How 'nudge' happened: the political economy of nudging in the UK

Mills, Stuart and Whittle, Richard (2024) How 'nudge' happened: the political economy of nudging in the UK. Cambridge Journal of Economics. ISSN 0309-166X

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Abstract

The UK Behavioural Insights Team transformed nudging and behavioural economics from nascent ideas to key policy tools for the UK Coalition Government. This article argues that political economic circumstances significantly contributed to the success of this ‘nudge’ programme. The Global Financial Crisis (GFC) created a ‘contest of authority’ over dominant policy approaches. By framing the crisis as a crisis of rationality, behavioural perspectives gained political support. The GFC also saw that the UK Government (from 2010) adopt a programme of fiscal austerity. Nudging complemented this programme by suggesting effective policy could be made cheaply. Using various accounts of nudging in the UK from those involved in its development, we demonstrate the role of the country’s political economy in the behavioural turn. We conclude by reflecting on the role of behavioural insights today, given a political–economic landscape much changed since 2010.

Item Type:	Article
Additional Information:	© 2024 The Author(s)
Divisions:	LSE
Subjects:	B Philosophy. Psychology. Religion > BF Psychology
JEL classification:	D - Microeconomics > D9 - Intertemporal Choice and Growth > D90 - General
Date Deposited:	13 Nov 2024 09:00
Last Modified:	13 Nov 2024 09:00
URI:	http://eprints.lse.ac.uk/id/eprint/126042

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