Behavioral economics questions the basic underpinnings of economic theory, showing that people often do not act consistently in their own self-interest when making economic decisions. While these findings have important theoretical implications, they also provide a new lens for examining public policies, such as taxation, public spending, and the provision of adequate pensions. How can people be encouraged to save adequately for retirement when evidence shows that they tend to spend their money as soon as they can? Would closer monitoring of income tax returns lead to more honest taxpayers or a more distrustful, uncooperative citizenry? Behavioral Public Finance, edited by Edward McCaffery and Joel Slemrod, applies the principles of behavioral economics to government's role in constructing economic and social policies of these kinds and suggests that programs crafted with rational participants in mind may require redesign.
Behavioral Public Finance looks at several facets of economic life and asks how behavioral research can increase public welfare. Deborah A. Small, George Loewenstein, and Jeff Strnad note that public support for a tax often depends not only on who bears its burdens, but also on how the tax is framed. For example, people tend to prefer corporate taxes over sales taxes, even though the cost of both is eventually extracted from the consumer. James J. Choi, David Laibson, Brigitte C. Madrian, and Andrew Metrick assess the impact of several different features of 401(k) plans on employee savings behavior. They find that when employees are automatically enrolled in a retirement savings plan, they overwhelmingly accept the status quo and continue participating, while employees without automatic enrollment typically take over a year to join the saving plan. Behavioral Public Finance also looks at taxpayer compliance. While the classic economic model suggests that the low rate of IRS audits means far fewer people should voluntarily pay their taxes than actually do, John Cullis, Philip Jones, and Alan Lewis present new research showing that many people do not underreport their incomes even when the probability of getting caught is a mere one percent.

Human beings are not always rational, utility-maximizing economic agents. Behavioral economics has shown how human behavior departs from the assumptions made by generations of economists. Now, Behavioral Public Finance brings the insights of behavioral economics to analysis of policies that affect us all.

EDWARD J. MCCAFFERY is Robert C. Packard Trustee Chair in Law and Political Science at the University of Southern California and visiting professor of law and economics at the California Institute of Technology.

JOEL SLEMROD is Paul W. McCracken Collegiate Professor of Business Economics and Public Policy, director of the Office of Tax Policy Research in the Stephen M. Ross School of Business, and professor of economics at the University of Michigan.

CONTRIBUTORS: Caroline Adams, Jonathan Baron, James J. Choi, Terrence Chorvat, John Cullis, Henk Elffers, Richard A. Epstein, Hanming Fang, Lee Anne Fennell, Bruno S. Frey, Howell E. Jackson, Philip Jones, David Laibson, Alan Lewis, George Loewenstein, Brigitte C. Madrian, Edward J. McCaffery, Andrew Metrick, Joel Slemrod, Dan Silverman, Deborah A. Small, Jeff Strnad, Alois Stutzer, and Paul Webley.

This comprehensive work—relevant to the major issue of the relation of social knowledge to political power—argues for strengthening the role of the social sciences in the federal government. It calls for a central organization for the social sciences and for better integration of research within the federal agencies. It underscores the various factors that might help to bring about this goal.

GENE M. LYONS is professor of government at Dartmouth College.
 

The reach of the social and behavioral sciences is currently so broad and interdisciplinary that staying abreast of developments has become a daunting task. The thirty papers that constitute Leading Edges in Social and Behavioral Science provide a unique composite picture of recent findings and promising new research opportunities within most areas of social and behavioral research. Prepared by expert scholars under the auspices of the National Academy of Sciences, these timely and well-documented reports define research priorities for an impressive range of topics:

Part I: Mind and Brain

Part II: Behavior in Social Context

Part III: Choice and Allocation

Part IV: Evolving Institutions

Part V: Societies and International Orders

Part VI: Data and Analysis

R. DUNCAN LUCE is Distinguished Professor of Cognitive Science and director of the Irvine Research Center in Mathematic Behavioral Science at the University of California, Irvine.

NEIL J. SMELSER is University Professor of Sociology at the University of California, Berkeley.

DEAN R. GERSTEIN is study director at the National Research Council, National Academy of Sciences.

CONTRIBUTORS: Norma Graham, Linda Bartosik, Albert S. Bregman, Julian Hichberg, Azriel Rosenfeld, Michael Studdert-Kennedy, R. Duncan Luce, Richard Thompson, Carol Barnes, Thomas Carew, Lon Cooper, Michela Gallagher, Michael Posner, Robert Rescola, Daniel Schachter, Larry Squire, Alan Wagner, Saul Steinebers, Fergus I.M. Clark, John Jonedes, Walter Kinsch, Stephen M. Kosslyn, James L. McClelland, Raymond S. Nickerson, James Greeno, Frederick J. Newmeyer, Antonio R. Damasio, Merrill Garrett, Mark Lieberman, David Lightfoot, Howard Poizner, Thomas Roeper, Eleanor Saffran, Ivan Sag, Victoria Fromkin, Herbert Pick, Ann L. Brown, Carol Dweck, Robert Emde, Frank Keil, David Klahr, Ross S. Parke, Steven Pinker, Rochel Gelman, David S. Krantz, Leonard Epstein, Norman Garmezy, Marcha Ory, Leonard Perlin, Judith Rodin, Marvin Stein, John F. Kihlstrom, Ellen Berscheid, John Darley, Reid Hastie, Harold Kelley, Sheldon Stryker, Edward E. Jones, Nancy M,. Henley, Rose Laub Cosner, Jane Flax, Naomi Quinn, Kathryn Rish Sklar, Sherry B. Ortner, Alfred Blumstein, Richard Berk, Philip Cook, David Farrington, Samuel Krislov, Albert J. Reiss Jr., Franklin Zimring, William Riker, James S. Coleman, Bernard Grofman, Michael Hechter, John Ledyard, Charles Plott, Kenneth Shepsle, John Ferejohn,  Mark Machina, Robin Hogarth, Kenneth MacCrimmon, John Roberts, Alvin Roth, Paul Slovic, Rihard Thaler, Oliver Williamson, Jerry Hausman, Paul Joskow, Roger Noll, Vernon Smith, David Wise, Stanley Reiter, Kenneth Arrow, Lance Davis, Paul Dimaggio, Mark Granovetter, Jerry Green, Theodore Groves, Michael Hannan, Andrew Postlewaite, Roy Radner, Karl Shell, Leonid Hurwicz, Frank Stafford, Jamoes Baron, Danier Hamermesh, Christopher Jencks, Ross Stolzenberg, Donald J. Treiman, Stanley Fischer, William Beeman, Rudiger Dornbusch, Thomas Sargent, Robert Schiller, Lawrence Summers, Glynn Isaac, Robert Blumenschine, Margaret Conkey, Terry Deacon, Irven Devore, Peter Ellison, Richard Milton, David Pilbeam, Richard Potts, Kathy Schick, Margaret Schoeninger, Andrew Sillen, John Speth, Nicholas Toth, Sherwood Washburn, Douglas C. North, Robert Bates, Robert Brenner, Elizabeth Colson, Kent Flannery, Vernon Smith, Neil Smelser, Samuel Preson, Ansley Coale, Kingsley Davis, Geoffrey McNicoll, Jane Menken, T. Paul Schultz, Daniel Vining, John Modell, Margaret Clark, William Goode, William Kessen, Robert Willis, John Quigley, Alex Anas, Geoffrey Hewings, Risa Palm, James Fernandez, Keith Basso, Karen Blu, Kenneth Boulding, Stepher Gudeman, Michael Kearney, Goerge Marcus, Dennis McGilvary, Emiko Ohnuki-Tierney, William Sewell, Daniel H. Levine, Leonard Binder, Thomas Bruneau, Jean Comaroff, Susan Harding, Charles Keyes, Robert Wuthnow, Dorothy Nelkin, Charles Rosenberg, Theda Skocpol, Martin Bulmer, Thomas Joster, Donald McCloskey, Arnold Thackeray, Carol Weiss, Peter Evans, Bruce Cumings, Albert Fishlow, Peter Gourevitch, John Meyer, Alejandro Portes, Barbara Stallings, Robert Jervis, Josh Lederberg, Robert North, Steven Rosen, Dina Zinnes, Warren Miller, Martin David, James Davis, Bruce Russett, Kimball Romney, Norman Bradburn, J. Douglas Carol. Roy D'Andrade, Jean Claude Falmagne, Paul Holland, Lawrence Hubert, Edward E. Leamer, John W. Pratt, Cliffors C. Clogg, Bert F. Green, Michael Hannan, Jerry A. Hausman, William H. Kruskal, Donald B. Rubin, I. Richard Savaga, John W. Turkey, Kenneth W. Wachter, Leo A. Goodman.

"How to inform the judicial mind," Justice Frankfurter remarked during the school desegregation cases, "is one of the most complicated problems." Social research is a potential source of such information. Indeed, in the 1960s and 1970s, with activist courts at the forefront of social reform, the field of law and social science came of age. But for all the recent activity and scholarship in this area, few books have attempted to create an intellectual framework, a systematic introduction to applied social-legal research.

Social Research in the Judicial Process addresses this need for a broader picture. Designed for use by both law students and social science students, it constructs a conceptual bridge between social research (the realm of social facts) and judicial decision making (the realm of social values). Its unique casebook format weaves together judicial opinions, empirical studies, and original text. It is a process-oriented book that teaches skills and perspectives, cultivating an informed sensitivity to the use and misuse of psychology, social psychology, and sociology in apellate and trial adjudication. Among the social-legal topics explored are school desegregation, capital punishment, jury impartiality, and eyewitness identification.

This casebook is remarkable for its scope, its accessibility, and the intelligence of its conceptual integration. It provides the kind of interdisciplinary teaching framework that should eventually help lawyers to make knowledgeable use of social research, and social scientists to conduct useful research within a legally sophisticated context.

WALLACE D. LOH is professor of law and adjunct professor of psychology at the University of Washington.

How do people decide whether to sacrifice now for a future reward or to enjoy themselves in the present? Do the future gains of putting money in a pension fund outweigh going to Hawaii for New Year's Eve? Why does a person's self-discipline one day often give way to impulsive behavior the next? Time and Decision takes up these questions with a comprehensive collection of new research on intertemporal choice, examining how people face the problem of deciding over time.

Economists approach intertemporal choice by means of a model in which people discount the value of future events at a constant rate. A vacation two years from now is worth less to most people than a vacation next week. Psychologists, on the other hand, have focused on the cognitive and emotional underpinnings of intertemporal choice. Time and Decision draws from both disciplinary approaches to provide a comprehensive picture of the various layers of choice involved.

Shane Frederick, George Loewenstein, and Ted O'Donoghue introduce the volume with an overview of the research on time discounting and focus on how people actually discount the future compared to the standard economic model. Alex Kacelnik discusses the crucial role that the ability to delay gratification must have played in evolution. Walter Mischel and colleagues review classic research showing that four year olds who are able to delay gratification subsequently grow up to perform better in college than their counterparts who chose instant gratification. The book also delves into the neurobiology of patience, examining the brain structures involved in the ability to withstand an impulse.

Turning to the issue of self-control, Klaus Wertenbroch examines the relationship between consumption and available resources, showing, for example, how a high credit limit can lead people to overspend. Ted O'Donoghue and Matthew Rabin show how people's awareness of their self-control problems affects their decision-making. The final section of the book examines intertemporal choice with regard to health, drug addiction, dieting, marketing, savings, and public policy.

All of us make important decisions every day-many of which profoundly affect the quality of our lives. Time and Decision provides a fascinating look at the complex factors involved in how and why we make our choices, so many of them short-sighted, and helps us understand more precisely this crucial human frailty.

GEORGE LOEWENSTEIN is professor of economics and psychology, Department of Social and Decision Sciences, Carnegie Mellon University.

DANIEL READ is reader in operational research, London School of Economics and Political Science.

ROY F. BAUMEISTER is the Eppes Professor of Psychology, Florida State University.

Many of our most urgent national problems suggest a widespread lack of concern for the future. Alarming economic conditions, such as low national savings rates, declining corporate investment in long-term capital projects, and ballooning private and public debt are matched by such social ills as diminished educational achievement, environmental degradation, and high rates of infant mortality, crime, and teenage pregnancy. At the heart of all these troubles lies an important behavioral phenomenon: in the role of consumer, manager, voter, student, or parent, many Americans choose inferior but immediate rewards over greater long-term benefits.

Choice Over Time offers a rich sampling of original research on intertemporal choice—how and why people decide between immediate and delayed consequences—from a broad range of theoretical and methodological perspectives in philosophy, political science, psychology, and economics. George Loewenstein, Jon Elster, and their distinguished colleagues review existing theories and forge new approaches to understanding significant questions: Why do people seem to "discount" future benefits? Do individuals use the same decision-making strategy in all aspects of their lives? What part is played by situational factors such as the certainty of delayed consequences? How are decisions affected by personal factors such as willpower and taste?

In addressing these issues, the contributors to Choice Over Time address many social, economic, psychological, and personal time problems. Their work demonstrates the predictive power of short-term preferences in behavior as varied as addiction and phobia, the effect of prices on consumption, and the dramatic rise in debt and decline in savings. Choice Over Time provides an essential source for the most recent research and theory on intertemporal choice, offering new models for time preference patterns—and their aberrations—and presenting a diversity of potential solutions to the problem of "temporal myopia."

GEORGE LOEWENSTEIN is professor of economics and psychology, Department of Social and Decision Sciences, Carnegie Mellon University.

JON ELSTER is Edward L. Ryerson Distinguished Service Professor of Political Science and Philosophy at the University of Chicago.

CONTRIBUTORS: George Ainslie, Gary S. Becker, Robert H. Frank, Michael Grossman, Nick Haslam, Richard J. Herrnstein, Walter Mishel, Kevin M. Murphy, Drazen Prelec, Howard Rachlin, Andres Raineri, Monica L. Rodriquez, Thomas Schelling, Hersh M. Shefrin, Yuichi Shoda, Richard H. Thaler.

A penetrating analysis of the Selective Service System: its recruiting services, the makeup and attitude of those who serve on local draft boards, the criteria for deferment or rejection from service, and the application of the principle of universality in the present draft laws. Using data from several sources, the study also explores the position of blacks with respect to military service. Comprehensive recommendations are set forth.

ROGER W. LITTLE is associate professor of sociology at the University of Illinois at Chicago Circle.

CONTRIBUTORS:  Harry A. Marimon, James W. Davis Jr., Gary Wamsley, Merrill Roff,  Charles C. Moskos Jr., Irvin G. Katenbrink Jr. 

Winner of the 1980 C. Wright Mills Award from the Society for the Study of Social Problems

Winner of the 1981 Gladys M. Kammerer Award from the American Political Science Association

Winner of the 1999 Aaron Wildavsky Enduring Contribution Award from the Policy Studies Organization

First published in 1980, Street-Level Bureaucracy received critical acclaim for its insightful study of how public service workers, in effect, function as policy decision makers, as they wield their considerable discretion in the day-to-day implementation of public programs. Three decades later, the need to bolster the availability and effectiveness of healthcare, social services, education, and law enforcement is as urgent as ever. In this thirtieth anniversary expanded edition, Michael Lipsky revisits the territory he mapped out in the first edition to reflect on significant policy developments over the last several decades. Despite the difficulties of managing these front-line workers, he shows how street-level bureaucracies can be and regularly are brought into line with public purposes.

Street-level bureaucrats—from teachers and police officers to social workers and legal-aid lawyers—interact directly with the public and so represent the frontlines of government policy. In Street-Level Bureaucracy, Lipsky argues that these relatively low-level public service employees labor under huge caseloads, ambiguous agency goals, and inadequate resources. When combined with substantial discretionary authority and the requirement to interpret policy on a case-by-case basis, the difference between government policy in theory and policy in practice can be substantial and troubling.

The core dilemma of street-level bureaucrats is that they are supposed to help people or make decisions about them on the basis of individual cases, yet the structure of their jobs makes this impossible. Instead, they are forced to adopt practices such as rationing resources, screening applicants for qualities their organizations favor, “rubberstamping” applications, and routinizing client interactions by imposing the uniformities of mass processing on situations requiring human responsiveness. Occasionally, such strategies work out in favor of the client. But the cumulative effect of street-level decisions made on the basis of routines and simplifications about clients can reroute the intended direction of policy, undermining citizens’ expectations of evenhanded treatment.

This seminal, award-winning study tells a cautionary tale of how decisions made by overburdened workers translate into ad-hoc policy adaptations that impact peoples’ lives and life opportunities. Lipsky maintains, however, that these problems are not insurmountable. Over the years, public managers have developed ways to bring street-level performance more in line with agency goals. This expanded edition of Street-Level Bureaucracy underscores that, despite its challenging nature, street-level work can be made to conform to higher expectations of public service.

MICHAEL LIPSKY is senior program director of Demos, a non-partisan public policy research and advocacy organization, and an affiliate professor at Georgetown University.

Reaffirms the importance of the larger kinship network through analysis of extensive data on the clients of one social agency. The authors show that the less kinship-oriented caseworkers often attempt to change clients' kin relationships in the direction of less involvement, raising questions about value differences in therapeutic practice. The book also points to the importance of concepts, such as those dealing with family kinship, that will enable the caseworker to appraise the client's social relationships more fully. The authors emphasize the benefits to be derived from a closer liaison between social work and social science.

HOPE JENSEN LEICHTER is associate professor at Columbia University's Teacher's College.

WILLIAM E. MITCHELL is research associate in anthropology in the Department of Psychiatry at the Vermont College of Medicine.

Winner of the 2010 Best Book Award from the Rationality and Society Section of the American Sociological Association

As individuals’ ties to community organizations and the companies they work for weaken, many analysts worry that the fabric of our society is deteriorating. But others counter that new social networks, especially those forming online, create important and possibly even stronger social bonds than those of the past. In Social Commitments in a Depersonalized World, Edward Lawler, Shane Thye, and Jeongkoo Yoon examine interpersonal and group ties and propose a new theory of social commitments, showing that multiple interactions, group activities and, particularly, emotional attachment, are essential for creating and sustaining alignments between individuals and groups.

Lawler, Thye, and Yoon acknowledge that long-term social attachments have proven fragile in a volatile economy where people increasingly form transactional associations—based not on collective interest but on what will yield the most personal advantage in a society shaped by market logic. Although person-to-group bonds may have become harder to sustain, they continue to play a vital role in maintaining healthy interactions in larger social groups from companies to communities. Drawing on classical and contemporary sociology, organizational psychology, and behavioral economics, Social Commitments in a Depersonalized World shows how affiliations—particularly those that involve a profound emotional component—can transcend merely instrumental or transactional ties and can even transform these impersonal bonds into deeply personal ones.

The authors study the structures of small groups, corporations, economic transactions, and modern nation-states to determine how hierarchies, task allocation, and social identities help or hinder a group’s vitality. They find that such conditions as equal status, interdependence, and overlapping affiliations figure significantly in creating and sustaining strong person-to-group bonds. Recurring collaboration with others to achieve common goals—along with shared responsibilities and equally valued importance within an organization—promote positive and enduring feelings that enlarge a person’s experience of a group and the significance of their place within it. Employees in organizations with strong person-to-group ties experience a more unified, collective identity. They tend to work more cost effectively, meet company expectations, and better regulate their own productivity and behavior.

The authors make clear that the principles of their theory have implications beyond business. With cultures pulling apart and crashing together like tectonic plates, much depends on our ability to work collectively across racial, cultural, and political divides. The new theory in Social Commitments in a Depersonalized World provides a way of thinking about how groups form and what it takes to sustain them in the modern world.

EDWARD J. LAWLER is Martin P. Catherwood Professor of Industrial and Labor Relations and professor of sociology at Cornell Univeristy.

SHANE R. THYE is professor of sociology at the University of South Carolina.

JEONGKOO YOON is professor of business administration at the Ewha University, South Korea.