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"Small miracles"-- behavioral insights to improve development policy : World Development Report 2015

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  • Demeritt, Allison
  • Hoff, Karla

Abstract

One of the most fruitful advances in modern economics has been the introduction of psychological realism into the model of"economic man."The World Development Report 2015 organizes the evidence about how humans actually think and make decisions into a coherent framework useful for designing development policy. This paper elaborates on the three principles of human thinking that constitute the report's intellectual framework: Human thinking is dual process -- automatic as well as deliberative (thinking automatically); it is conditioned by social context and the salience of social identities (thinking socially); and it is shaped by mental models that are socially constructed (thinking with mental models). Behavioral insights create scope for policy interventions that produce"miracles"from the perspective of traditional economics.

Suggested Citation

  • Demeritt, Allison & Hoff, Karla, 2015. ""Small miracles"-- behavioral insights to improve development policy : World Development Report 2015," Policy Research Working Paper Series 7197, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7197
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    1. Hoff, Karla & Stiglitz, Joseph E., 2016. "Striving for balance in economics: Towards a theory of the social determination of behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 25-57.
    2. Julius Okello & Yuan Zhou & Ian Barker & Elmar Schulte-Geldermann, 2019. "Motivations and Mental Models Associated with Smallholder Farmers’ Adoption of Improved Agricultural Technology: Evidence from Use of Quality Seed Potato in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(2), pages 271-292, April.

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    Keywords

    Tertiary Education; Health Monitoring&Evaluation; Educational Sciences; Knowledge for Development; Primary Education;
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