Structural Behavioral Economics
Stefano DellaVigna
Handbook of Behavioral Economics / NBER · 2018
Abstract
Makes the case for combining behavioral models with structural estimation—writing down and estimating models that recover behavioral parameters (present bias, reference dependence, social preferences) rather than only documenting anomalies.
Methodology
A methodological survey and synthesis of studies that estimate structural behavioral parameters from lab and field data, weighing the trade-offs between reduced-form transparency and structural extrapolation.
Findings
Shows that structural approaches let researchers quantify the magnitude of behavioral forces, compare them across settings, and run counterfactual policy simulations, while cautioning that structural estimates hinge on modeling assumptions that must be validated.
Applied nudge
Estimate the size of a behavioral effect, not just its existence—magnitudes determine whether a nudge clears cost-benefit thresholds and how it will transfer to new settings.
Citation
DellaVigna, S. (2018). Structural behavioral economics. NBER Working Paper No. 24797. In Handbook of Behavioral Economics.
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