- International Journal of Public Finance
- Vol: 5 Issue: 1
- Behavioral Economics and Government Purchases – Some Insights into the Fiscal Psychology of Public E...
Behavioral Economics and Government Purchases – Some Insights into the Fiscal Psychology of Public Expenditure
Authors : Thomas Döring, Ruven Dominik Oehmke
Pages : 56-80
Doi:10.30927/ijpf.713894
View : 13 | Download : 4
Publication Date : 2020-07-24
Article Type : Review
Abstract :As a challenge to the neoclassical approach to human decision-making, behavioral economics have obtained increasing acceptance either in the field of public finance for some time. How-ever, so far the fundamental results of behavioral economics on cognitive heuristics, illusions and biases with respect to human information processes, judgements and choices were pri-marily applied to the analysis of taxation and public debt. In contrast, comparable examinations of public expenditure are not very common up to now. For this reason, the paper gives a review of the existing behavioral economic research on public spending and governmental expenditure policy.Keywords : Behavioral Economics, Public Expenditure, Fiscal Illusion, Fiscal Psychology