily but not exclusively on what can be learnt from the early adopters of policies inspired by BE, notably America and Britain. BE is defined by its inductive scientific approach to economics, which can produce empirical demonstrations that are persuasive to policymakers facing practical problems. The analysis identifies three routes via which BE has influenced policy: (1) the theory of libertarian paternalism (“nudges”), (2) the provision of toolkits for policymakers seeking behavioural change, and (3) the expansion of the skill-set of applied economists (and scientists in related disciplines). The effectiveness of each route is assessed, in terms of the likelihood of successfully integrating scientific advances with policy development. The analysis concludes that (3) is the only route that can adapt to the ongoing and rapid evolution of what is a young science. Successful policy development is more likely where there is expert input and the capacity to engage in applied experimentation, piloting and evaluation. The implication is that countries, including Ireland, are more likely to reap the benefits of BE if they create an active and effective interface between applied economists and policymakers.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > External relations > EU-US
    Countries > U.K.
    EU policies and themes > Policies & related activities > economic and financial affairs > general
    EU policies and themes > EU institutions & developments > institutional development/policy > decision making/policy-making
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Economic and Social Research Institute (ESRI), Dublin > ESRI Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 24 Oct 2019 12:07
    Number of Pages: 27
    Last Modified: 24 Oct 2019 12:07
    URI: http://aei.pitt.edu/id/eprint/98272

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