The theory of ‘poor’ behavioural economics

The Poor Don’t Misbehave: Poverty and Behavioural Economics

Behavioural economics seeks to root economic decision-making in psychological theory, and in recent years has gained significant traction in the teaching and practice of economics. Evidence of this can be found in various forms – from more academic programs incorporating behavioural perspectives in teaching microeconomics, to a greater acceptance in academic journals (Samson, 2015). Since Richard Thaler and Cass Sunstein’s ‘Nudge’ (2008) was published, government policy in certain countries (such as the UK) have begun experimenting with applying insights from these fields to improving welfare. ….[READ]