Cultural Mindsets Profoundly Shape Economic Decisions, Unlocking New Policy Opportunities
Behavioral development economics shows that people's decisions are influenced by quick, intuitive thinking rather than rationality. Cultural beliefs and mental models greatly impact how we make choices. These mental models are linked to economic development and shape our preferences and behaviors. This research highlights the connection between culture, preferences, and institutions, offering new policy opportunities. This approach brings economics back to older perspectives and warns against oversimplifying decision-making processes.