Using behavioural insights to inform budget policy making: Eight Israeli case studies

Tal Shapsa Heiman and Danielle Israel

OECD Journal on Budgeting, 2022, vol. 22, issue 2

Abstract: This article summarises the Israeli experience with utilising behavioural insights in the work of budget officials and aims to assist budget officials in other OECD countries with integrating behavioural economics tools and evidence-based policy-making methods in their work. Behavioural economics has grown in recent years to become increasingly integrated in the work of public institutions, particularly those in the forefront of policy making. In the context of public budgeting, behavioural insights tools had initially focused on improving tax compliance. In this article we widen the scope of budget officials’ perspective, and responsibility, to develop behaviourally informed policies that are primarily citizen-focused. This approach harmonises and aligns the work of ministries of finance with public policy objectives more generally, and provides actionable “know how” based on the experience of the budget department in the Israeli Ministry of Finance.

Keywords: Behavioural economics; public budgeting; behaviourally informed policy (search for similar items in EconPapers)
JEL-codes: H3 H30 H6 H60 H61 (search for similar items in EconPapers)
Date: 2022
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