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Behavioural insight and regulatory governance: Opportunities and challenges

Author

Listed:
  • James Drummond

    (OECD)

  • Daniel Shephard

    (Columbia University)

  • Daniel Trnka

    (OECD)

Abstract
Governments are created and run by humans, who can experience the same behavioural biases and barriers as individuals in society. Therefore, it makes sense to explore how behavioural insights (BI) can be applied to the governance of regulatory policy making, and not just to the design of regulations themselves. Applying BI can help improve the efficiency and effectiveness of the decision-making process, which can, in turn, help improve regulatory decisions. This paper maps the ways in which barriers and biases can affect the institutions, processes and tools of regulatory governance, with a focus on regulatory oversight bodies and regulatory management tools. It concludes with practical ways governments can translate these findings into research and reforms that can help future-proof regulatory policy making and ensure it is agile, responsive and fit for tackling important and complex policy challenges.

Suggested Citation

  • James Drummond & Daniel Shephard & Daniel Trnka, 2021. "Behavioural insight and regulatory governance: Opportunities and challenges," OECD Regulatory Policy Working Papers 16, OECD Publishing.
    • Handle: RePEc:oec:govaah:16-en
    DOI: 10.1787/ee46b4af-en
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    More about this item

    Keywords

    Behavioural economics; Behavioural insights; Regulation; Regulatory governance; Regulatory policy;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy
    • F00 - International Economics - - General - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics

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