Abstract
Experimental economics is a method used by economists to explain or predict the behaviour of economic agents under a controlled institutional environment. This method can be used to test policies in order to inform policy-makers about the impact of proposed alternatives, referred to as ‘whispering in the ears of princes’ (Nobel prize winner Al Roth). In this chapter, we take a detailed look at this method and how it can help to understand the consequences of an Unconditional Basic Income. Additionally, we demonstrate a small scale experiments on risk-taking with and without the influence of the Unconditional Basic Income.
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Notes
- 1.
Researchers and politicians give their opinions based on partial elements of a society, e.g. Goldin (2018). Five reasons why universal basic income is a bad idea, Financial Times, 11 February; Standing (2018) Universal basic income would enhance freedom and cut poverty, Financial Times, 14 February 2018.
- 2.
In Chapter 2, Delsen and Schilpzand use survey data to establish the expected changes in labour market behaviour of UBI in the European Union .
- 3.
Actually, given the schemes provided, the total net income in Kederer et al. (2017) is lower in the UBI schemes than in the simple tax scheme.
- 4.
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Füllbrunn, S., Delsen, L., Vyrastekova, J. (2019). Experimental Economics: A Test-Bed for the Unconditional Basic Income?. In: Delsen, L. (eds) Empirical Research on an Unconditional Basic Income in Europe. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-30044-9_7
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