Behavioural Economics and Policy Design

Examples from Singapore

Analysts of government have frequently noted how Singapore's policies are grounded in rigorous economics thinking. Policies are designed to be economically efficient even if they are not always popular. This pioneering book takes a different approach. It aims to demonstrate how successful policies in Singapore have integrated conventional economic principles with insights from the emerging field of behavioural economics even before the latter became popular. Using examples from various policy domains, it shows how good policy design often requires a synthesis of insights from economics and psychology. Policies should not only be compatible with economic incentives, but should also be sensitive to the cognitive abilities, limitations and biases of citizens. Written by policy practitioners in the Singapore government, this book is an important introduction to how behavioural economics and the findings from cognitive psychology can be intelligently applied to the design of public policies. As one of the few books written on the subject, it promises to stimulate wider interest in the subject among researchers, policymakers and anyone interested in the design of effective public policies.

Contents:

• Cognition, Choice and Policy Design (Donald LOW)
• Key Ideas in Behavioural Economics — and What They Mean for Policy Design (KOH Tsin Yen)
• Incentives, Norms and Public Policy (Charmaine TAN and Donald LOW)
• A Behavioural Perspective to Managing Traffic Congestion in Singapore (LEONG Wai Yan and LEW Yii Der)
• Can Psychology Save the Planet and Improve our Environment (Philip ONG)
• Promoting Competition in Electricity Retail: Insights from Behavioural Economics (Eugene TOH and Vivienne LOW)
• Discretionary Transfers: Providing Fiscal Support in a Behaviourally Compatible Way (Pamela QIU and TAN Li San)
• Using Behavioural Insights to Improve Individual Health Decisions (Lavinia LOW and YEE Yiling)
• A Behavioural View on Designing Singapore's National Annuity Scheme (Donald LOW)
• Behavioural Economics, Policy Analysis, and the Design of Regulatory Reform (Jack KNETSCH)

Readership: Policymakers, researchers and general readers with interest in policymaking in Singapore — in relation to behavioural economic theories.
Key Features:

• This is the first compiled volume that discusses the applications of behavioural economics in public policy. Using examples from Singapore, it offers a unique, practitioner-based view of how policies can be improved by being sensitive to people's psychology
• It provides a penetrating and interesting inside look at the design of public policies in the Singapore government, which is well-regarded for its pragmatic, rationalist approach to governance. Written by practitioners for practitioners, this book illustrates how psychological considerations that go well beyond standard economics assumptions have shaped policy design in Singapore — often producing superior public and citizen outcomes
• It draws on the diverse perspectives of policy makers and academics from different fields, rather than solely from a single author/researcher. This gives room for comparative analysis, and provides a vivid demonstration of how the ideas of behavioural economics can be applied in a variety of policy contexts