Improving public policy through behavioral economics


Professor Chetty has been widely recognized for his research that combines empirical evidence and economic theory to help design more effective government policies. This is Part One of our conversation.

For part 2 of our conversation, on the use of administrative data (or “big data”) for research on what works in public policy, click here.”

World Justice Project (WJP) Open Government Index


“The World Justice Project (WJP) Open Government Index™ provides scores and rankings on four dimensions of government openness: publicized laws and government data, right to information, civic participation, and complaint mechanisms (full descriptions below). Scores are based on responses to household surveys and in-country expert questionnaires collected for the WJP Rule of Law Index. The WJP Open Government Index 2015 covers a total of 102 countries and jurisdictions.

This index is the product of two years of development, consultation, and vetting with policy makers, civil society groups, and academics from several countries. It is our hope that over time this diagnostic tool will help identify strengths and weaknesses in countries under review and encourage policy choices that enhance openness, promote effective public oversight, and increase collaboration amongst public and private sectors.

Mobile Spans Language Gap to Aid Human Trafficking Victims


Aida Akl at VOATechTonics: “A mobile solution from the Mekong Club, a non-profit group dedicated to fighting slavery, helps identify potential trafficking victims among populations where the person’s country of origin and language is unknown, and lets law enforcement agencies communicate with them.

The Android app was the product of collaboration between the Mekong Club, the United Nations Action for Cooperation Against Trafficking in Persons, and MotherApp, a private company that developed the app for free.

To communicate with potential victims, users press an icon which brings up a sample of flags on the phone’s screen, said Mathew Friedman, CEO of the Mekong Club, in an email interview.

A screenshot from the human trafficking mobile app shows potential human trafficking victims the flags of several countries. Once users choose thee one that corresponds to them, a video in their language comes on and asks them questions about whether they are being exploited and need help.

Users then tap the flags that correspond to their countries of origin. “Once this has been done,” Friedman added, “a video in the language of the country comes up informing the respondent of his/her rights, assuring them of confidentiality, and explaining that the officials playing the video to them are there to help should they require assistance.”

The videos pose a number of questions for users to respond to by pressing either a green button for an affirmative answer or a red button for a negative response.

A screenshot from the Mekong Club's mobile app shows some of the questions users are asked to determine if they are victims of human trafficking. (The Mekong Club)

The questions help law enforcement officials determine if the respondent is a victim of human trafficking.

“If all of the users’ answers are in the affirmative, then that would indicate a potential problem,” said Friedman.

Organizations that tested the app found it useful in bridging the translation gap. Friedman said the easy-to-use app offers an option for responders to triage potential victims in locations where translation is absent and allows the user to take notes and record audio/visual information….

Once developed, Friedman said the app will be cost-effective because “putting it on responder phones doesn’t cost anything.” But he lamented that it was only able to help “about 48,000″ trafficking victims last year — “well below one percent,” he said….(More)”

Institutional isomorphism, policy networks, and the analytical depreciation of measurement indicators: The case of the EU e-government benchmarking


Paper by Cristiano Codagnone et al: “This article discusses the socio-political dimension of measurement in the context of benchmarking e-government within the European Union׳s Open Method of Coordination. It provides empirical evidence of how this has resulted in institutional isomorphism within the self-referential policy network community involved in the benchmarking process. It argues that the policy prominence retained by supply-side benchmarking of e-government has probably indirectly limited efforts made to measure and evaluate more tangible impacts. High scores in EU benchmarking have contributed to increasing the institutionally-perceived quality but not necessarily the real quality and utility of e-government services. The article concludes by outlining implications for policy and practical recommendations for filling the gaps identified in measurement and evaluation of e-government. It proposes a more comprehensive policy benchmarking framework, which aims to ensure a gradual improvement in measurement activities with indicators that reflect and follow the pace of change, align measurement activities to evaluation needs and, eventually, reduce measurement error….(More)”

Why Entrepreneurs Should Go Work for Government


Michael Blanding interviewing Mitchell B. Weiss for HBS Working Knowledge:  “…In the past five years, cities around the world have increasingly become laboratories in innovation, producing idea labs that partner with outside businesses and nonprofits to solve thorny public policy problems—and along the way deal with challenges of knowing when to follow the established ways of government and when to break the mold. States and federal government, too, have been reaching out to designers, engineers, and entrepreneurs to help redo their operations. The new US Digital Service, for example, follows other federal efforts like 18F and the Presidential Innovation Fellows to streamline government websites and electronic records—adapting from models in the UK and elsewhere.

“We have many talented people in government, but by and large they have tended to be analysts and strategists, rather than inventors and builders,” says Weiss, who hopes his course can help change that. “One reason we didn’t have them is we weren’t training them. At policy schools we had not been training people to be all that entrepreneurial, and at business schools, we were not prepping or prodding entrepreneurial people to enter the public sector or even just to invent for the public realm.”

“Government should be naturals at crowdsourcing”

Government entrepreneurship takes many forms. There are “public-public entrepreneurs” who work within government agencies, as well as “private-public entrepreneurs” who establish private businesses that sell to government agencies or sometimes to citizens directly.

In Philadelphia, for example, Textizen enables citizens to communicate with city health and human services agencies by text messages, leading to new enforcement on air pollution controls. In California, OpenCounter streamlined registration for small businesses and provided zoning clearances in a fraction of the usual time. In New York, Mark43 is developing software to analyze crime statistics and organize law enforcement records. And in Boston, Bridj developed an on-demand bus service for routes underserved by public transportation.

The innovations are happening at a scale large enough to even attract venture capital investment, despite past VC skepticism about funding public projects.

“There was this paradox—on the one hand, government is the biggest customer in the world; on the other hand, 90 out of 100 VCs would say they don’t back business models that sell to government,” says Weiss. “Though that’s starting to change as startups and government are starting to change.” OpenGov received a $15 million round of funding last spring led by Andreessen Horowitz, and $17 million was pumped into civic social-networking app MindMixer last fall….

Governments could attract even more capital by examining their procurement rules to speed buying, says Weiss, giving them that same sense of urgency and lean startup practices needed to be successful in entrepreneurial projects…(More)”

The Algorithmic Self


Frank Pasquale in The Hedgehog Review:“…For many technology enthusiasts, the answer to the obesity epidemic—and many other problems—lies in computational countermeasures to the wiles of the food scientists. App developers are pioneering behavioristic interventions to make calorie counting and exercise prompts automatic. For example, users of a new gadget, the Pavlok wristband, can program it to give them an electronic shock if they miss exercise targets. But can such stimuli break through the blooming, buzzing distractions of instant gratification on offer in so many rival games and apps? Moreover, is there another way of conceptualizing our relationship to our surroundings than as a suboptimal system of stimulus and response?
Some of our subtlest, most incisive cultural critics have offered alternatives. Rather than acquiesce to our manipulability, they urge us to become more conscious of its sources—be they intrusive advertisements or computers that we (think we) control. For example, Sherry Turkle, founder and director of the MIT Initiative on Technology and Self, sees excessive engagement with gadgets as a substitution of the “machinic” for the human—the “cheap date” of robotized interaction standing in for the more unpredictable but ultimately challenging and rewarding negotiation of friendship, love, and collegiality. In The Glass Cage, Nicholas Carr critiques the replacement of human skill with computer mediation that, while initially liberating, threatens to sap the reserves of ingenuity and creativity that enabled the computation in the first place.
Beyond the psychological, there is a political dimension, too. Legal theorist and Georgetown University law professor Julie Cohen warns of the dangers of “modulation,” which enables advertisers, media executives, political consultants, and intelligence operatives to deploy opaque algorithms to monitor and manipulate behavior. Cultural critic Rob Horning ups the ante on the concerns of Cohen and Turkle with a series of essays dissecting feedback loops among surveillance entities, the capture of important information, and self-readjusting computational interventions designed to channel behavior and thought into ever-narrower channels. Horning also criticizes Carr for failing to emphasize the almost irresistible economic logic behind algorithmic self-making—at first for competitive advantage, then, ultimately, for survival.
To negotiate contemporary algorithms of reputation and search—ranging from resumé optimization on LinkedIn to strategic Facebook status updates to OkCupid profile grooming—we are increasingly called on to adopt an algorithmic self, one well practiced in strategic self-promotion. This algorithmic selfhood may be critical to finding job opportunities (or even maintaining a reliable circle of friends and family) in an era of accelerating social change. But it can also become self-defeating. Consider, for instance, the self-promoter whose status updates on Facebook or LinkedIn gradually tip from informative to annoying. Or the search engine−optimizing website whose tactics become a bit too aggressive, thereby causing it to run afoul of Google’s web spam team and consequently sink into obscurity. The algorithms remain stubbornly opaque amid rapidly changing social norms. A cyber-vertigo results, as we are pressed to promote our algorithmic selves but puzzled over the best way to do so….(More)
 

Choosing Not to Choose: Understanding the Value of Choice


New book by Cass Sunstein: “Our ability to make choices is fundamental to our sense of ourselves as human beings, and essential to the political values of freedom-protecting nations. Whom we love; where we work; how we spend our time; what we buy; such choices define us in the eyes of ourselves and others, and much blood and ink has been spilt to establish and protect our rights to make them freely.
Choice can also be a burden. Our cognitive capacity to research and make the best decisions is limited, so every active choice comes at a cost. In modern life the requirement to make active choices can often be overwhelming. So, across broad areas of our lives, from health plans to energy suppliers, many of us choose not to choose. By following our default options, we save ourselves the costs of making active choices. By setting those options, governments and corporations dictate the outcomes for when we decide by default. This is among the most significant ways in which they effect social change, yet we are just beginning to understand the power and impact of default rules. Many central questions remain unanswered: When should governments set such defaults, and when should they insist on active choices? How should such defaults be made? What makes some defaults successful while others fail?….
The onset of big data gives corporations and governments the power to make ever more sophisticated decisions on our behalf, defaulting us to buy the goods we predictably want, or vote for the parties and policies we predictably support. As consumers we are starting to embrace the benefits this can bring. But should we? What will be the long-term effects of limiting our active choices on our agency? And can such personalized defaults be imported from the marketplace to politics and the law? Confronting the challenging future of data-driven decision-making, Sunstein presents a manifesto for how personalized defaults should be used to enhance, rather than restrict, our freedom and well-being. (More)”

The Epidemic of Facelessness


Stephen Marche in the New York Times: “….Every month brings fresh figuration to the sprawling, shifting Hieronymus Bosch canvas of faceless 21st-century contempt. Faceless contempt is not merely topical. It is increasingly the defining trait of topicality itself. Every day online provides its measure of empty outrage.

When the police come to the doors of the young men and women who send notes telling strangers that they want to rape them, they and their parents are almost always shocked, genuinely surprised that anyone would take what they said seriously, that anyone would take anything said online seriously. There is a vast dissonance between virtual communication and an actual police officer at the door. It is a dissonance we are all running up against more and more, the dissonance between the world of faces and the world without faces. And the world without faces is coming to dominate…..

The Gyges effect, the well-noted disinhibition created by communications over the distances of the Internet, in which all speech and image are muted and at arm’s reach, produces an inevitable reaction — the desire for impact at any cost, the desire to reach through the screen, to make somebody feel something, anything. A simple comment can so easily be ignored. Rape threat? Not so much. Or, as Mr. Nunn so succinctly put it on Twitter: “If you can’t threaten to rape a celebrity, what is the point in having them?”

The challenge of our moment is that the face has been at the root of justice and ethics for 2,000 years. The right to face an accuser is one of the very first principles of the law, described in the “confrontation clause” of the Sixth Amendment of the United States Constitution, but reaching back through English common law to ancient Rome. In Roman courts no man could be sentenced to death without first seeing his accuser. The precondition of any trial, of any attempt to reconcile competing claims, is that the victim and the accused look each other in the face.

For the great French-Jewish philosopher Emmanuel Levinas, the encounter with another’s face was the origin of identity — the reality of the other preceding the formation of the self. The face is the substance, not just the reflection, of the infinity of another person. And from the infinity of the face comes the sense of inevitable obligation, the possibility of discourse, the origin of the ethical impulse.

The connection between the face and ethical behavior is one of the exceedingly rare instances in which French phenomenology and contemporary neuroscience coincide in their conclusions. A 2009 study by Marco Iacoboni, a neuroscientist at the Ahmanson-Lovelace Brain Mapping Center at the University of California, Los Angeles, explained the connection: “Through imitation and mimicry, we are able to feel what other people feel. By being able to feel what other people feel, we are also able to respond compassionately to other people’s emotional states.” The face is the key to the sense of intersubjectivity, linking mimicry and empathy through mirror neurons — the brain mechanism that creates imitation even in nonhuman primates.

The connection goes the other way, too. Inability to see a face is, in the most direct way, inability to recognize shared humanity with another. In a metastudy of antisocial populations, the inability to sense the emotions on other people’s faces was a key correlation. There is “a consistent, robust link between antisocial behavior and impaired recognition of fearful facial affect. Relative to comparison groups, antisocial populations showed significant impairments in recognizing fearful, sad and surprised expressions.” A recent study in the Journal of Vision showed that babies between the ages of 4 months and 6 months recognized human faces at the same level as grown adults, an ability which they did not possess for other objects. …

The neurological research demonstrates that empathy, far from being an artificial construct of civilization, is integral to our biology. And when biological intersubjectivity disappears, when the face is removed from life, empathy and compassion can no longer be taken for granted.

The new facelessness hides the humanity of monsters and of victims both. Behind the angry tangles of wires, the question is, how do we see their faces again?

(More)”

Scenario Planning Case Studies Using Open Government Data


New Paper by Robert Power, Bella Robinson, Lachlan Rudd, and Andrew Reeson: “The opportunity for improved decision making has been enhanced in recent years through the public availability of a wide variety of information. In Australia, government data is routinely made available and maintained in the http://data.gov.au repository. This is a single point of reference for data that can be reused for purposes beyond that originally considered by the data custodians. Similarly a wealth of citizen information is available from the Australian Bureau of Statistics. Combining this data allows informed decisions to be made through planning scenarios.”

We present two case studies that demonstrate the utility of data integration and web mapping. As a simple proof of concept the user can explore different scenarios in each case study by indicating the relative weightings to be used for the decision making process. Both case studies are demonstrated as a publicly available interactive map-based website….(More)”

The Trouble With Disclosure: It Doesn’t Work


Jesse Eisinger at ProPublica: “Louis Brandeis was wrong. The lawyer and Supreme Court justice famously declared that sunlight is the best disinfectant, and we have unquestioningly embraced that advice ever since.
All this sunlight is blinding. As new scholarship is demonstrating, the value of all this information is unproved. Paradoxically, disclosure can be useless — and sometimes actually harmful or counterproductive.
“We are doing disclosure as a regulatory move all over the board,” says Adam J. Levitin, a law professor at Georgetown, “The funny thing is, we are doing this despite very little evidence of its efficacy.”…
Of course, some disclosure works. Professor Levitin cites two examples. The first is an olfactory disclosure. Methane doesn’t have any scent, but a foul smell is added to alert people to a gas leak. The second is ATM. fees. A study in Australia showed that once fees were disclosed, people avoided the high-fee machines and took out more when they had to go to them.
But to Omri Ben-Shahar, co-author of a recent book, ” More Than You Wanted To Know: The Failure of Mandated Disclosure,” these are cherry-picked examples in a world awash in useless disclosures. Of course, information is valuable. But disclosure as a regulatory mechanism doesn’t work nearly well enough, he argues.
First, it really works only when things are simple. As soon as transactions become complex, disclosure starts to stumble. Buying a car, for instance, turns out to be several transactions: the purchase itself, the financing, maybe the trade-in of old car and various insurance and warranty decisions. These are all subject to various disclosure rules, but making the choices clear and useful has proved nigh impossible.
In complex transactions, we then must rely on intermediaries to give us advice. Because they are often conflicted, they, too, become subject to disclosure obligations. Ah, even more boilerplate to puzzle over!
And then there’s the harm. Over the years, banks that sold complex securities often stuck impossible-to-understand clauses deep in prospectuses that “disclosed” what was really going on. When the securities blew up, as they often did, banks then fended off lawsuits by arguing they had done everything the law required and were therefore not liable.
“That’s the harm of disclosure,” Professor Ben-Shahar said. “It provides a safe harbor for practices that smell bad. It sanitizes every bad practice.”
The anti-disclosure movement is taking on the ” Nudge” school, embraced by the Obama administration and promoted most prominently by Cass R. Sunstein, a scholar at Harvard, and Richard H. Thaler, an economist at the University of Chicago. These nudgers believe that small policies will prod people to do what’s in their best interests.
The real-world evidence in favor of nudging is thin. …
The ever-alluring notion is that we are just one or two changes away from having meaningful disclosure. If we could only have annual Securities and Exchange Commission filings in plain English, we could finally understand what’s going on at corporations. A University of San Diego Law School professor, Frank Partnoy, and I called for better bank disclosure in an article in The Atlantic a few years ago.
Professor Ben-Shahar mocks it. ” ‘Plain English!’ ‘Make it simple.’ That is the deus ex machina, the god that will solve everything,” he said.
Complex things are, sadly, complex. A mortgage is not an easy transaction to understand. People are not good at predicting their future behavior and so don’t know what options are best for them. “The project of simplification is facing a very poor empirical track record and very powerful theoretical problem,” he said.
What to do instead? Hard and fast rules. If lawmakers want to end a bad practice, ban it. Having them admit it is not enough. (More)”