Updated on 5 July, 2019
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- Economic Survey says the govt should use insights into behavioural economics from Nobel Prize winner Richard Thaler to meet policy goals
- The Economic Survey 2018-19 has favoured a detailed application of 'behavioural economics' as an instrument of change in India where social and religious norms play a dominant role in influencing behaviour.
- That relies on the assumption that the decisions are made by just the actual people who detract from the impractical robots that are impractical theorised in classical economics. "Drawing about the psychology of their human behaviour, behavioural economics provides insights into'nudge' people towards the desired behaviour," States the economic Survey
- By analysing the successful behavioural change that is affected by the Swachh Bharat Mission and also the Beti Bachao Beti Padhao campaigns, the Survey incorporates their learning and the lays out frameworks for integrating behavioural economics into the policymaking in the various contexts.
- Additionally, the survey layout an ambitious schedule for its behavioural change by implementing the fundamentals of the behavioural economics into the many issues such as the gender equality, a healthful and a delightful India, savings, taxation compliance and the credit score.
- The behavioural insights could be leveraged to change the tax culture from among tax evasion into taxation compliance.
- This Could then provide the Required revenues for investment in the hard infrastructure of roads, railways, etc. and the soft infrastructure of skills as well as the Schooling