In a thought-provoking op-ed in the FT recently, Tim Harford (of ‘Undercover Economist’ fame) asks whether the nexus between behavioural economics and public policy is indeed a feasible one and whether this new ‘sexy’ stream of economics is living up to the hype. He asks,
“Is behavioural economics doomed to reflect the limitations of its intellectual parents, psychology and economics? Or can it build on their strengths and offer a powerful set of tools for policy makers and academics alike?”
Read Harford’s full piece here – http://www.ft.com/cms/s/2/9d7d31a4-aea8-11e3-aaa6-00144feab7de.html#axzz2yByZla6k
I would love to run a randomized control trial (RCT) on tax payer compliance to see if some of the tools used by, for instance, the award-winning Behavioural Insights Team of the UK government would work in Sri Lanka. Could rephrasing/rewriting the ‘red notice’ letter by the Inland Revenue Department increase tax compliance?