The Relationship Between Behavioral Development Economics and Cognitive Distortions in Egypt

Abstract

Individuals seek to satisfy their needs by making decisions and doing acts to reach satisfaction and happiness. The behavioral development economics cares to understand the problems to reach satisfaction and happiness. If cognitive distortions influence behavioral development economics, there is a relationship between them. Therefore, the paper illustrates the nature of behavioral development economics and cognitive distortions status of both in Egypt, during the government implements an Economic Reform Programme (ERP). Moreover, the research seeks to find the relationship between them and presents scientific interpretation for some problems by using the result of the relationship. I use a literature approach to understand behavioral development economics and cognitive distortions and descriptive analysis of official data to know the status in Egypt. The paper investigates the effects of implementing ERP and the relationship on decision making, and the behavior of individuals in population growth, the consumption culture, consumer behavior, and production culture. This research finds the individuals had a problem in their knowledge base and socialization that led to cognitive distortions. It leads to influence negatively on the economic behavior of an individual, the economic performance of state and then on behavioral development economics.