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Time for behavioral political economy? An analysis of articles in behavioral economics

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  • Niclas Berggren

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Abstract

This study analyzes leading research in behavioral economics to see whether it contains advocacy of paternalism and whether it addresses the potential cognitive limitations and biases of the policymakers who are going to implement paternalist policies. The findings reveal that 20.7% of the studied articles in behavioral economics propose paternalist policy action and that 95.5% of these do not contain any analysis of the cognitive ability of policymakers. This suggests that behavioral political economy, in which the analytical tools of behavioral economics are applied to political decision-makers as well, would offer a useful extension of the research program. Such an extension could be related to the concept of robust political economy, according to which the case for paternalism should be subjected to “worst-case” assumptions, such as policymakers being less than fully rational. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Niclas Berggren, 2012. "Time for behavioral political economy? An analysis of articles in behavioral economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 199-221, September.
  • Handle: RePEc:kap:revaec:v:25:y:2012:i:3:p:199-221
    DOI: 10.1007/s11138-011-0159-z
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    References listed on IDEAS

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    Cited by:

    1. Bjørnskov, Christian, 2016. "Economic freedom and economic crises," European Journal of Political Economy, Elsevier, vol. 45(S), pages 11-23.
    2. Anders Gustafsson & Andreas Stephan & Alice Hallman & Nils Karlsson, 2016. "The “sugar rush” from innovation subsidies: a robust political economy perspective," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 729-756, November.
    3. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    4. Schnellenbach, Jan & Schubert, Christian, 2014. "Behavioral public choice: A survey," Freiburg Discussion Papers on Constitutional Economics 14/03, Walter Eucken Institut e.V..
    5. Jan Schnellenbach, 2016. "A Constitutional Economics Perspective on Soft Paternalism," Kyklos, Wiley Blackwell, vol. 69(1), pages 135-156, February.
    6. Shastitko, A., 2011. "Errors of I and II Types in Economic Exchanges with Third Party Enforcement," Journal of the New Economic Association, New Economic Association, issue 10, pages 125-148.
    7. Libman, Alexander, 2012. "Перераспределительные Конфликты И Факторы Культуры В Новой Политической Экономии
      [Redistributive Conflicts and Culture in the New Political Economy]
      ," MPRA Paper 48192, University Library of Munich, Germany.
    8. Eric Crampton & Matt Burgess & Brad Taylor, 2011. "The Cost of Cost Studies," Working Papers in Economics 11/29, University of Canterbury, Department of Economics and Finance.
    9. repec:beh:jbepv1:v:1:y:2017:i:1:p:73-78 is not listed on IDEAS

    More about this item

    Keywords

    Behavioral economics; Anomalies; Rationality; Homo economicus; Public choice; Robust political economy; JEL Classification D03; D78;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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