Liberal Paternalism, Nudges and Economic Policy
According to the findings of behavioural economics, individuals rarely
behave as most economists would predict. Indeed, the extremely rational
homo economicus comes out as an abstraction. Usually individuals suffer
from several types of cognitive limitations that lead them to choose the
wrong means to achieve the ends they pursue. The paper starts by offering
a brief introduction to the main findings of behavioural economics. Then, it
focuses on the claim that those findings provide sound ground for claiming
a sort of liberal paternalism where the state can help individuals to achieve
their chosen ends without interfering with their freedom of choice. This
can be done by means of well thought out nudges, mainly exploiting what
we know on the influence of the choice architecture. The lively debate
originated by such a claim – mainly focused around the possibility of
combining freedom of choice with paternalism – is briefly summarized. The
main conclusion is that too little attention has been paid in that debate to
the non-paternalistic justifications of economic policy and to the possibility
that nudges enlarge the set of weapons at the disposal of economic policy
independently from the possibility of a liberal version of paternalism.
Keywords: Nudge, paternalism, economic policy, behavioural economics
Parole chiave: Nudge, paternalismo, politica economica, economia comportamentale