The IDB Behavioral Economics Group applies insights from psychology and economics to improve public policies and development outcomes in Latin America and the Caribbean. By understanding how people make decisions, the group designs and tests behavioral interventions—such as "nudges"—that help individuals and institutions make better choices without restricting options.
Working with governments across the region, the group has implemented evidence-based solutions in areas including education, health, gender, tax compliance, and labor markets. Its work helps maximize the impact of public programs, making policies more effective, efficient, and responsive to people's real-world behavior.