Policy-makers around the world have also begun to take seriously the insights offered by behavioural economics and psychology. Instead of assuming that our citizens are the rational, interest-maximising agents we find in economics textbooks, behavioural economics starts with the more realistic assumption that people are affected by various cognitive complications. A growing body of research shows a number of situations in which individuals act in ways that run counter to the predictions of standard economics. Our rationality, self-control and self-interest are all bounded in ways that have important implications for the way governments design, implement and communicate policies.
Policy-makers are often faced with the pressure of making timely, high quality solutions in an environment where time and information are lacking. These two fields of research which have transformed economics are no longer just good-to-know; they are must-knows for public officials.
In partnership with the world’s leading authority on behavioural insights, Behavioural Insights Team (BIT), the Lee Kuan Yew School of Public Policy will offer a masterclass on Applying Behavioural Insights to Public Policy on 3 – 7 July 2017.