EC5217 - Behavioural Economics for Sustainable Policy

Credit points:	03
Year:	2013
Student Contribution Band:	Band 3
Administered by:	School of Business

This subject steps beyond the standard assumption of 'rationality' that is often adopted in economics - looking instead at what does, and does not, happen in markets when other behaviours influence individual decision making. Covering topics such as regret and disappointment theory, money illusion, and loss aversion, new insights are gained into why the market can and does deliver sub-optimal (non-sustainable) outcomes. A range of different policies that seek to redress problems in areas such as health and the environment (many of which arise from those behaviours) are analysed, and their ability to redress problems using traditional economic 'price-based' policies as well as more innovative 'non-price' mechanisms are explored. The subject is tailored to students who (envision to) work at a position that requires advanced economics skills.

Learning Outcomes

• Understand a range of different models that seek to explain the behavioural drivers of (among others) regret and disappointment theory, money illusion, and loss aversion and subsequent market failures;
• Demonstrate a systemic understanding of and advanced ability to use the models to make predictions about the possible consequences of those behaviours on society, and to derive policy solutions to problems posed in these circumstances;
• Demonstrate extensive familiarity with the way in which a range of heuristics and beliefs can influence individual behaviours thus creating market failure.

Graduate Qualities

• The ability to appraise information critically;
• The ability to use independent judgment to synthesise information to make intellectual and/or creative advances;
• The ability to think laterally and be original;
• The ability to conceptualise and evaluate a range of potential solutions to relevant problems;
• The ability to encompass and use methods and conceptual advances in areas of knowledge cognate to their central area(s) of expertise;
• The ability to evaluate and extrapolate from the outcomes of their research;
• The ability to conduct their research in an ethical manner;
• The ability to communicate the methodology, results and implications of their research in a manner appropriate to different purposes and audiences;
• The ability to make constructive contributions to project teams or collegial activities.

Assumed Knowledge:	Introductory subjects in Economics and Statistics
Inadmissible Subject Combinations:	BX2124

Availabilities
Townsville, Internal, Study Period 2
Census Date 29-Aug-2013
Coord/Lect:	Dr Riccardo Welters.
Contact hours:	26 hours lectures 12 hours tutorials 3 hours workshops/Seminars
Assessment:	end of semester exam (30%); quizzes or tests (30%); assignments (40%).

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.