Psychological Economics and Policy

Catalog description

Economic analyses are usually rooted in assumptions of perfect rationality, perfect selfishness, and perfect self-control. Real human beings do not meet these assumptions. How do real people respond to economic policies? How can traditional analyses be adapted to incorporate social and cognitive psychology? In the past few decades, economists in the fields of Behavioral Economics and Experimental Economics have explored how to draw on the methods and insights of psychologists, model psychological behavior within markets, and test psychological hypotheses using data from the field. That work has become increasingly relevant in policy circles. This class surveys the theories, methods, and evidence of these fields and discusses their relevance for designing and implementing public programs. Prerequisite(s): A ECO 110, A ECO 111, and a 300-level statistics course such as R PAD 316 or A ECO 320.