Behavioral economics reshapes social program analysis for better societal outcomes
Benefit-cost analysis is changing to consider how people really make decisions, not just assuming they always act rationally. This means looking at how people value things like health and the environment, how they think about time, and how they care about others. By understanding these factors, we can make better decisions about social programs. It's important to gather good information and think carefully about what people really want when making policy choices.