European nations, stunned by Russia's aggression, have mostly rallied in support of Ukraine, sending weapons and welcoming millions of refugees. But European citizens are paying dearly for it. Apart from the costs in direct assistance, the energy conflict with Russia had sent prices of gas soaring to eight times their 10-year average by the end of September and helped push … [Read more...] about Behavioral Economics and the Energy Crisis in Europe
Latin America and the Caribbean has faced several consecutive crises, from COVID to the Russian invasion of Ukraine, that have weakened countries' ability to provide their citizens goods and services and underscored the need to increase rates. Budgets are tight and capital spending meager, and the region can’t afford rates of evasion for personal and corporate income taxes … [Read more...] about Nudging to Get Citizens to Pay Their Taxes and Improve the Delivery of Public Goods
For democracy to function and economies prosper, people need to believe that their fellow citizens are trustworthy: that they are well intentioned, will honor commitments and will not take advantage of them. When people have little to no information about others, it is difficult to believe that. The fact that Latin America and the Caribbean has the lowest rates of trust in … [Read more...] about Employing Information to Boost Citizen Trust and Welfare
How do people make decisions? How does behavior affect public policies? And can policymakers nudge people into doing things that will benefit them and society at large? Many issues related to the success of public policies come down to a, sometimes understudied, factor: human behavior. In our Behavioral Economics for Better Public Policies course, we focus on that fundamental … [Read more...] about The Free Online Behavioral Economics Course Is Going Strong. Have You Taken It?
The government says it is progressing in its fight against the COVID-19 pandemic, but firms distrust the news, delaying investments and hiring and slowing economic recovery. A firm manager distrusts her own employees and refuses to delegate responsibilities, complicating efforts to invest, innovate and move into new markets. Citizens distrust firms and demand excessive … [Read more...] about When the Lack of Trust Cripples Productivity and Growth