THE NUDGE THEORY AND ITS APPLICATION IN PUBLIC ECONOMIC POLICIES: A BEHAVIORAL ECONOMICS PERSPECTIVE

Alina Hagiu ()
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Alina Hagiu: National University of Science and Technology POLITEHNICA Bucharest, Pite?ti University Centre

Scientific Bulletin - Economic Sciences, 2025, vol. 24, issue 2, 17-26

Abstract: This article analyzes the nudge theory as a tool of behavioral economics applied in public economic policies. Going beyond the traditional assumption of perfectly rational agents, the study highlights how behavioral economics perspectives contribute to a more realistic understanding of individual decision-making in public policy contexts. The analysis focuses on the theoretical foundations of nudging, the main behavioral mechanisms used in public interventions, and documented applications in areas such as tax compliance, energy consumption, saving, and public service provision. The paper uses a qualitative approach, based on an analysis of the literature and institutional reports, assessing both the potential benefits and limitations of using nudging in public economic policies. We paid particular attention to the ethical implications regarding individual autonomy, the transparency of interventions, and democratic legitimacy, as well as the context-dependent nature of behavioral interventions. We also discuss the relevance of nudging within the European Union and explore the possibilities for its application in Romania, emphasizing the importance of institutional capacity and the level of public trust. Our results suggest that nudging can contribute to increasing the effectiveness of public economic policies when used as a complementary tool to traditional policies. However, it should not be considered a substitute for structural reforms and requires careful implementation, characterized by clear objectives, transparency, and continuous evaluation.

Keywords: behavioral economics; nudge theory; public economic policies; choice architecture; behavioral public policy (search for similar items in EconPapers)
JEL-codes: D90 D91 H11 H30 (search for similar items in EconPapers)
Date: 2025
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