Overview

Behavioral economics - a field based in collaborations among economists and psychologists - focuses on integrating a nuanced understanding of behavior into models of decision-making. Since the mid-20th century, this growing field has produced research in numerous domains and has influenced policymaking, research, and marketing. However, little has been done to assess these contributions and review evidence of their use in the policy arena. Behavioral Economics: Policy Impact and Future Directions examines the evidence for behavioral economics and its application in six public policy domains: health, retirement benefits, climate change, social safety net benefits, climate change, education, and criminal justice. The report concludes that the principles of behavioral economics are indispensable for the design of policy and recommends integrating behavioral specialists into policy development within government units. In addition, the report calls for strengthening research methodology and identifies research priorities for building on the accomplishments of the field to date. Table of Contents Front Matter Summary 1 Introduction Part I: Understanding Behavioral Economics 2 Development of Behavioral Economics 3 Foundational Behavioral and Economic Ideas 4 The Behavioral Economics Toolkit: Policy Levers and Intervention Strategies Part II: Evidence from Selected Policy Domains 5 Health 6 Retirement Benefits 7 Social Safety Net Benefits 8 Climate Change 9 Education 10 Criminal Justice System 11 Findings Across the Policy Domains Part III: Looking to the Future 12 Conducting and Disseminating Behavioral Economics Research 13 Implementing Behavioral Economics Approaches 14 Advancing the Field of Behavioral Economics Appendix: Biographical Sketches of Committee Members

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