Jan 3, 2013
Economists, development and otherwise, often assume that people given the right information will make informed decisions in their own best interest. Not! Just like the rest of us, the poor people targeted by development programs sometimes lack self-control and fail to take actions that would benefit them in the long run, even when they understand the potential benefits.
My guest on this week’s Wonckast, Saugatto Datta, draws on findings from his recent policy paper, co-authored with CGD visiting fellow Sendhil Mullainathan, Behavioral Design: A New Approach to Development Policy, to show how program designers and policy makers can become more effective in helping poor people by systematically taking behavioral economics into account.
To listen to the Wonkcast or read a full show summary, visit www.cgdev.org/wonkcast