PAM 5070

Behavioral Economics and Public Policy

Course Description

Course information provided by the Courses of Study 2015-2016.

Standard economic theory assumes that individuals are fully rational decision-makers; however, that is often not the case in the real world. Behavioral economics uses findings from lab and field experiments to advance existing economic models by identifying ways in which individuals are systematically irrational. This course gives an overview of key insights from behavioral science and identifies ways in which these findings have been used to advance policies on education, health, energy, taxation, and more. Additionally, this course will review how government agencies and non-profit organizations have used behavioral insights to improve social policy.

When Offered Spring.

• Identify assumptions in standard economic models that may not hold in real world settings and learn how economists test their validity.
• Review key findings in psychology that have important lessons for the field of economics.
• Learn how economists are able to apply insights from lab experiments to policy design.
• Interpret empirical results from research papers as they relate to policy.
• Identify areas of policy where taking behavioral insights into account could improve public policy in terms of implementation, efficiency, or redistribution.
• Assess the pros and cons of lab experiments, field experiments, and natural experiments.
• Practice presenting findings from top-tier journals in economics.

View Enrollment Information