Bringing Behavioral Economics to the Classroom
Author Background (Via Princeton.edu)
Alan Krueger has published widely on the economics of education, terrorism, labor demand, income distribution, social insurance, labor market regulation and environmental economics. Since 1987 he has held a joint appointment in the Economics Department and Woodrow Wilson School at Princeton University. He is the founding Director of the Princeton University Survey Research Center and a Research Associate of the National Bureau of Economic Research and of the Institute for the Study of Labor (IZA). He is the author of What Makes A Terrorist: Economics and the Roots of Terrorism and Education Matters: A Selection of Essays on Education, and co-author of Myth and Measurement: The New Economics of the Minimum Wage, and co-author Inequality in America: What Role for Human Capital Policies? He is a member of the Board of Directors of the Russell Sage Foundation, MacArthur Foundation, and the American Institutes for Research. He is a member of the editorial board of Science, and was editor of the Journal of Economic Perspectives from 1996 to 2002 and co-editor of the Journal of the European Economic Association from 2003-05. In 1994-95 he served as Chief Economist at the U.S. Department of Labor. He is currently a member of the Executive Committee of the International Economic Association and serves as chief economist for the National Council on Economic Education.
Powerpoint Excerpts on Behavioral Economics:
• Fastest growing field in economics
• Behavioral economics is concerned with the ways in which the actual decision-making process influences the decisions that are made in practice; combines psychology and economics
• Assumes bounded rationality – meaning that people have limited time and capacity to weigh all the relevant benefits and costs of a decision.
• Decision making is less than fully rational. People are prone to make predictable and avoidable mistakes.
• At the same time, decision making is systematic and amenable to scientific study.