Behavioral economics is a flourishing research program in recent economic analysis. Generally speaking, behavioral economics studies the effects of cognitive and emotional factors on individual economic behavior, and the aggregate consequences of this behavior on market equilibria and prices. Insights provided by behavioral economics have proved useful to shape public policies in fields such as saving, taxation, social security and health.
In the first part of the course, Moscati introduces the main concepts and findings of behavioral economics. In the second part, Figari discusses how these concepts and findings have been applied to public policies.