Feb 6, 2012
Statism and Behavioral Economics
A while back I wrote a couple of posts about the statist bias of behavioral economics. While its central assumption was that decisionmakers often did not behave rationally, it almost never applied its insights to the government agencies it sought to have regulate the economy. Now, via Tyler Cowen, is the report of a paper on the subject which states:
The findings [of the paper] reveal that 20.7% of the studied articles in behavioral economics propose paternalist policy action and that 95.5% of these do not contain any analysis of the cognitive ability of policymakers.
Not surprising, but it is good to have my impressionistic observation confirmed by a study.