PADM-GP 2139

Behavioral Economics and Policy Design

Fall 2024

Course Prerequisite

CORE-GP 1011: Statistics & CORE-GP 1018: Microeconomics (or equivalent)

Course Description

Standard economic theory assumes that individuals are fully rational decision-makers; however, that is often not the case in the real world. Behavioral economics uses findings from lab and field experiments to advance existing economic models by identifying ways in which individuals are systematically irrational. This course gives an overview of key insights from behavioral science and identifies ways in which these findings have been used to advance policies on education, health, energy, taxation, and more. Additionally, this course will review how government agencies and non-profit organizations have used behavioral insights to improve social policy.

Learning Assessment Table

Required Readings

•    Thaler, Richard H., and Cass R. Sunstein. Nudge: The Final Edition. Yale University Press, 2021.

•    Excerpts from the following books (provided via Brightspace):

o Kahneman, Daniel. Thinking, Fast and Slow. New York: Farrar, Straus and Giroux, 2011. Hereafter, referred as TFS.

o Mullainathan, Sendhil and Eldar. Shafir. Scarcity: Why Having Too Little   Means so Much. New York: Times Books, Henry Holt and Company, 2013.

o Ariely, Dan. Predictably Irrational: the Hidden Forces That Shape Our Decisions. New York: Harper Perennial, 2010.

Course Requirements

•    Semi-weekly assignments:

o Data visualization tweets (x4) – 20% (5% each)

o Writing assignments (x2) – 15% (7.5% each)

•    Class presentation: 10%

•    Participation: 10%

•    Policy Proposal: 15%

•    Final Exam: 30%

Semi-Weekly Assignments

Researchers working in public policy must frequently adapt their writing style. turning a technical, academic journal article into a policy brief for government officials, a New York Times article, a National Public Radio spot, or a tweet. One of the main goals of this class is to learn to digest academic research to make economics insights understandable to a policy audience. These semi-weekly assignments will give students practice in four types of policy writing:

•    Data visualization tweets

•    Opinion editorial

•    Policy brief

•    Policy proposals

Students will submit semi-weekly assignments via Brightspace. These will be graded as check ++, check+, check, check minus, no credit which corresponds to 100/95/85/75/0. Late assignments will lose 10 points per 24-hour period starting at the beginning of class in which the assignment is due. One make-up tweet is available to earn additional credit: this can replace a either a missed assignment or the assignment with the lowest grade.