Volume 2 (2007)
Most Downloaded Articles
- Basic Income and Labour Supply: The German Case by Gilroy, Bernard Michael/ Heimann, Anastasia and Schopf, Mark
- Classical Liberalism and the Basic Income by Zwolinski, Matt
- Basic Income, Occupational Freedom and Antipoverty Policy by Haagh, Louise
- Locke on Basic Income by Layman, Daniel
- Two Libertarian Arguments for Basic Income Proposals by Powell, Brian K.
Behavioral Economics and the Basic Income Guarantee
Citation Information: Basic Income Studies. Volume 5, Issue 2, ISSN (Online) 1932-0183, DOI: 10.2202/1932-0183.1167, December 2010
- Published Online:
This article provides a critical discussion of the potential contributions behavioral economics makes to the idea of a Basic Income Guarantee (BIG). Behavioral economics suggests that the consequences of a basic income may be significantly different from the ones predicted by the Standard Economic Model. Three topics from this literature are analyzed and linked to the BIG idea: Prospect Theory, Motivation Crowding Theory, and Conspicuous Consumption. The article argues that a basic income may be efficiency enhancing under some conditions, but at the same time incentives related to positional concerns may increase wasteful expenditure following its implementation.