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Applying Behavioral Economics to the Public Sector

James Alm () and Carolyn Bourdeaux

Hacienda Pública Española / Review of Public Economics, 2013, vol. 206, issue 3, 91-134

Abstract: “Behavioral economics”, or the application of methods and evidence from other social sciences to economics, has increased greatly in significance in the last two decades. In this paper we discuss the basic elements of behavioral economics. We then assess several applications of behavioral economics to the analysis of the public sector, including specific applications to public economics and, importantly, to the closely related area of public budgeting. We conclude with suggestions on –and predictions of–topics in which future applications should prove useful.

Keywords: Behavioral economics; public economics; public budgeting (search for similar items in EconPapers)
JEL-codes: H0 H3 H61 H83 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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