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Applying behavioural economics to public policy in Canada

Author

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  • Robert French
  • Philip Oreopoulos

Abstract

Behavioural economics incorporates ideas from psychology, sociology and neuroscience to better predict how individuals make long-term decisions. Often the ideas adopted include present or inattention bias, both potentially leading to suboptimal outcomes. But these models also point to opportunities for effective, low-cost government policies that can have meaningful positive effects on people's long-term well-being. The last decade has been marked by a growing interest from governments the world over in using behavioural economics to inform policy decisions. This is true of Canada as well. In this paper we discuss the increasingly important role behavioural economics plays in Canadian public policy. We first contextualize government policies that have incorporated insights from behavioural economics by outlining a collection of models of intertemporal choice. We then present examples of public policy initiatives that are based upon findings in the field, placing particular emphasis on Canadian initiatives. We also document future opportunities, challenges and limitations.

Suggested Citation

  • Robert French & Philip Oreopoulos, 2017. "Applying behavioural economics to public policy in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 50(3), pages 599-635, August.
    • Handle: RePEc:cje:issued:v:50:y:2017:i:3:p:599-635
    DOI: 10.1111/caje.12272
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    Citations

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    Cited by:

    1. Colin Busby, 2018. "Not Just for Kids: How to Improve Adult Vaccination Uptake in Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 509, April.
    2. Katharine Meyer & Kelly Ochs Rosinger, 2019. "Applying Behavioral Insights to Improve Postsecondary Education Outcomes: A Review of Obama Administration Efforts and Next Steps Under the Trump Administration," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(2), pages 481-499, March.
    3. Sylvain Chareyron & David Gray & Yannick L’Horty, 2018. "Raising Take-Up of Social Assistance Benefits through a Simple Mailing: Evidence from a French Field Experiment," Revue d'économie politique, Dalloz, vol. 128(5), pages 777-805.
    4. Christopher L. Atkinson, 2025. "Theme-based Book Review: the Decline of Public Trust and the Problem of Relative Truths," Public Organization Review, Springer, vol. 25(1), pages 385-396, March.
    5. Halit Yanıkkaya & Zeynep Aktaş Koral & Sadettin Haluk Çitçi, 2023. "The Power of Financial Incentives versus the Power of Suggestion for Individual Pension: Are Financial Incentives or Automatic Enrollment Policies More Effective?," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    6. Colin Busby & Aaron Jacobs & Ramya Muthukumaran, 2017. "In Need of a Booster: How to Improve Childhood Vaccination Coverage in Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 477, April.
    7. Meredith Phillips & Sarah J. Reber, 2019. "Does Virtual Advising Increase College Enrollment? Evidence from a Random Assignment College Access Field Experiment," NBER Working Papers 26509, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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