Abstract

ABSTRACT This paper aims to provide an interpretation of why behavioral economics has come into the complex field of development economics that draws on insights from methodology of economics. We engage in an extensive survey of the literature that focuses on the actual practice of “behavioral development economics and behavioral economics view of poverty” that emerged in the early years of the 21st century in order to identify and discuss some directions and implications that this movement might carry for economics science and art of Economics.

Highlights

  • Behavioral Economics and its empirical applications have gained its momentum at the end of the 20th century (Angner and Loewenstein, 2012; Heukelom, 2013)

  • Our point of departure in this paper is the view that methodology of economics help understand why and perhaps how researchers on development and poverty accommodate the behavioral approach and what implications all this might carry (Hands, 2012). It aims to provide an interpretation of why behavioral economics has come into the complex field of development economics informed by economic methodology

  • We embark on an extensive survey of the literature that focuses on the actual practice of “behavioral development economics and behavioral economics view of poverty” that emerged in the early years of the 21st century in order to identify and discuss some directions and implications that this movement might carry for economics science and policy

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Summary

Roberta Muramatsu Flavia Avila*

Resumo: Este artigo busca oferecer uma interpretação sobre por que insights da economia comportamental foram incorporados à agenda de pesquisa sobre o desenvolvimento econômico inspirada pelas lentes da metodologia da economia. Embarca-se em uma revisão extensa da literatura que se concentra na prática efetiva “da análise comportamental do desenvolvimento econômico e visão da economia comportamental da pobreza”. Tal agenda surgiu nos primeiros anos do século XXI para identificar e discutir algumas direções e implicações que esse movimento pode trazer para a ciência e arte da Economia. Palavras- chave: Economia comportamental; desenvolvimento; experimentos de campo; metodologia; política. Abstract: This paper aims to provide an interpretation of why behavioral economics has come into the complex field of development economics that draws on insights from methodology of economics.

Introduction
Behavioral economics views of poverty and development
High transaction costs and little credibility or reputation
Making sense of behavioral economic applications to development
Early methodological differences between Friedman and behavioral economists
Experiments to improve economic predictions and explanations
Field experiments in development economics
Understanding the behavioral foundations of economic development
Institutional factors also explain the behavioral turn
Schooling decision behaviors in developing countries
Behavioral field experiments highlight improvements in microfinance
Critical implications
Development policy or programs as nudging and paternalistic interventions
Findings
Concluding Remarks

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