Policy and Choice: Public Finance through the Lens of Behavioral Economics
"Policy and Choiceis a must-read for students of public finance. If you want to learn how the emerging field of behavioral economics can help lead to better policy, there is nothing better." —N. Gregory Mankiw, Harvard University, former chairman of the President's Council of Economic Advisers, and author ofPrinciples of Economics"This fantastic volume will become the standard reference for those interested in understanding the impact of behavioral economics on government tax and spending policies. The authors take a stream of research which had highlighted particular 'nudges' and turn it into a comprehensive framework for thinking about policy in a more realistic world where psychology is incorporated into economic decisionmaking. This excellent book will be widely used and cited." —Jonathan Gruber, Massachusetts Institute of Technology, former Treasury Department official, and author ofPublic Finance and Public Policy"The proper design of public policy has never been more important, and it will be shaped by the emerging insights of behavioral economics. Congdon, Kling, and Mullainathan have produced a clear and accessible road map to the key issues." —Douglas Holtz-Eakin, American Action Forum president and former director of the Congressional Budget Office"For decades, economists have been advising governments with an impoverished toolkit because they based their advice on a fully rational depiction of human behavior. This book shows the world how much more powerful economic science can be when it is enriched with important insights from psychology. If you are a public finance scholar or practitioner you need to read this book right now; don't procrastinate!" —Richard H. Thaler, University of Chicago, coauthor ofNudge"Congdon, Kling, and Mullainathan have provided a lucid and crisply written primer on how to apply insights from psychology to important issues that arise in public sector economics. This volume will be of interest not only to students in public finance courses, but also to researchers who want to find out what behavioral economics is all about."--Harvey S. Rosen, Princeton University, former chairman of the President's Council of Economic Advisers, and author of Public Finance