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How behavioural economics does and can shape public policy

Published online by Cambridge University Press:  01 January 2023

Andrew Leigh
Andrew Leigh*
Affiliation:
Parliament House, Canberra, Australia
*
Andrew Leigh, House of Representatives, PO Box 6022, Canberra, ACT 2600, Email: Andrew.Leigh.MP@aph.gov.au
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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.

Keywords

D03Behavioural economicsframinghyperbolic discountingloss aversionrandomised trials
Type
Policy Article
Information
The Economic and Labour Relations Review , Volume 26 , Issue 2 , June 2015 , pp. 339 - 346
Copyright
Copyright © The Author(s) 2015

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