applying behavioural insights - securities...
TRANSCRIPT
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Applying Behavioural Insights to
Public Policy Simon Ruda
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1. What are behavioural insights?
2. Who are the Behavioural Insights Team?
3. How can we apply behavioural insights to
public policy?
Outline
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What are Behavioural Insights?
Behavioural Insights
Psychology
Ethnography
(Behavioural) Economics
Public Policy
Understanding how people behave in practice so
that we can design policy better
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The suspect game
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Suspect 1
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Suspect 2
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Suspect 3
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The suspect game
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Some random people
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Can you see a suspect?
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0
5
10
15
20
25
30
Simultaneous + Warning + Suspect Sequential + Warning + Suspect
% False Identifications without suspect in line-up
Stebley et al. 2001
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Danziger et al. 2010
Contextual factors affect professional decision
making
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Contextual factors affect the biggest life
decisions
0
1000
2000
3000
4000
5000
6000
1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Ann
ua
l suic
ide
s
Year
Clarke et al. 1988
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“It turns out that the environmental effects on
behavior are a lot stronger than most people
expect”
Daniel Kahneman
We need to think differently about behaviour
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“Our government will find intelligent ways to
encourage, support and enable people to
make better choices for themselves.”
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The Behavioural Insights Team
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We work across the full spectrum of
Government policy
Crime Immigration Justice
Health
Education
Social
inequality Energy
Labour market Tax
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UNCLASSIFIED 21
“David Cameron’s Vanity Project”
Everyone hated us
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Press coverage
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Current policy Behavioural Insights policy
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Australia
Singapore
Peru (World Bank)
USA Israel
UK
Moldova (UNDP)
Ukraine (UNDP)
Belarus (UNDP)
Montenegro (UNDP) Guatemala
(World Bank)
Canada
Oman
UAE
Germany
Finland Netherlands
Pakistan (DfID)
India
Mexico
Jamaica (UNDP)
Brazil (World Bank)
Ethiopia (DfID)
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Tax
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Traditional policy levers
Regulation
Incentives
Information
Behavioural
Insights
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Criminal sanctions
Financial penalties
HMRC adverts
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Nine out of ten people pay their tax on
time
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Social norms to increase tax payment rates
within 23 days (1 month)
33,6% 35,1% 35,9% 37,2% 39,0%
Control (8,558) UK Norm (8,300)
Local Norm (8,403)
Debt Norm (8,779)
Local + Debt Norm (8,643)
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Our UK tax
trials brought
forward an
extra
$320million in
12 months at
zero marginal
cost.
Nine out of ten people pay their tax on time.
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1.6% 1.5%
12.1%
19.1%
Public gain (16,807) Public loss (17,159)
Loss-frame
People with large debts react differently Different groups respond to different
messages
Owe $50,000+
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Behavioural Insights Team in Latin
America
• In Guatemala, tax revenue as a proportion of GDP is one of the
lowest in the world
Country 2012 Tax revenue (% of
GDP)
Guatemala 12%
Nicaragua 18%
Latin America 26%
World Average 32%
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BIT and the World Bank: Tax Compliance
in Latin America
43%
increase
3,9% 4,3% 4,4%
5,0% 5,4% 5,6%
Control Original SAT Letter
Behavioural Letter
Behavioural + National Pride
Behavioural + Deliberate
Choice
Behavioural + Social Norms
Percentage of taxpayers that paid tax by letter received
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Amount of tax received for each letter sent
$6,67 $6,82
$14,19 $16,16
$20,64
$24,62
Control Original BIT letter BIT + National Pride BIT + Social Norms BIT + Deliberate Choice
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Percentage of taxpayers who went on to make a
payment the following year (with no further reminder)
4,3% 4,3% 4,3% 4,5% 5,0% 5,0%
Control Original SAT Letter Behavioural Letter Behavioural + National Pride
Behavioural + Social Norms
Behavioural + Deliberate Choice
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Giving
money to
charity
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Increasing payroll giving inside government
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The image of a colleague more than doubled
the number of people who signed up
2,9%
6,4%
Control Group Image
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Proportion giving away a day’s salary to
charity
5% 7%
11% 12%
17%
Control Group Celebrity Sweets Personal email Sweets + Personal
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Getting people back
to work
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‘Implementation intentions’ – helping people
plan their actions
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Proportion of people leaving social security
benefits
51% 56%
Control Treatment
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After 39 weeks…
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0 13 26 39
Weeks Since Pilot Start
Em
plo
ym
en
t R
ate
Treatment Group Control Group
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Increasing
diversity of
the police
force
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Treatment message
The “affirmation boost”:
“Before you start the test, I’d like you to take some
time to think about why you want to be a police
constable. For example, what is it about being a
police constable that means the most to you and
your community?”
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Reflecting societal diversity in Police recruits
111,9
105,9
112,1 110,5
Non-BME BME
Average test score
Control
Treatment
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Re-shaping
consumer markets
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Re-shaping markets
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Re-shaping markets
1. Scan your bill 2. Switch & save
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