Open AccessNudging people out of poverty
Author(s) -
Dani Penders,
Dorian Bauschke,
Jan Guldemond
Publication year - 2019
Publication title -
the maastricht journal of liberal arts
Language(s) - English
Resource type - Journals
eISSN - 2542-7741
pISSN - 2542-7733
DOI - 10.26481/mjla.2019.v11.708
Subject(s) - poverty , irrationality , behavioural economics , transparency (behavior) , perspective (graphical) , behavioral economics , irrational number , economics , positive economics , public economics , field (mathematics) , political science , economic growth , microeconomics , rationality , law , computer science , mathematics , artificial intelligence , pure mathematics , geometry
New insights within the field of behavioural economics have led to the discovery of irrational behaviour of economic agents. The concept of ‘nudging’ is one approach to tackle this irrationality. Weillustrate that behavioural economics could be especially helpful for tackling poverty, as the lives of the poor make them very vulnerable to income shocks. Also, the poor constantly deplete their mentalresources. Moreover, we discuss ethical regulations for policies based on behavioural economics, centered around the idea of transparency. Finally, we present ideas scholars have put forward thatcould be used to tackle poverty by using behavioural economics and evaluate them from our own perspective.