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How behavioural economics does and can shape public policy

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  • Andrew Leigh

Abstract

Behavioural economics research has pointed to the importance of market inefficiencies, framing, heuristics and hyperbolic discounting. Empirically, behavioural economics has been shown to predict patterns of consumer behaviour, exercise patterns and substance addiction. In this article, I discuss the ways in which our growing understanding of behavioural economics has shaped the development of public policies. I conclude with six pieces of advice for behavioural policymakers.

Suggested Citation

  • Andrew Leigh, 2015. "How behavioural economics does and can shape public policy," The Economic and Labour Relations Review, , vol. 26(2), pages 339-346, June.
    • Handle: RePEc:sae:ecolab:v:26:y:2015:i:2:p:339-346
    DOI: 10.1177/1035304615579346
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    References listed on IDEAS

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    6. Ellis Connolly, 2007. "The Effect of the Australian Superannuation Guarantee on Household Saving Behaviour," RBA Research Discussion Papers rdp2007-08, Reserve Bank of Australia.
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    Cited by:

    1. Yanko Yankov, 2020. "Behavioural Economic Tools as a Way to Increase Customers’ Response in the Banking Sector," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 311-327, June.

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    More about this item

    Keywords

    Behavioural economics; framing; hyperbolic discounting; loss aversion; randomised trials;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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