Farnam Street helps you make better decisions, innovate, and avoid stupidity.

With over 400,000 monthly readers and more than 93,000 subscribers to our popular weekly digest, we've become an online intellectual hub.

A Behavioral Economics Approach to Development Policy

Behavioral economics seeks to complement traditional approaches to economics by incorporating insights from psychology and human behavior, and taking a behavioral approach allows us to understand a host of behaviors that are critical to the success of a variety of development policies.

In this video, Sendhil Mullainathan and Saugato Datta present a paper exploring how behavioral economics can inform development policy, from education to health to cash transfer programs.