Archivio per 15 agosto 2012

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MEMOS TO THE COUNCIL OF BEHAVIORAL-ECONOMICS ADVISORS – A Behavioral-Economics View of Poverty

See on Scoop.itBounded Rationality and Beyond

Standard theorizing about poverty falls into two camps. Social scientists regard the behaviors of the economically disadvantaged either as calculated adaptations to prevailing circumstances or as emanating from a unique “culture of poverty,” rife with deviant values. The first camp presumes that people are highly rational, that they hold coherent and justified beliefs and pursue their goals effectively, without mistakes, and with no need for help. The second camp attributes to the poor a variety of psychological and attitudinal short-fallings that render their views often misguided and their choices fallible, leaving them in need of paternalistic guidance.
We propose a third view. The behavioral patterns of the poor, we argue, may be neither perfectly calculating nor especially deviant. Rather, the poor may exhibit the same basic weaknesses and biases as do people from other walks of life, except that in poverty, with its
narrow margins for error, the same behaviors often manifest themselves in more pronounced
ways and can lead to worse outcomes. In what follows, we illustrate the kinds of insights that
might be gained from a behaviorally more realistic analysis of the economic conditions of the poor, and we propose that alternative policies for alleviating poverty be considered.

See on cbdr.cmu.edu




Time is real? I think not

agosto: 2012
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