Abstract
This paper analyzes the potential and challenges of applying behavioral economics to public policy design. Through a theoretical framework and international case studies, it highlights the benefits of using nudges and sludge audits to improve policy effectiveness and equity. Additionally, it emphasizes the need to move towards building decision infrastructures that incorporate structural changes and strengthen citizen autonomy. As a successful case, the paper presents the “Proyecto Imagina” in Spain, which applies these principles to promote youth engagement in public life. The paper concludes by proposing the creation of a National Behavioral Unit to institutionalize the rigorous and ethical use of behavioral economics in the public sector. This unit would help consolidate a culture of experimentation and strengthen the capacity of public administrations to design more inclusive, effective, and sustainable policies.
References
Agencia Tributaria. (2024). Plan Estratégico 2024–2027. Agencia Estatal de Administración Tributaria. https://sede.agenciatributaria.gob.es/static_files/Sede/Agencia_Tributaria/Planificacion/Plan_estrategico_2024_2027/PlanEstrategico2024.pdf
Allcott, H. (2011). Social norms and energy conservation. Journal of Public Economics, 95(9-10), 1082-1095.
Arbogast, I., Chorniy, A., & Currie, J. (2024). Administrative burdens and child Medicaid and CHIP enrollments. American Journal of Health Economics, 10(2), 237-271.
Banco Mundial. (2015). World Development Report 2015: Mind, Society, and Behavior. The World Bank. https://doi.org/10.1596/978-1-4648-0342-0
Banerjee, A. V., & John, P. (2021). Nudging and Public Policy: A Global Perspective. Cambridge University Press.
Banerjee, S., Grüne-Yanoff, T., John, P., & Moseley, A. (2024). It's time we put agency into behavioural public policy. Behavioural Public Policy, 8(4), 789-806.
Barberis, N. (2013). Psychology and the financial crisis of 2007–2008. Financial Innovation: too much or too little, 15-28.
Bettinger, E. P., Long, B. T., Oreopoulos, P., & Sanbonmatsu, L. (2012). The role of simplification and information in college decisions: Results from the H&R Block FAFSA experiment. American Economic Journal: Applied Economics, 3(2), 1-37.
Bovens, L. (2009). The ethics of nudge. In Preference change: Approaches from philosophy, economics and psychology (pp. 207-219). Dordrecht: Springer Netherlands.
Cadario, R., & Chandon, P. (2020). Which healthy eating nudges work best? A meta-analysis of field experiments. Marketing Science, 39(3), 465-486.
Campos-Mercade, P., Meier, A. N., Schneider, F. H., Wengström, E., & Schwerter, F. (2021). Monetary incentives increase COVID-19 vaccinations. Science, 374(6569), 879-882.
Chater, N. (2024). What is the point of behavioural public policy? A contractarian approach. Behavioural Public Policy, 8(2), 197-211.
Chater, N., & Loewenstein, G. (2023). The i-frame and the s-frame: How focusing on individual-level solutions has led behavioral public policy astray. Behavioral and Brain Sciences, 46, e147.
CNMC. (2023). La CNMC analizará cómo la economía conductual puede ayudar a los poderes públicos a regular y supervisar los mercados [Nota de prensa]. Comisión Nacional de los Mercados y la Competencia. https://www.cnmc.es/prensa/estudio-nudges-20230428
Comisión Europea: Joint Research Centre, DUPOUX, M., GAUDEUL, A., BAGGIO, M., BRUNS, H., CIRIOLO, E., KRAWCZYK, M., KUEHNHANSS, C. and NOHLEN, H., Unlocking the full potential of behavioural insights for policy, Publications Office of the European Union, Luxembourg, 2025, https://data.europa.eu/doi/10.2760/7367599, JRC138028.
Cortiñas Vázquez, P. (2022). ¿Cómo hemos llegado hasta aquí? Políticas conductuales y macroeconomía conductual, un poco de historia. Economistas, 179, 8-15.
Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627.
Dweck, C. S. (2006). Mindset: The new psychology of success. Random house.
Ewert, B., Loer, K., & Thomann, E. (2021). Beyond nudge: advancing the state-of-the-art of behavioural public policy and administration. Policy & Politics, 49(1), 3-23.
Farfan Bertran, M. G., Holla, A., & Vakis, R. (2021). Poor Expectations: Experimental Evidence on Teachers’ Stereotypes and Student Assessment: Poor Expectations: Experimental Evidence on Teachers' Stereotypes and Student Assessment (No. 9593). The World Bank.
Fundación Cotec para la Innovación. (2023). El uso de la economía del comportamiento en las empresas españolas. https://cotec.es/proyectos/economia-del-comportamiento
Ganzach, Y., & Karsahi, N. (1995). Message framing and buying behavior: A field experiment. Journal of Business Research, 32(1), 11-17.
Gauri, V., Rahman, T., & Sen, I. (2019). Measuring Social Norms About Female Labor Force Participation in Jordan. Development Economics, Development Research Group. The World Bank.
Grimmelikhuijsen, S., Jilke, S., Olsen, A. L., & Tummers, L. (2017). Behavioral public administration: Combining insights from public administration and psychology. Public Administration Review, 77(1), 45-56.
Grüne-Yanoff, T., & Hertwig, R. (2016). Nudge versus boost: How coherent are policy and theory?. Minds and Machines, 26(1), 149-183.
Hagmann, D., Ho, E. H., & Loewenstein, G. (2019). Nudging out support for a carbon tax. Nature Climate Change, 9(6), 484-489.
Hallsworth, M., List, J. A., Metcalfe, R. D., & Vlaev, I. (2017). The behavioralist as tax collector: Using natural field experiments to enhance tax compliance. Journal of Public Economics, 148, 14-31.
Halpern, D. (2015). Inside the nudge unit: How small changes can make a big difference. Random House.
Hansen, P. G., & Jespersen, A. M. (2013). Nudge and the manipulation of choice: A framework for the responsible use of the nudge approach to behavior change. European Journal of Risk Regulation, 4(1), 3-28.
Herd, P., & Moynihan, D. (2022). Behavior and burdens: Introduction to the symposium on behavioral implications of administrative burden. Journal of Behavioral Public Administration, 5(1).
Hernández, M., Karver, J., Negre, M., & Perng, J. (2019). Promoting Tax Compliance in Kosovo with Behavioral Insights (No. 31357). The World Bank Group.
Hertwig, R., & Grüne-Yanoff, T. (2017). Nudging and boosting: Steering or empowering good decisions. Perspectives on Psychological Science, 12(6), 973-986.
Kahneman, D. Thinking, Fast and Slow. New York: Farrar, Straus and Giroux, 2011.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-292.
Kizilcec, R. F., Pérez-Sanagustín, M., & Maldonado, J. J. (2020). Recommending self-regulated learning strategies in online education: A reinforcement learning approach. Computers & Education, 156, 103940.
Larrick, R. P. (2004). Debiasing. Blackwell Handbook of Judgment and Decision-Making, 316-338.
Leape, J. (2006). The London congestion charge. Journal of Economic Perspectives, 20(4), 157-176.
Luo, Y., Li, A., Soman, D., & Zhao, J. (2023). A meta-analytic cognitive framework of nudge and sludge. Royal Society Open Science, 10(11), 230053.
Michaelsen, P. (2024). Transparency and nudging: an overview and methodological critique of empirical investigations. Behavioural Public Policy, 1-11.
Mills, S., & Whittle, R. (2025). How ‘nudge’ happened: the political economy of nudging in the UK. Cambridge Journal of Economics, 49(1), 1-18.
Moynihan, D. (2018). A great schism approaching? Towards a micro and macro public administration. Journal of Behavioral Public Administration, 1(1).
Muñoz Boudet, A. M., Rahman, T., Nasr, N., & Dalton, A. (2023). Addressing Social and Gender Norms to Promote Gender Equality. World Bank Group, Gender Thematic Policy Notes Series.
OECD. (2017). Behavioural insights and public policy: Lessons from around the world. OECD Publishing.
OECD. (2024). Fixing frictions: “Sludge audits” around the world: How governments are using behavioural science to reduce psychological burdens in public services. OECD Public Governance Policy Papers (No. 48). OECD Publishing.
Outes-León, I., Sánchez, A., & Vakis, R. (2020). The Power of Believing You Can Get Smarter: The Impact of a Growth-Mindset Intervention on Academic Achievement in Peru. The World Bank.
Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68.
Sáez, M. E. C. (2020). Economía conductual para la protección del inversor: Recomendaciones prácticas para inversores, entidades y reguladores. Documentos de trabajo (CNMV), (70), 1-40.
Schmidt, R. (2024). A model for choice infrastructure: Looking beyond choice architecture in Behavioral Public Policy. Behavioural Public Policy, 8(3), 415-440.
Schmidt, R., & Stenger, K. (2024). Behavioral brittleness: The case for strategic behavioral public policy. Behavioural Public Policy, 8(2), 212-237.
Shahab, S., & Lades, L. K. (2024). Sludge and transaction costs. Behavioural Public Policy, 8(2), 327-348.
Shang, J., & Croson, R. (2009). A field experiment in charitable contribution: The impact of social information on the voluntary provision of public goods. Economic Journal, 119(540), 1422-1439.
Shiller, R. J. (2012). The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do About It. Princeton University Press.
Spence, A., & Pidgeon, N. (2010). Framing and communicating climate change: The effects of distance and outcome frame manipulations. Global Environmental Change, 20(4), 656-667.
Stead, M., Tagg, S., MacKintosh, A. M., & Eadie, D. (2013). Is consumer response to plain/standardised tobacco packaging consistent with framework convention on tobacco control guidelines? A systematic review of quantitative studies. PLOS ONE, 8(10), e75919.
Straßheim, H. (2020). The rise and spread of behavioral public policy: An opportunity for critical research and self-reflection. International Review of Public Policy, 2(2: 1), 115-128.
Sunstein, C. R. (2022). Sludge audits. Behavioural Public Policy, 6(4), 654-673.
Szollosi, A., Wang-Ly, N., & Newell, B. R. (2025). Nudges for people who think. Psychonomic Bulletin & Review, 1-11.
Thaler, R. H., & Benartzi, S. (2004). Save More Tomorrow™: Using behavioral economics to increase employee saving. Journal of Political Economy, 112(S1), S164-S187.
Thaler, R., & Sunstein, C. (2008). Nudge: Improving decisions about health, wealth and happiness. In Amsterdam Law Forum; HeinOnline: Online (p. 89).
Titmuss, R. M. (1970). The Gift Relationship: From Human Blood to Social Policy. Allen & Unwin.
Todd, P. M., & Gigerenzer, G. (2012). Ecological Rationality: Intelligence in the World. Oxford University Press.
Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124-1131.
Yeung, K. (2017). ‘Hypernudge’: Big Data as a mode of regulation by design. Information, Communication & Society, 20(1), 118-136.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2025 Behanomics