Microeconomics and Competitiveness

How Can Crowdsourcing Help Latin America in the Digital Age?

Latin America increasingly uses crowdsourcing to solve social problems in the digital age

Suppose you are a government facing various social crises. Traditionally, you might send out teams of government researchers, create government-led commissions, and hire consultancies. You might host public hearings.  But you wouldn’t bring your problems to the internet “crowd.” Over the last 10-15 years, however, governments and non-governmental organizations in both the developed and developing […]

New Research Opportunities at the IDB for Behavioral Economists

Applications open at the IDB for Behavioral Economists

The IDB invites researchers with a keen intellectual interest in behavioral interventions to apply for visiting positions with its recently established IDB Working Group on Behavioral Economics. As the leading multilateral institution for Latin America and the Caribbean, the IDB is looking to build on its experience helping governments use behavioral economics tools to improve […]

Nudging Latin Americans to Healthier, More Prosperous Lives

Nudging is instrumental for the IDB in improving health and well-being for Latin Americans

The year 2017 may be the year behavioral economics found its place in the sun. Fifteen years after behavioral economics pioneer Daniel Kahneman won his Nobel Prize, its principles have been transformed into key policy tools in government, business, and development agencies. The 2017 Nobel Prize to Richard Thaler, one of its principle theoreticians and […]

Behavioral Economics and the Messaging That Works

Behavioral economics shows that the way a message is received can make all the difference

“Nothing can be said to be certain, except death and taxes,” said the United States’ Benjamin Franklin. And few things are less pleasurably anticipated. But at least when it comes to taxes, the avoidance can make running a government especially hard. Behavioral economics, with its psychological insights into how information can be used to change citizens’ […]

How Nobel Ideas Inspired the IDB

The ideas of Nobel Laureate Richard Thaler inspire IDB interventions in Latin America

Richard Thaler, the University of Chicago professor who fused psychological insights and economics to reveal how biases affect decision-making, was awarded Oct. 8 the 2017 Nobel Prize in economics. The award, which recognizes Thaler’s work in overturning assumptions about economic behavior as rational and demonstrating how people could be “nudged” to make better choices, brings […]

A Simple Nudge is a Better Nudge

What are the best ways to get people to change their behavior for their own, and society’s, good? Seeking to avoid coercion, policymakers increasingly turn to pricing strategies, like “sin taxes” on alcohol or cigarettes. Or they resort to techniques from behavioral economics like “nudges,” which employ peer pressure, moral appeals and suggestive images—such as […]

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