Behavioural economics is increasingly being used to inform and develop policy interventions. Perhaps the most visible use of behavioural economics has been the development of ‘nudge’ policies, which stress that changing the way choices are presented, or changing the environment in which decisions are made, can substantially alter behaviour. However, the lessons from behavioural economics run deeper than nudging alone and have enormous implications for more traditional policy levers as well. Recent work by IFS researchers Andrew Leicester and Peter Levell highlights this point through a detailed examination of the behavioural insights for tax and benefit policy.
Andrew and Peter will present this research to more than 100 civil servants from the HMRC and HM Treasury today.