ECON 318 Lecture Notes - Lecture 4: Scatter Plot, Health Canada, Registered Retirement Savings Plan
9 Jul 2016
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Some of the material underlying this note comes from a paper by o"donohue and rabin entitled risky behavior among youths: some issues from behavioral economics". The full paper is available on rabin"s web site at berkeley. Students should read this note in conjunction with an early piece in the economist (april 6, 2006) at http://www. economist. com/node/6768159/print. The rational choice model of individual behavior has provided economists and economics with productive insights into human behavior, and consequently into the formation of policy. At the same time, it is widely recognized that not all decision making fits neatly into this paradigm. Many individuals display impetuous behavior in their intertemporal decisions. For economists it is important first to understand the reasons for these behaviors which appear to be inconsistent with the rational intertemporal model that has been the workhorse of the discipline. In the second instance it is important to formulate policies that will improve social outcomes.
