Behavioral Economics for Public Policy

3 credits · Undergraduate

This course introduces a range of economic phenomena that cannot be explained by standard, fully rational economic models, and explores implications for public policy. Why do we vote for social security despite the fact that it reduces our freedom to choose how we spend our money? What would happen to job seeking behavior if we cut off unemployment benefits in multiple steps? Why do fines work better than bonuses (except when they don't)? What kinds of policies should the Consumer Financial Protection Bureau implement? Behavioral Economics provides answers to these questions that standard economics does not.