Institutional and Behavioral Economics: Institutions and Policy Affecting Behavioral Economic Choices

Sufficient Reason and Trade Policy by David Schweikardt, Michigan State University

Thu, 31 Jul 2008 17:20:28 GMT

Surveys have shown significant differences between the opinions of economists and the general public on policy issues, particularly regarding trade policy issues. Economists often respond to such results with calls for improved economic education of the public without considering that values other than efficiency might be involved in such policy decisions and, therefore, affecting public attitudes on such policy issues. This presentation will examine trade policy issues within the framework of volitional decision-making proposed by Bromley and consider the possible causes and implications of such differences.

Attachments:
PDF of PowerPoint

Sufficient Reason and Natural Resource Policy by Robert Sheeder and Gary Lynne, University of Nebraska-Lincoln

Thu, 31 Jul 2008 17:41:41 GMT

The setting is Tuttle Creek Lake, a U.S. Army Corps of Engineers reservoir. The problem is, Kansas City is drawing its water from this silt and chemical laden Lake. The overall challenge is how to facilitate a resolution over the “irritation,” as Bromley refers to the impetus for policy change, that is building between upstream farmers and these downstream water users. Using dual-motive, metaeconomic theory integrated with the Bromley framework, we examine the farmer’s tendencies to take action in the empathy-sympathy domain. This tendency is essential to forming a shared other-interest in a new future for the Lake, as the Bromley framework suggests is the focus of policy. This shared vision tempers the self-interested pursuit of more profit from using less than sustainable farming practices and of more public water, as the irritation and conflict dissipates through changing policy and institutions.

Attachments:
PDF of Natural Resource Policy PowerPoint

Sufficient Reason and Farm Policy by Thomas Dobbs, South Dakota State University and Kellogg Foundation

Thu, 31 Jul 2008 17:49:19 GMT

Going into 2007, proposals for major reforms in U.S. farm policy were coming from groups representing two very different visions for American agriculture: (1) the global competitiveness vision; and (2) the sustainable agriculture vision. However, on one major aspect of reform, there appeared to be a convergence of views. The 'commodity program' subsidies needed to be drastically curtailed, altered, or gradually eliminated. It appeared that a new "settled belief" was emerging. However, at this writing, it appears that the commodity program subsidies will remain in full force when the Farm Bill legislation is finally passed. What does Bromley's framework tell us about the process of institutional change in Federal farm and food policy, and what might it take for true reform finally to come about? That question will frame the discussion in this case presentation.

Attachments:
PDF of Food Policy PowerPoint

Bromley (2006) "Sufficient Reason..." Overview by Paul Thompson, Michigan State University

Thu, 31 Jul 2008 17:55:53 GMT

This book provides an insightful and innovative framework for considering and understanding institutional and policy change. For other reviews of the book, see: Lynne, G. D. Review of Bromley, D.W. “Sufficient Reason: Volitional Pragmatism and the Meaning of Economic Institutions.” Princeton, NJ: Princeton University Press, 2006, 244 pp. in American J. of Agri. Econ. 89,4 (November 2007): 1120-1122. Stephenson, K. Review of Sufficient Reason: Volitional Pragmatism and the Meaning of Economic Institutions, by Daniel W. Bromley. Princeton: Princeton University Press. 2006. Hardcover: ISBN-13: 978 0 691 12419 3, $35. 256 pages, in Journal of Economic Issues 41, 3 (2007): 879-881.

Attachments:
PDF of Sufficient Reason Overview

Comments on Sufficient Reason Presentations by Laura McCann, University of Missouri

Thu, 31 Jul 2008 17:59:34 GMT

Commentary by Laura McCann, University of Missouri.

Questions and Answers About Sufficient Reason

Thu, 31 Jul 2008 18:14:29 GMT

Comments and questions from the 18-20 member audience and symposium presenters.

Wicked Problems and Applied Economics

Sat, 09 Aug 2008 16:36:02 GMT

AAEA Fellows address by Sandra Batie, Michigan State University, at the Orlando AAEA meetings. Wicked (complex) problems such as related to climate change, water resources, and a myriad of other larger issues cannot generally be solved using only traditional economics approaches, but also need attention using alternative ways of doing economics (e.g. institutional and behavioral economics) in consort with other disciplines. Batie draws implications for applied economics. Intriguingly, Batie's wicked problems analysis is well served with the Bromley Sufficient Reason framework. The integration of the Bromley Sufficient Reason and the Dual Interests (Meta) frameworks is especially well suited for framing and solving these complex problems. (We ask your patience and understanding with this audio podcast... you will have to turn-up the volume to its maximum to hear it, or, better yet, use "ear buds" or a headset... in that we did not have a microphone at the podium, but rather just did the best we could with a digital recorder in the room; in contrast, the podcasts in the Sufficient Reason symposium are of higher quality/louder due to using a microphone system for doing the recording).

Attachments:
PDF of Wicked Problems PowerPoint