On behavioral human development policies: how behavioral public policy adds to human development

Abstract

The influential Capability Approach, which is the basis of the Human Development paradigm, focuses on people and their quality of life to assess development. In doing so, it provides a rich account of human beings and their agency. This project has also tackled the issue of rationality but without offering an explanation for the making of inferior choices and non-reflective behavior. Although the literature has proposed behavioral economics to complement the capabilitarian framework at an abstract level, the policy implications of this combination require further study. This article fills that void by moving from theory to practice. Policy relevant implications are drawn in terms of mandates, nudges, and boosts. While all can contribute to human development in different ways and to different extents, boosts resonate with the Capability Approach the most.

Keywords

• agency
• freedom
• behavioral economics
• human development
• rationality