The Behavioral Welfare Paradox: Practical, Ethical and Welfare Implications of Nudging. (28th April 2017)

• Record Type: Journal Article
• Authors: Just, David R.
• Is Part Of: Agricultural and resource economics review. Volume 46:Number 1(2017)
• Page Start: 1
• Page End: 20
• Publication Date: 2017-04-28
• Subjects: Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2017.2
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract : With decades of behavioral economic research now achieving prominence, the last decade has seen the advent of behavioral policymaking. These efforts have been widely seen as successful in that they achieve policy goals without inducing backlash on the part of policy targets. Behavioral policies create a unique challenge to welfare analysis that has not been sufficiently addressed in the literature. The existence of behavioral effects creates a paradox, at once justifying the use of paternalistic policies and undermining the empirical foundations of welfare analysis. In this paper I explore the behavioral welfare paradox and its implications for economic policy prescription.