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Behavioral and Experimental Economics Do Inform Public Policy

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  • Arno Riedl

Abstract

Experimental and behavioral economics are well-established branches of economic science. This essay presents and discusses some results and behavioral regularities from these fields, which are of potential and actual importance for public policy. After a brief introduction to what experimental and behavioral economics are, some important behavioral regularities - presentation and framing effects, prosocial behavior, and reciprocity - are introduced, and it is reported how they interact with prominent trading institutions, taxation, and social and individual well-being. Throughout, some implications for public policy are discussed.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 66 (2010)
Issue (Month): 1 (March)
Pages: 65-95

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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201003)66:1_65:baeedi_2.0.tx_2-x

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Keywords: public economics; experimental economics; behavioral economics; public policy;

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Cited by:
  1. Doerrenberg, Philipp & Duncan, Denvil, 2014. "Tax Incidence in the Presence of Tax Evasion," IZA Discussion Papers 8137, Institute for the Study of Labor (IZA).

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