Behavioral Economics Perspectives on Public Policy Design for Poverty Alleviation and Social Welfare Enhancement
Keywords:
Behavioral Economics, Poverty Alleviation, Social Welfare, Public Policy, Nudging, Decision-Making, Cognitive BiasesAbstract
Traditional economic models often assume rational behavior among individuals, but behavioral economics has shown that cognitive biases, heuristics, and social preferences heavily influence decision-making. These insights have increasingly informed public policy, especially in domains like poverty alleviation and social welfare. This paper explores how behavioral economic principles can reshape policy interventions for enhanced outcomes. By integrating empirical literature, conceptual models, and current applications, this paper highlights how nudges, default options, and framing can significantly improve policy effectiveness. Case studies and comparative frameworks the impact of behavioral-informed interventions on welfare distribution and poverty reduction strategies.
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