A Triple Test for Behavioral Economics Models and Public Health Policy

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. HEG working paper 14-01 Abstract We propose a triple test to evaluate the usefulness of behavioral economics models for public health policy. Test 1 is whether the model provides reasonably new insights. Test 2 is on whether these have been properly applied to policy settings. Test 3 is whether they are corroborated by evidence. Where a test is not passed, this may point to directions for needed further research. We exemplify by considering the cases of social interactions models, self-control models and, in relation to health message framing, prospect theory; out of these, only a correctly applied prospect theory fully passes the tests at present. Terms of use: Documents in EconStor may

Social Interactions in Health Behaviors and Conditions

“…Understanding the mechanisms behind peer influence is key to the design of effective policies, as each mechanism has different implications in terms of how to promote healthy behaviors. Nakamura et al (2017) provide a good summary of the policy implications triggered by different sources of peer effects. If individuals learn from others about the potential health consequences of their behavior, the most appropriate policy would be to design educational policies that provide information about the consequences of others' health-related behavior.…”

“…Despite the relatively large evidence on the existence of strategic complementarities in health behaviors across a wide range of behaviors, populations, reference group, and estimation techniques, there is not yet a good understanding of the underlying mechanisms. The literature has proposed three channels for peer effects in health behaviors (Rice and Sutton 1998, Cutler and Glaeser 2010, Nakamura et al 2017: (i) social spillovers in preferences (direct social interactions or payoff interactions); (ii) social spillovers in beliefs (social learning); and (iii) social spillovers in constraints.…”