Giacomo Ponzetto, 12 September 2017

What is the link between citizens, insitutions and globalisation? In this video, Giacomo Ponzetto underlines the relevance of psychology and availability of information. This video was recorded at the Barcelona Graduate School of Economics in November 2016.

Roger Farmer, 17 August 2017

How do psychology and economics interact? In this video, Roger Farmer discusses how bringing academics from these two fields could help avoid secular stagnation. This video was recorded in July 2017 at a macroeconomics conference organised by the Bank of England.

Michal Bauer, Christopher Blattman, Julie Chytilová, Joseph Henrich, Edward Miguel, Tamar Mitts, 02 July 2016

The past decade has seen rapid growth in an interdisciplinary body of research examining the legacy of war on social and political behaviour. This column presents a meta-analysis and synthesis of this research. Evidence from surveys and experiments from over 40 countries reveals a stylised fact: individual exposure to war-related violence tends to increase social cooperation, community participation, and pro-social behaviour. However, these changes are mainly directed towards people from the same community.

Stefano DellaVigna, Devin Pope, 29 May 2016

Behavioural economics has made many gains in recent years, but much uncertainty persists about the effectiveness of different behavioural interventions. This column uses data from a large-scale experiment to find the relative effectiveness of multiple treatments within one setting, and to gauge the accuracy of academic experts’ forecasts of responses. It finds monetary incentives are strong motivators, non-monetary psychological inducements are moderately effective, and results using behavioural factors are generally consistent with models of social and time preferences. Further, the interviewed experts correctly anticipate several results, including the effectiveness of psychological inducements, but fail to predict other important features.

Christian Helmers, Pramila Krishnan, Manasa Patnam, 25 January 2016

The growth of e-commerce has seen an enormous increase in the choice of products available online. With recent evidence from psychology suggesting that too much choice can impede decision making, this column examines whether consumers’ online choices are consistent with models of limited attention. High-frequency, transaction-level data from an online retail store reveal that consumers are influenced by recommendations. This suggests consumers do indeed have limited attention and simplify decision making by focusing on a subset of available products.

Maurizio Bovi, 23 July 2012

Is the crisis ‘decoupling’ the Greeks from Greece? Using EU survey data, this column shows that before the global crisis, Greeks’s assements of their own economic stance was in line with that of their country as a whole. But during the recent crisis years most Greeks thought they were doing better than average. This column explains this puzzle using insights from psychology.

Diane Coyle, 03 December 2011

Have economists been asleep at the wheel? This column reports from a conference on the psychology and economics of ‘scarce attention’. Among the ideas discussed is whether too much information can blind decision-making and whether this can explain why so many economists missed the warning signs of a crisis.

Jean Tirole, Roland Bénabou, 21 November 2011

Why do many oppose the selling of human organs if, as economists argue, this would increase supply? Economists see material incentives as key to changing behaviour – and are puzzled if incentives don’t work as expected. For psychologists, social norms explain such behaviour; legal scholars say law can shape society’s norms. CEPR DP8663 tries to reconcile these disparate insights with a unifying theory that could explain puzzles such the aversion to organ-selling as well as why so many people resist economists’ advice.

Roger Farmer, 18 August 2011

One explanation for the 2007-09 global crisis is that consumers, markets, and politicians were gripped by “irrational exuberance” that led them to believe the record-high house prices and stock prices were sustainable. This column proposes a new explanation based on rational behaviour and microeconomic theory. It argues that however high stock prices rise, there is always an equilibrium in which they can rise further.

Daniel Sgroi, 26 July 2010

Happiness economics typically looks at how macro-level variables such as economic growth affect happiness. This column turns such thinking on its head and asks whether a rise in happiness might change behaviour at the micro-level, looking specifically at productivity. Experiments suggest that happiness raises productivity by increase workers' effort. Economists may need to take the emotional state of economic agents seriously.

Antonio Spilimbergo, Paola Giuliano, 25 September 2009

Economic events can have long-lasting non-economic effects. This column shows how economic circumstances affect individuals’ life-long beliefs. Individuals growing up during recessions tend to believe that success in life depends more on luck than on effort and support more government redistribution, but they are less confident in public institutions. The current severe recession may be forming a generation that is more risk-averse and believes more in redistribution.

David Laibson, 02 January 2009

We need a combination of psychology and economics to understand people's savings and investment decisions, says David Laibson of Harvard University in an interview with Romesh Vaitilingam. We can then build institutions that help people do what they want to do. The interview was recorded at the Centre for Economic Performance in London, where Laibson was delivering the Lionel Robbins Memorial Lectures in November 2007.

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