People and policy : behavioural economics and its policy implications

Dickson, Alex and Fongoni, Marco (2015) People and policy : behavioural economics and its policy implications. Fraser of Allander Economic Commentary, 38 (3). pp. 93-106. ISSN 2046-5378

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    Abstract

    The standard approach of economic modelling and policy analysis is to assume that people are homo economicus: a rational and self-interested economic man. However, a well-documented body of evidence suggests that human decision makers depart from this assumption in several interesting ways. This paper explores three key behavioural aspects – loss aversion; present-biased preferences; and social preferences. It considers the evidence to support them; how behavioural economists have modified economic models to capture the implications of each modification; and how they offer new insights on the scope and efficacy of a wide range of policy interventions.

    Creators(s): Dickson, Alex ORCID logoORCID: https://orcid.org/0000-0001-9386-9036 and Fongoni, Marco ORCID logoORCID: https://orcid.org/0000-0001-7096-2107;
    Item type:Article
    ID code:52087
    Keywords:behavioural economics, loss aversion, reference-dependent preferences, present-biased preferences, social preferences, procrastination, reciprocity, public policy, Economic Theory, Commerce, Economics, Econometrics and Finance(all)
    Subjects:Social Sciences > Economic Theory
    Social Sciences > Commerce
    Department:Strathclyde Business School > Economics
    Strathclyde Business School > Fraser of Allander Institute
    Depositing user: Pure Administrator
    Date deposited:04 Mar 2015 16:39
    Last modified:15 May 2020 00:44
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/52087
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