The limits of nudging

THE behavioural revolution is in full swing, it seems. On Thursday the Behavioural Insights Team (BIT), based in London and previously known as the 'Nudge Unit', published a summary of its findings over the past two years. Five years after it started, the buzz surrounding the unit has not faded. So far the BIT has trialled over 100 policy tweaks around the world, and boasts an impressive array of results. But for all the excitement, there is still a long way to go. 

 

The report reveals that, embarassingly slowly, governments around the world are cottoning on to two ideas. First, they need to take into account the behaviour of the people they affect. Second, in the words of Richard Thaler, one of the top dogs in behavioural economics, "we can’t do evidence-based policy without evidence". 

 

In the field of tax collection, the BIT has helped boost tax revenues for cash-strapped governments. For instance, in...Continue reading

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