With nearly 49,000 gun-related deaths in 2021, including homicides, suicides, and accidents, the United States has long been thought to be the gun capital of the world, with a staggering 120.5 firearms per 100 inhabitants. But its numbers pale in comparison to Latin America and the Caribbean when it comes to homicides. In 2021, nine […]

The post How Overconfidence Can Affect Gun Preferences and Undermine Safety appeared first on Ideas Matter.

Rosa, a 44-year-old woman who lives in Bogotá, has a problem when it comes to getting her 9-year-old girl, Alicia[1], vaccinated with the hugely effective Human Papilloma Virus (HPV) vaccine. She’s heard of the vaccine, but she hasn’t gotten it for Alicia because her pediatrician has not yet mentioned it in any of the girl’s […]

The post Increasing HPV Vaccination Rates in Latin America: A Guide for Policymakers appeared first on Ideas Matter.

European nations, stunned by Russia’s aggression, have mostly rallied in support of Ukraine, sending weapons and welcoming millions of refugees. But European citizens are paying dearly for it. Apart from the costs in direct assistance, the energy conflict with Russia had sent prices of gas soaring to eight times their 10-year average by the end […]

The post Behavioral Economics and the Energy Crisis in Europe appeared first on Ideas Matter.

Latin America and the Caribbean has faced several consecutive crises, from COVID to the Russian invasion of Ukraine, that have weakened countries’ ability to provide their citizens goods and services and underscored the need to increase rates. Budgets are tight and capital spending meager, and the region can’t afford rates of evasion for personal and […]

The post Nudging to Get Citizens to Pay Their Taxes and Improve the Delivery of Public Goods appeared first on Ideas Matter.

For democracy to function and economies prosper, people need to believe that their fellow citizens are trustworthy: that they are well intentioned, will honor commitments and will not take advantage of them. When people have little to no information about others, it is difficult to believe that. The fact that Latin America and the Caribbean […]

The post Employing Information to Boost Citizen Trust and Welfare appeared first on Ideas Matter.

How do people make decisions? How does behavior affect public policies? And can policymakers nudge people into doing things that will benefit them and society at large? Many issues related to the success of public policies come down to a, sometimes understudied, factor: human behavior. In our Behavioral Economics for Better Public Policies course, we […]

The post The Free Online Behavioral Economics Course Is Going Strong. Have You Taken It? appeared first on Ideas Matter.

The government says it is progressing in its fight against the COVID-19 pandemic, but firms distrust the news, delaying investments and hiring and slowing economic recovery. A firm manager distrusts her own employees and refuses to delegate responsibilities, complicating efforts to invest, innovate and move into new markets. Citizens distrust firms and demand excessive regulation, […]

The post When the Lack of Trust Cripples Productivity and Growth appeared first on Ideas Matter.

It would always get a laugh from readers of Peanuts. Lucy would hold the football for Charlie Brown to kick. Then she would pull it back at the last minute and send him flying onto his back. The gag, repeated over and over throughout the years, was funny because of Charlie’s absurdly trusting behavior. Having […]

The post Building Trust for Social Cohesion and Growth in Latin America and the Caribbean appeared first on Ideas Matter.

While the COVID-19 pandemic has killed almost five million, more people die every year because of air pollution, which accounts for about one in five deaths worldwide. The problem, moreover, is especially acute in low- and middle-income countries, where exposure to high levels of air pollution affects 90 percent of the population. Given the substantial […]

The post Trust: A Critical Component of the Fight Against Air Pollution appeared first on Ideas Matter.

Trust and a sense of citizenship are the pillars of thriving democracies. They are essential to the willingness of citizens to make individual sacrifices in pursuit of collective endeavors that drive a society’s success. Unfortunately, that trust and sense of citizenship have been at historical lows worldwide recently and have been declining even more rapidly […]

The post Testing the Impact of Social Media on Trust appeared first on Ideas Matter.

Although only 9% of the world’s population lives in Latin America and the Caribbean, the region accounts for a third of the world’s homicides. The cost of crime and violence in our region is very high: crime takes large numbers of lives, affects people’s safety and welfare, and hampers economic development. As evidence of this, one […]

The post To Fight Crime, Increase Trust appeared first on Ideas Matter.

Telemedicine—the delivery of medical services through electronic means of communication—is potentially transformative, mitigating transportation problems, bringing care to rural communities and decreasing waiting times and medical costs.  But its adoption in Latin America has been slow. Insufficient communication infrastructure and status quo biases, among other factors, have hampered its use. Regulation has not caught up. […]

The post COVID-19 and the Rise of Telemedicine appeared first on Ideas Matter.

With 9% of the world’s population and 33% of its homicides, Latin America and the Caribbean suffers from far too much violence. But government responses, heavily focused on punitive practices like mass incarceration, have fallen short. While incarceration has increased by 76% over the last decade, the region as a whole still has more than […]

The post Changing Public Attitudes to Combat a Crime Epidemic appeared first on Ideas Matter.

Lack of trust between individuals and between individuals and institutions is a chronic problem in Latin America and Caribbean and often linked to inequality. After all, in a region that ranks among the most unequal in the world, it is natural to distrust political elites who seem to coopt government and ensure that policies favor […]

The post How Perceptions of Inequality Affect Trust in Latin America and the Caribbean appeared first on Ideas Matter.

Since the COVID-19 pandemic began more than a year ago, much has been learned about how infection can be prevented. In particular, the scientific consensus holds that certain human behaviors, like social distancing, the avoidance of indoor gatherings, and the use of face masks, are powerful and effective at helping prevent the virus’s spread. Nonetheless, many people continue to meet with friends indoors, participate in social events, and walk about without masks. All this has helped propagate the […]

The post Appealing to Social Norms to Combat COVID-19 appeared first on Ideas Matter.

The COVID-19 pandemic is dramatically affecting the lives of hundreds of millions of people in Latin America and the Caribbean, taking lives and exacting an immense toll on individual and national economies. Governments have responded with urgent assistance. But with a more than 10% decline in revenues as a result of closed businesses and lost […]

The post Don’t Forget to Call: How Personal Interaction Boosts Tax Payments appeared first on Ideas Matter.

In a year when political institutions around the world were tested and pushed to their limits, understanding institutions and institutional features has become more important than ever. The rise of populism, increasing economic inequality, and the emergence of racial and other protests in the U.S. and globally—all against the backdrop of a deadly pandemic—have prompted a reexamining of political institutions and a […]

The post For a Region in Turmoil, An Updated Database of Political Institutions appeared first on Ideas Matter.

Covid-19 is still spreading rapidly on a global level, with more than 11.4 million cases and 407,000 deaths in Latin America and the Caribbean alone as of early November. This is happening despite the imposition of strict mobility restrictions and other constraints, like mask wearing and school closings. Indeed, in Argentina, with some of the […]

The post Communicating Better in the Covid-19 Era appeared first on Ideas Matter.

Latin America has achieved significant social progress in recent decades. From the 1990s through 2019, poverty fell by almost 50 percent: mortality in children under five was cut by more than half; and primary school education became nearly universal. But while significant investment was made to accomplish those outcomes, much more could have been achieved […]

The post Using Social Network Analysis to Identify Decision-Makers and Improve Public Policy appeared first on Ideas Matter.

With about 1.4 million people—including pre-trial detainees and convicts—held in penal institutions, Latin America is suffering from a dramatic incarceration crisis. Over the last ten years, the prison population in the region has grown by 76%, and today 241 people for every 100,000 in habitants are in detention, about twice the level of the European […]

The post How to Reduce Imprisonment in Latin America appeared first on Ideas Matter.

As Latin America and the Caribbean confronts one of the most severe economic downturns in its history, policymakers are looking ahead to what they must do in terms of fiscal and monetary policies to restore growth once the Covid-19 crisis passes. But one element that desperately needs more attention is the deep and chronic lack […]

The post The Elusive Quest for Growth: The Role of Trust appeared first on Ideas Matter.

The health news from Latin America is not good. The region has become the global epicenter of the Covid-19 epidemic, with nearly 4 million infections and 204,000 deaths as of mid-June. Moreover, the numbers are rising rapidly in several countries, including  Brazil, which lags only the United States in reported cases, Peru with the seventh […]

The post Behavioral Economics and the Urgent Need to Use Masks When Lockdowns Are Lifted appeared first on Ideas Matter.

As the Covid-19 pandemic takes its toll in lives lost and economic hardship, governments in Latin America and the Caribbean have rushed to increase fiscal spending, even as revenues drop. But only some countries will be able to access markets and borrow without sacrificing sustainability in the aftermath of the pandemic. Most will have to […]

The post Leveraging Behavioral Insights in the Aftermath of COVID-19 appeared first on Ideas Matter.

The number of people infected with the novel coronavirus has surpassed 5 million worldwide. However, a significant number of countries are entering a new phase in the fight against SARS-COV-2, as the virus that causes the Covid-19 illness is known. As can be seen from the following maps prepared using data from Oxford University, restrictions […]

The post COVID-19: We Must Use Behavioral Science to Communicate Better during the Delicate Reopening Period appeared first on Ideas Matter.

The pandemic caused by the novel coronavirus (SARS-CoV-2) continues to severely impact countries around the world. More than 4.5 million people have been confirmed infected, and the death count is now in the hundreds of thousands, although stringent restrictions on mobility have prevented a greater public health disaster. However, economic stagnation and fatigue among the […]

The post A Conversation with Cass Sunstein on Behavioral Science and Using Nudges: Recommendations for Overcoming Covid-19 appeared first on Ideas Matter.

Over the last few months, most Latin American and Caribbean countries have been able to flatten the curve of infections thanks to severe restrictions on mobility. The Human Mobility Map for Latin America and the Caribbean shows that the restrictions have worked and citizens are limiting their movements. Argentina saw a decline of almost 54% […]

The post How Can Behavioral Economics Improve Our Decision-Making during the Pandemic? appeared first on Ideas Matter.

In responding to the Covid-19 pandemic, not all countries have implemented equally strict policies. While Spain and most countries in Latin America and the Caribbean have chosen to mandate lockdowns by law, including using security forces for monitoring, control, and coercion, in other countries—such as Sweden—decisions regarding confinement and social distancing have been left up […]

The post Institutional Capacity and Trust: The Ingredients for Fewer Restrictions during the Pandemic appeared first on Ideas Matter.

With thousands of deaths worldwide, the coronavirus has spread panic in nearly all countries and territories where it has hit. People fear not only infection and death, but upheavals to their daily lives, rituals, and traditions. Everything from earning an income to having a normal family life or even putting food on the table has […]

The post In the Fight Against the Coronavirus, Behavioral Economics is a Potent Weapon appeared first on Ideas Matter.

Hundreds of thousands of protesters have poured into the streets in recent weeks from Chile and Colombia to Lebanon and Iraq. Transport hubs have been destroyed, stores looted, and government institutions attacked. Dozens have been killed. The immediate causes of the protests have been diverse, ranging from price hikes to rumored changes in laws affecting rights […]

The post When Inequality is Baked into the System appeared first on Ideas Matter.

As if we couldn’t think for ourselves when it comes to pouring hot liquids down our throats, the warnings about hot tea and coffee are ubiquitous. “Caution Handle with Care I’m Hot,” says one cup. “Caution Contents Hot,” says another, with variations on the theme repeated in thousands of restaurants and cafes around the world. Businesses, it […]

The post When Too Much Choice Distorts Electoral Results appeared first on Ideas Matter.

A Latin American president faces a steep economic downturn. She introduces fiscal austerity measures, perhaps a tax hike, to try to contain the damage. Mass protests erupt, police clash with demonstrators, and the political mood grows darker by the day. Can the president and her party survive? The short answer is usually no. In a […]

The post When Tax Hikes Doom Governments at the Polls appeared first on Ideas Matter.

Latin America needs to increase its rate of tax collection. With budgets tight and capital spending meager, the region can’t tolerate rates of evasion for personal and corporate income taxes of up to 50% in many countries. Moreover, in a region already very unequal, tax evasion tends to increase inequality. But the challenges of improving […]

The post The Pros and Cons of Simplified Tax Notices and Amnesties appeared first on Ideas Matter.

Trust is rare in Latin America, and only getting rarer. Economic and financial mismanagement, corruption scandals, and inequality have taken their toll. According to Latinóbarometro, an annual public opinion survey of 18 countries from the region, trust in government dropped from 45% in 2009 to 22% in 2018, and the share of people who are discontent […]

The post Can Government Commitments Win Back Citizens’ Trust in Latin America? appeared first on Ideas Matter.

When it comes to crime, we are easily swayed by false perceptions and information. We lose our wallet to a pickpocket or hear about a mugging in our generally safe neighborhood and immediately assume that we are in the midst of a crime epidemic. We are pushed to anxiety by politicians who peddle exaggerated homicide […]

The post When Anti-Crime Strategies Reflect Ignorance Rather than Knowledge appeared first on Ideas Matter.

Can interventions from behavioral economics get people to pay their taxes? It is a question of the greatest urgency in Latin America and the Caribbean where evasion of personal and corporate income taxes reaches as high as 50% in many countries, with significant impact on their scope of options. The short answer is that behavioral interventions […]

The post Behavioral Interventions on One Tax Can Boost Compliance Across the Board appeared first on Ideas Matter.

I recently attended the IlleXBehavior Meeting in Chicago, a gathering of  behavioral and tech consultancies and some of the largest companies in the United States. The meeting focuses on the latest insights from behavioral economics and neuroscience, and I must admit I was a bit skeptical at first. I half-expected the meeting to be a […]

The post A Walk on the Dark Side: Learning from Corporate Use of Behavioral Economics appeared first on Ideas Matter.

Go into any bar or restaurant in Latin America during the World Cup and you’ll witness ecstatic fist pumps, shouts and hugs after a goal by the national team. Sports makes for tribal celebration, and the shared experience that occurs when the tribe excels and triumphs can bond even strangers and serve as a powerful […]

The post Sports Programs Can Boost Solidarity and Strengthen Societies appeared first on Ideas Matter.

Soccer fans throughout Latin America will be glued to their televisions in June and July, basking in the excitement and pride that come with belonging to a region famed for its brilliance at the World Cup. But it’s not just about elite athletes. Since at least the days of the ancient Greeks, societies have understood […]

The post Sports can transform lives if we do it right appeared first on Ideas Matter.

The year 2017 may be the year behavioral economics found its place in the sun. Fifteen years after behavioral economics pioneer Daniel Kahneman won his Nobel Prize, its principles have been transformed into key policy tools in government, business, and development agencies. The 2017 Nobel Prize to Richard Thaler, one of its principle theoreticians and […]

The post Nudging Latin Americans to Healthier, More Prosperous Lives appeared first on Ideas Matter.

The voters of the United States will ultimately weigh in on the wisdom of the large $1.5 trillion tax cuts headed for a final vote before the end of the year in the U.S. Congress. They will make it clear in the November 2018 legislative elections whether they believe that steep reductions in corporate taxes […]

The post When Politics Distorts Tax Reform appeared first on Ideas Matter.

Caribbean countries still face a delicate fiscal situation. While a number of Caribbean economies have reduced their debt burden, the majority face high sovereign debt levels that weigh on their prospects for strong and sustainable growth. In the context of weak fiscal stances and high dependence on foreign external conditions, it makes sense to implement […]

The post The Good, Bad and Unexpected of Fiscal Rules appeared first on Ideas Matter.

“Nothing can be said to be certain, except death and taxes,” said the United States’ Benjamin Franklin. And few things are less pleasurably anticipated. But at least when it comes to taxes, the avoidance can make running a government especially hard. Behavioral economics, with its psychological insights into how information can be used to change citizens’ […]

The post Behavioral Economics and the Messaging That Works appeared first on Ideas Matter.

Richard Thaler, the University of Chicago professor who fused psychological insights and economics to reveal how biases affect decision-making, was awarded Oct. 8 the 2017 Nobel Prize in economics. The award, which recognizes Thaler’s work in overturning assumptions about economic behavior as rational and demonstrating how people could be “nudged” to make better choices, brings […]

The post How Nobel Ideas Inspired the IDB appeared first on Ideas Matter.

In the wake of its banking and economic crisis of 2002, Uruguay took some bold steps. Unlike other countries that squandered the commodities boom of the subsequent years, delaying fiscal reforms and, in many cases, worsening their long-term fiscal stance, the country embarked on a series of integral reforms in virtually every policy area, from […]

The post Should Reform Tackle Rules and Institutions Together? appeared first on Ideas Matter.

In the early 2000s, the Research Department of the IDB embarked on a deep exploration of policymaking in Latin America. What made countries in the region veer from state-controlled to market-centered policies? Why did they fail to reach their development goals and why did international aid assistance often come up short in helping them? The […]

The post A Fresh Look at Policymaking in Latin America appeared first on Ideas Matter.

What are the best ways to get people to change their behavior for their own, and society’s, good? Seeking to avoid coercion, policymakers increasingly turn to pricing strategies, like “sin taxes” on alcohol or cigarettes. Or they resort to techniques from behavioral economics like “nudges,” which employ peer pressure, moral appeals and suggestive images—such as […]

The post A Simple Nudge is a Better Nudge appeared first on Ideas Matter.

Residents of Hamburg, Germany may have been shocked by the violent protests that erupted July 6 and July 7 during the meeting of the G-20, as protesters armed with rocks and incendiary devices blockaded streets, set cars ablaze and battled with police officers. But for the inhabitants of many Latin American cities, such scenes are […]

The post Weak Institutions, Fiery Protests appeared first on Ideas Matter.

When the clock strikes midnight on December 31, it’s very common to start going over one’s New Year’s resolutions, like doing more exercise, eating healthier food or giving up bad habits. And it’s equally common to forget those resolutions only a couple weeks later. For that reason, sometimes an incentive needs to be added to […]

The post Rewards Help Tax Payments Become "Contagious" appeared first on Ideas Matter.

Government capacity is in part the ability to hit the long ball, to have long-term policies that look beyond the next election and the next change in administration. In economic policy, as in social policy and so many other areas, it can make all the difference. Unfortunately, in too many countries of Latin America and […]

The post When Government Capacity Creates Economic Options appeared first on Ideas Matter.

Since its founding in 2004, Facebook has boasted of its mission to “make the world more open and connected.” And with nearly 2 billion users, including more than 230 million in Latin America, it has in many ways earned boasting rights. Facebook is today the world’s dominant social media site for people sharing personal and […]

The post Moving Out of the Social Media Bubble to a More Robust Democracy appeared first on Ideas Matter.