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Behavioral and Experimental Economics Do Inform Public Policy

Arno Riedl

FinanzArchiv: Public Finance Analysis, 2010, vol. 66, issue 1, 65-95

Abstract: Experimental and behavioral economics are well-established branches of economic science. This essay presents and discusses some results and behavioral regularities from these fields, which are of potential and actual importance for public policy. After a brief introduction to what experimental and behavioral economics are, some important behavioral regularities - presentation and framing effects, prosocial behavior, and reciprocity - are introduced, and it is reported how they interact with prominent trading institutions, taxation, and social and individual well-being. Throughout, some implications for public policy are discussed.

Keywords: public economics; experimental economics; behavioral economics; public policy (search for similar items in EconPapers)
JEL-codes: C90 D00 H00 (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1628/001522108X503389

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