AbstractIn many cases, behavioral economics has been advancing public policy. This is usually being done in one of two ways: First, behavioral sciences offer explanations for social phenomena that may not be explained by traditional economic analysis (diagnostic function). Second, they extend the decision maker’s “political toolbox” (therapeutic function). This potential has not yet been fully exploited for regional policy and politics. Thus, in the second part of this paper we outline specific suggestions how behaviorally informed regional policy might look like and how regional politics can benefit from the so-called “behavioral turn”. The two critical premises are open-mindedness and courage.
The Search for Public Policy: Regional Politics and Government Finances in Ecuador, 1830-1940