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Applying Behavioural Insights to Public Policy
Simon Ruda
- 1. What are behavioural insights?
- 2. Who are the Behavioural Insights Team?
- 3. How can we apply behavioural insights to
Applying Behavioural Insights to Public Policy Simon Ruda Outline - - PowerPoint PPT Presentation
Applying Behavioural Insights to Public Policy Simon Ruda Outline - - PowerPoint PPT Presentation
Applying Behavioural Insights to Public Policy Simon Ruda Outline 1. What are behavioural insights? 2. Who are the Behavioural Insights Team? 3. How can we apply behavioural insights to public policy? What are Behavioural Insights?
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What are Behavioural Insights?
Behavioural Insights
Psychology Ethnography (Behavioural) Economics Public Policy
Understanding how people behave in practice so that we can design policy better
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The suspect game
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Suspect 1
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Suspect 2
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Suspect 3
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The suspect game
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Some random people
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Can you see a suspect?
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5 10 15 20 25 30 Simultaneous + Warning + Suspect Sequential + Warning + Suspect
% False Identifications without suspect in line-up
Stebley et al. 2001
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Danziger et al. 2010
Contextual factors affect professional decision making
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Contextual factors affect the biggest life decisions
1000 2000 3000 4000 5000 6000 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Annual suicides Year
Clarke et al. 1988
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“It turns out that the environmental effects on behavior are a lot stronger than most people expect” Daniel Kahneman We need to think differently about behaviour
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“Our government will find intelligent ways to encourage, support and enable people to make better choices for themselves.”
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The Behavioural Insights Team
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We work across the full spectrum of Government policy Crime Immigration Justice Health Education Social inequality Energy Labour market Tax
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UNCLASSIFIED
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“David Cameron’s Vanity Project”
Everyone hated us
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Press coverage
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Current policy Behavioural Insights policy
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Australia Singapore Peru (World Bank) USA Israel UK Moldova (UNDP) Ukraine (UNDP) Belarus (UNDP) Montenegro (UNDP) Guatemala (World Bank) Canada Oman UAE Germany Finland Netherlands Pakistan (DfID) India Mexico Jamaica (UNDP) Brazil (World Bank) Ethiopia (DfID)
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Tax
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Traditional policy levers
Regulation Incentives Information
Behavioural Insights
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Criminal sanctions Financial penalties HMRC adverts
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Nine out of ten people pay their tax on time
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Social norms to increase tax payment rates within 23 days (1 month)
33,6% 35,1% 35,9% 37,2% 39,0%
Control (8,558) UK Norm (8,300) Local Norm (8,403) Debt Norm (8,779) Local + Debt Norm (8,643)
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Our UK tax trials brought forward an extra $320million in 12 months at zero marginal cost.
Nine out of ten people pay their tax on time.
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1.6% 1.5%
12.1% 19.1%
Public gain (16,807) Public loss (17,159)
Loss-frame
People with large debts react differently Different groups respond to different messages Owe $50,000+
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Behavioural Insights Team in Latin America
- In Guatemala, tax revenue as a proportion of GDP is one of the
lowest in the world
Country 2012 Tax revenue (% of GDP) Guatemala 12% Nicaragua 18% Latin America 26% World Average 32%
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BIT and the World Bank: Tax Compliance in Latin America
43% increase
3,9% 4,3% 4,4% 5,0% 5,4% 5,6%
Control Original SAT Letter Behavioural Letter Behavioural + National Pride Behavioural + Deliberate Choice Behavioural + Social Norms
Percentage of taxpayers that paid tax by letter received
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Amount of tax received for each letter sent
$6,67 $6,82 $14,19 $16,16 $20,64 $24,62
Control Original BIT letter BIT + National Pride BIT + Social Norms BIT + Deliberate Choice
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Percentage of taxpayers who went on to make a payment the following year (with no further reminder)
4,3% 4,3% 4,3% 4,5% 5,0% 5,0%
Control Original SAT Letter Behavioural Letter Behavioural + National Pride Behavioural + Social Norms Behavioural + Deliberate Choice
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Giving money to charity
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Increasing payroll giving inside government
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The image of a colleague more than doubled the number of people who signed up
2,9% 6,4%
Control Group Image
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Proportion giving away a day’s salary to charity
5% 7% 11% 12% 17%
Control Group Celebrity Sweets Personal email Sweets + Personal
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Getting people back to work
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‘Implementation intentions’ – helping people plan their actions
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Proportion of people leaving social security benefits
51% 56%
Control Treatment
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After 39 weeks…
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 13 26 39 Weeks Since Pilot Start Employment Rate Treatment Group Control Group
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Increasing diversity of the police force
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Treatment message
The “affirmation boost”:
“Before you start the test, I’d like you to take some time to think about why you want to be a police
- constable. For example, what is it about being a
police constable that means the most to you and your community?”
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Reflecting societal diversity in Police recruits
111,9 105,9 112,1 110,5
Non-BME BME
Average test score
Control Treatment
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Re-shaping consumer markets
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Re-shaping markets
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Re-shaping markets
- 1. Scan your bill
- 2. Switch & save
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