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Behavioral Economics and Institutional Innovation

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Author Info
Robert J. Shiller () (Cowles Foundation, Yale University)

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Abstract

Behavioral economics has played a fundamental role historically in innovation in economic institutions, even long before behavioral economics was recognized as a discipline. Examples from history, notably that of the invention of workers’ compensation, illustrate this point. Though scholarly discussion develops over decades, actual innovation tends to occur episodically, particularly at times of economic crisis. Fortunately, some of the major professional societies, the Verein fur Sozialpolitik, the American Economic Association and their successors, have managed to keep a broad discourse going, involving a variety of research methods including some that may be described today as behavioral economics, thereby maintaining an environment friendly to institutional innovation. Further, the broad expansion of behavioral economics that is going on today can be expected to yield even more such important institutional innovations.

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File URL: http://cowles.econ.yale.edu/P/cd/d14b/d1499.pdf
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Publisher Info
Paper provided by Cowles Foundation, Yale University in its series Cowles Foundation Discussion Papers with number 1499.

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Length: 24 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:cwl:cwldpp:1499

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Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA
Phone: (203) 432-3702
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Web page: http://cowles.econ.yale.edu/
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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Related research
Keywords: Economic innovation Invention Psychological economics Institutional economics Social insurance Workers’ compensation American Economic Association Germany Verein fur Sozialpolitik

Find related papers by JEL classification:
B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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  1. Daniel B. Klein, 2006. "Sense and Sensibilities: Myrdal’s Plea for Self-Disclosure and Some Disclosures on AEA Members," Econ Journal Watch, Atlas Economic Research Foundation, vol. 3(2), pages 180-205, May. [Downloadable!]
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This page was last updated on 2008-7-18.


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