CGD's weekly Global Prosperity Wonkcast, event videos, whiteboard talks, slides, and more.
Economists, development and otherwise, often assume that people given the right information will make informed decisions in their own best interest. Not! Just like the rest of us, the poor people targeted by development programs sometimes lack self-control and fail to take actions that would benefit them in the long run, even when they understand the potential benefits.
Behavioral economics seeks to complement traditional approaches to economics by incorporating insights from psychology and human behavior, and taking a behavioral approach allows us to understand a host of behaviors that are critical to the success of a variety of development policies. In this event, Sendhil Mullainathan and Saugato Datta will present a paper exploring how behavioral economics can inform development policy, from education to health to cash transfer programs. Drawing on the latest research in these and other areas, the authors will discuss how behavioral economics provides policymakers with innovative new ways of tackling many important issues in development.