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Behavioral economics and the ‘new’ paternalism1

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  • Kapeliushnikov, Rostislav

Abstract

The paper provides a critical appraisal of the normative program of behavioral economics known as ‘new paternalism’. First, it explores the theoretical foundations of behavioral economics, describes major behavioral anomalies associated with bounded rationality of economic agents and discusses its normative principles and political implications. It then discusses the main empirical and conceptual drawbacks of new paternalism and provides arguments for the alternative non-welfarist normative tradition based on the idea of freedom.

Suggested Citation

  • Kapeliushnikov, Rostislav, 2015. "Behavioral economics and the ‘new’ paternalism1," Russian Journal of Economics, Elsevier, vol. 1(1), pages 81-107.
    • Handle: RePEc:eee:rujoec:v:1:y:2015:i:1:p:81-107
    DOI: 10.1016/j.ruje.2015.05.004
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    More about this item

    Keywords

    behavioral economics; welfare economics; new paternalism; normative analysis.;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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