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A Behavioral Economics View of Poverty

Authors:
Publication Date:
Jan 2004
Project Programs:
Behavioral Economics

This paper argues that “behavioral patterns of the poor…may be neither perfectly calculating nor especially deviant. Rather, the poor may exhibit the same basic weaknesses and biases as do people from other walks of life, except that in poverty, with its narrow margins for error, the same behaviors often manifest themselves in more pronounced ways and can lead to worse outcomes.”

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