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“Small Miracles” — Behavioral Insights to Improve Development Policy: The World Development Report 2015

In: Contemporary Issues in Development Economics

Author

Listed:
  • Allison Demeritt

    (University of Washington)

  • Karla Hoff

    (World Bank)

Abstract

Rational actor models dominate much modern economic thinking. But rational choice theory cannot explain the striking effects of the policies discussed in the World Bank’s latest World Development Report (World Bank Group 2015). In his review of the report in The New York Times, David Brooks celebrates the behavioral approach to development because it creates opportunities for policy interventions that produce “small miracles” from the perspective of traditional economics.

Suggested Citation

  • Allison Demeritt & Karla Hoff, 2016. "“Small Miracles” — Behavioral Insights to Improve Development Policy: The World Development Report 2015," International Economic Association Series, in: Timothy Besley (ed.), Contemporary Issues in Development Economics, chapter 3, pages 19-43, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-52974-9_3
    DOI: 10.1057/9781137529749_3
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    Cited by:

    1. Hoff, Karla & Stiglitz, Joseph E., 2016. "Striving for balance in economics: Towards a theory of the social determination of behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 25-57.
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    3. Karla Hoff, 2016. "Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 6, pages 172-200, Palgrave Macmillan.

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