Application of the Conclusions of the Behavioral Economy to the Behavior of Civil Servants: Methodological Aspects

Применение выводов поведенческой экономики к поведению государственных служащих: методологические аспекты

Shastitko, Anastasia (Шаститко, Анастасия) ()
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Shastitko, Anastasia (Шаститко, Анастасия): Russian Presidential Academy of National Economy and Public Administration (RANEPA)

Working Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: Behavioral economics methods can shed light on the causes of some existing problems in the public administration (principal agent problems), as well as improve the effectiveness of incentive mechanisms for civil servants. One of the reasons for government intervention in the natural functioning of markets is such a market failure as the limited rationality of economic agents. However, employees of government departments are also subject to cognitive errors. In this paper, we consider the main cognitive errors that can be inherent in civil servants; an analysis is made of how they affect the policy pursued by the relevant agency, as well as the necessary conditions for improving the rationality of decisions made by such departments.

Keywords: Behavioral Economics; Limited Rationality; Public Administration; Problem of the Principal Agent; Cognitive Errors (search for similar items in EconPapers)
Pages: 23 pages
Date: 2018-03
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