Applying behavioral economics to politics

This is an interesting review paper on Behavioral Political Economy by Jan Schnellenbach and Christian Schubert.

One of the points they make is that researchers have not fully integrated the insights of behavioral economics into analyses of how politicians and bureaucrats behave.


A quote

The case of Libertarian Paternalism therefore illustrates the difference between BPE [behavioral political economy] and behavioral welfare economics, which is very akin to the old conflict between Political Economy and traditional welfare economics. Behavioral welfare economists are currently at risk of repeating the mistake of neglecting the real-world political process with its many intricacies. Under these conditions, policy advice addressed to an imaginary social planner may not only be useless, but even dangerous, if it helps to promote policies that have unintended, negative consequences under real-world conditions.