Behavioral and Experimental Economics Do Inform Public Policy

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Abstract

Experimental and behavioral economics are well-established branches of economic science. This essay presents and discusses some results and behavioral regularities from these fields, which are of potential and actual importance for public policy. After a brief introduction to what experimental and behavioral economics are, some important behavioral regularities - presentation and framing effects, prosocial behavior, and reciprocity - are introduced, and it is reported how they interact with prominent trading institutions, taxation, and social and individual well-being. Throughout, some implications for public policy are discussed.

Original languageEnglish
Pages (from-to)65-95
Number of pages31
JournalFinanzarchiv
Volume66
Issue number1
DOIs
Publication statusPublished - Mar 2010

Keywords

  • public economics
  • experimental economics
  • behavioral economics
  • public policy
  • LIABILITY-SIDE EQUIVALENCE
  • GIFT-EXCHANGE
  • PURCHASE QUANTITY
  • TAX
  • PREFERENCES
  • MARKETS
  • RECIPROCITY
  • DECISIONS
  • FAIRNESS
  • AVERSION

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