Nudge on Choice Architecture
Effectiveness of Economic Recovery Policy and Irrational Behavior Predictions
DOI:
https://doi.org/10.21787/jbp.14.2022.239-250Keywords:
nudge, Top-Up Bantuan Langsung Tunai (BLT), policy efficiency, irrational predictablyAbstract
Economic recovery policy in low-income communities is a priority of the government in tackling the tidal wave of the economy during the COVID-19 pandemic. This study aims to map the government's priorities and rapid action in its careful planning also implementation. The challenge is how society has a drive about a wide range of choices that have many possibilities, namely maximizing added value to the aid or fulfilling desires that approach irrational behavior. Therefore, encouragement is needed by every individual to choose choices that are in line with the government's policy objectives to eliminate or eliminate extreme poverty. The method used is an analysis of social science and behavioral science with circumplex strategy, which is further analyzed in correlation with quantitative methods using Kendall W. Test analysis and continued double regression. The results showed that encouragement had a positive and insignificant influence on the effectiveness of BLT policies; predictions of irrational behavior have a negative and insignificant influence on the effectiveness of BLT policies; And together, nudge and irrational predictably have a positive and significant influence on the effectiveness of Top Up BLT policies. Recommendations on the encouragement in improving the architecture of choice are the collaboration between the program implementation team and related stakeholders; irrational behavior predictions are anticipating irrational behavior tendencies by understanding the vulnerability of preconditions and conditions in the implementation of the program; the maintenance of the commitment of the central and local government and village government in enforcing regulations.
Downloads
References
Al Izzati, R., Suryadarma, D., & Suryahadi, A. (2020). The Behavioral Effects of Unconditional Cash Transfers: Evidence from Indonesia. Smeru Research Institute.
Ariely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. HarperCollins.
Awaya, Y., Iwasaki, K., & Watanabe, M. (2019). Rational Bubbles and Middlemen. SSRN Electronic Journal, 1–41. https://doi.org/10.2139/ssrn.3380383
Buso, I. M., & Hey, J. (2021). Why Do Consumers Not Switch? An Experimental Investigation of a Search and Switch Model. Theory and Decision, 91(4), 445–476. https://doi.org/10.1007/s11238-021-09818-z
Córdoba, J. C., & Liu, X. (2022). Malthusian Stagnation Is Efficient. Theoretical Economics, 17(1), 415–460. https://doi.org/10.3982/TE3542
Crespo, R. F. (2011). Two Conceptions of Economics. Journal of Applied Economics, 14(2), 181–197. https://doi.org/10.1016/S1514-0326(11)60011-1
de Cooman, G., & Walley, P. (2002). A Possibilistic Hierarchical Model for Behaviour Under Uncertainty. Theory and Decision, 52(4), 327–374. https://doi.org/10.1023/A:1020296514974
Diacon, P. E. (2014). From Economic Behaviour to Behavioural Economics. Acta Universitatis Danubius OEconomica, 10(1), 171–180.
Esposito, L., & Chiappero-Martinetti, E. (2010). Multidimensional Poverty: Restricted and Unrestricted Hierarchy Among Poverty Dimensions. Journal of Applied Economics, 13(2), 181–204. https://doi.org/10.1016/S1514-0326(10)60009-8
Essay, R., Coleman, J., Press, T. B., & Coleman, J. (1990). Foundations of Social Theory. Choice Reviews Online, 27(11), 27-6637-27–6637. https://doi.org/10.5860/CHOICE.27-6637
Ford, J. L., Kelsey, D., & Pang, W. (2013). Information and Ambiguity: Herd and Contrarian Behaviour in Financial Markets. Theory and Decision, 75(1), 1–15. https://doi.org/10.1007/s11238-012-9334-3
Fulton, C. (2022). Choosing What to Pay Attention to. Theoretical Economics, 17(1), 153–184. https://doi.org/10.3982/TE3850
Isaac, S., & Michael, W. B. (1983). Handbook in Research and Evaluation: A Collection of Principles, Methods, and Strategies Useful in the Planning, Design, and Evaluation of Studies in Education and the Behavioral Sciences. EDITS Publisher.
ISEI. (2021). Kajian Kebijakan Publik 2.0: Tantangan Pemulihan Ekonomi Nasional dan Strategi Kebijakan Pengembangan Ekonomi Inklusif di Era New Normal. Pengurus Pusat Ikatan Sarjana Ekonomi Indonesia.
Isna, A., & Warto. (2013). Analisis Data Kuantitatif (B. Pratikno (ed.)). STAIN Press.
Julmi, C. (2019). When Rational Decision-Making Becomes Irrational: A Critical Assessment and Re-conceptualization of Intuition Effectiveness. Business Research, 12(1), 291–314. https://doi.org/10.1007/s40685-019-0096-4
Kahneman, D. (1994). New Challenges to the Rationality Assumption. Journal of Institutional and Theoretical Economics (JITE), 150(1), 18–36. https://www.jstor.org/stable/40753012
Kirchgässner, G. (2013). The Weak Rationality Principle in Economics. Swiss Journal of Economics and Statistics, 149(1), 1–26. https://doi.org/10.1007/BF03399379
Kostis, P. C. (2021). Culture, Innovation, and Economic Development. Journal of Innovation and Entrepreneurship, 10(1), 22. https://doi.org/10.1186/s13731-021-00163-7
Krstić, M., & Pavlović, N. (2020). Behavioral Economics: New Dimension in Understanding the Real Economic Behavior (pp. 281–298). https://doi.org/10.4018/978-1-7998-4601-7.ch015
Lades, L. K., Laffan, K., & Weber, T. O. (2021). Do Economic Preferences Predict Pro-environmental Behaviour? Ecological Economics, 183, 106977. https://doi.org/10.1016/j.ecolecon.2021.106977
Liang, J. (2022). Data Analysis on the Irrationality Behind Consumption and Investment Behaviors. Proceedings of the 2021 International Conference on Social Development and Media Communication (SDMC 2021), 631, 1548–1552. https://doi.org/10.2991/assehr.k.220105.286
Lourenço-Gomes, L., Pinto, L. M. C., & Rebelo, J. (2013). Using Choice Experiments to Value a World Cultural Heritage Site: Reflections on the Experimental Design. Journal of Applied Economics, 16(2), 303–331. https://doi.org/10.1016/S1514-0326(13)60013-6
Maital, S. (2004). Daniel Kahneman: On Redefining Rationality. The Journal of Socio-Economics, 33(1), 1–14. https://doi.org/10.1016/j.socec.2003.12.006
McGrath, J. E. (1995). Methodology Matters: Doing Research in the Behavioral and Social Sciences. In Readings in Human–Computer Interaction (pp. 152–169). Elsevier. https://doi.org/10.1016/B978-0-08-051574-8.50019-4
Moreh, J. (1989). The Authority of Moral Rules. Theory and Decision, 27(3), 257–273. https://doi.org/10.1007/BF00135099
Permana, Y. (2020). Explaining Satisficing Through Risk Aversion. Theory and Decision, 89(4), 503–525. https://doi.org/10.1007/s11238-020-09767-z
Pötzsch, R. (1972). Decision-Theoretic Aspects of Risk-Taking Behaviour. Theory and Decision, 3(2), 107–125. https://doi.org/10.1007/BF00141051
Schiaffino, P., Crespo, R. F., & Heymann, D. (2017). Processing Uncertainty: Evolving Beliefs, Fallible Theories, Rationalizations and the Origins of Macroeconomic Crises. Journal of Applied Economics, 20(2), 305–328. https://doi.org/10.1016/S1514-0326(17)30014-4
Schröder, D., & Gilboa Freedman, G. (2020). Decision Making Under Uncertainty: The Relation Between Economic Preferences and Psychological Personality Traits. Theory and Decision, 89(1), 61–83. https://doi.org/10.1007/s11238-019-09742-3
Song, Z., Yan, T., & Jiang, T. (2020). Poverty Aversion or Inequality Aversion? The Influencing Factors of Crime in China. Journal of Applied Economics, 23(1), 679–708. https://doi.org/10.1080/15140326.2020.1816130
Sugiyono. (2016). Metode Penelitian Manajemen. Alfabeta.
Thaler, R. H., & Sunstein, C. R. (2020). Nudge: Memperbaiki Keputusan tentang Kesehatan, Kekayaan, dan Kebahagiaan. Gramedia Pustaka Utama.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Author(s)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.