PAM 5130 - Behavioral Economics and Public Policy

Fall, Spring. 3 credits. Letter grades only.

Prerequisite: either PAM 3100, CRP 5450, or a course in basic econometrics and either PAM 2000 or ECON 3030 or permission of instructor. Enrollment limited to: graduate students. Co-meets with ECON 3670/PAM 3130.

B. Tripp.

Standard economic theory assumes that individuals are rational decision-makers; however, that is often not the case in the real world. Behavioral economics uses findings from psychology to determine ways in which individuals are systematically irrational to improve upon existing models. The first part of this course reviews these theories, while the second part of the course focuses on how these findings have been used to design better education, health, and tax policies as well as many others.

Outcome 1: Apply key theories from the field of behavioral economics.

Outcome 2: Apply economic insights from lab and field experiments to policy design.

Outcome 3: Interpret empirical results from research papers as they relate to policy.

Outcome 4: Identify assumptions in standard economic models that may not hold in real world settings and interpret empirical tests of their validity.

Outcome 5: Identify areas of policy where taking behavioral insights into account could improve public policy in terms of implementation, efficiency, or redistribution.