Using Behavioral Science in Public Finance
Using Behavioral Science for Better Decision-Making
Applications for Public Finance and Local Government
Designing for the Decision-Making Environment
Rather than thinking through decisions rationally and comprehensively, people use a variety of mental shortcuts to make decisions. Oftentimes, these shortcuts are harmless and even helpful. But sometimes they backfire. Find out how to plan mitigations for known biases and improve your ability to structure budget decisions for your organization.
Of Narratives and Numbers
Psychological research shows that people often grossly misunderstand and/or misuse numbers in favor of their preferred narrative. Finance officers can fall prey to the same pitfalls as less numerate people. If we better understand the relationship between narratives and numbers, then we can structure decisions more wisely.
The Myth of the Neutral Finance Officer
A popular conception of the public finance officer is as a neutral arbiter, perhaps like an umpire in a baseball game who calls balls and strikes. However, because the finance officer has a decisive role in architecting the decision-making environment by virtue of what information is presented and how it is presented, he or she cannot be perfectly neutral.
E-Learning Opportunity
GFOA hosted a series of popular webinars titled “Using Behavioral Science for Better Decision-Making.” If you missed the webinars you can sign up to watch the recordings through GFOA's Learning Management System.
GFOA "Test Kitchen" for New Ideas
This community is for all the GFOA member “chefs” who are interested in developing and testing new ideas and practices. Together, we expect to challenge the status quo, breakdown myths, cultivate and refine raw thoughts, and move beyond “this is the way we’ve always done it” to begin thinking about how to evolve public finance for the future.