2012

Time for Behavioral Political Economy? An Analysis of Articles in Behavioral Economics

Reprint No. 2012:27

Author(s): Niclas BerggrenYear: 2012 Title: Review of Austrian Economics Volume (No.): 25 (3) Pages: 199–221
Online article (restrictions may apply)


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.


Reference:
Berggren, Niclas (2012), "Time for Behavioral Political Economy? An Analysis of Articles in Behavioral Economics". Review of Austrian Economics 25(3), 199–221.

Niclas Berggren

Contact

Ph: +46 8 665 4520
niclas.berggren@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

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Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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