No abstract

Recent findings in Economic Psychology on the thinking and judgment of economic laymen can help to improve economic policy advice. First, based on psychological theories and empirical findings, the notion of the Homo oeconomicus is challenged. The economic situation is judged by laymen using implicit theories and biases, which are not in line with neoclassical economics. Then, the relevance of these theories and heuristics is shown empirically by the systematically different opinions of economists and non-economists on economic policy measures like minimum wages and maximum salaries. Conclusions for policy advisors complement the analysis. Copyright 2009 die Autoren Journal compilation 2009, Verein für Socialpolitik und Blackwell Publishing Ltd.