SELA and IDB launch II Workshop on Public Policy Instruments based on Behavioural Economics

The Latin American and Caribbean Economic System (SELA) and the Inter-American Development Bank (IDB) launched on Wednesday the II Workshop on Public Policy Instruments based on Behavioural Economics with the purpose of learning about the conceptual foundations, studying the design, introduction and implementation of behavioural economics in public policies in the region.

Economics today uses highly sophisticated statistical techniques and increasingly has access to larger and more diverse databases that allow for the development of laboratory and field experiments. In this regard, the inclusion of psychological factors such as framing, self-control and fairness in economic analysis will help strengthen traditional models that will lead to a better understanding of economic phenomena and improve the development of efficient public policies.

"Behavioural science has proven to be very useful in the design of clear and effective public policies, since it incorporates to traditional approaches the notion that we are irrational agents by considering the existing cognitive limitations in the decision-making process," said SELA's Coordinator for Economic Recovery, José Miguel Rovira, during the opening of the workshop.

Carlos Scartascini, who is Leader of the Behavioural Economics Group and Head of the Development Research Group at the Inter-American Development Bank (IDB), stressed the need to learn about the conceptual foundations of behavioural economics and show successful cases of its application.

Nicolás Ajzenman, Assistant Professor at the Sao Paulo School of Economics-FGV and affiliated researcher at IZA, was in charge of the first theoretical session on the introduction to Behavioural Economics, held on Wednesday. The practical sessions on 11 and 16 August will be under the guidance of Deborah Martínez, Senior Research Associate in Behavioural Economics at the IDB Research Department; Lina Diaz, Behavioural Economics Consultant at the Andean Group Countries Department (CAN/IDB); and Indhira Ramirez, Behavioural Economics Research Fellow at the IDB Research Department.