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OECD Journal on Budgeting

The OECD Journal on Budgeting is published three times per year. It draws on the best of the recent work of the OECD Committee of Senior Budget Officials (SBO), as well as special contributions from finance ministries, academics and experts in the field and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector.

English Also available in: French

Using behavioural insights to inform budget policy making: Eight Israeli case studies

This article summarises the Israeli experience with utilising behavioural insights in the work of budget officials and aims to assist budget officials in other OECD countries with integrating behavioural economics tools and evidence-based policy-making methods in their work. Behavioural economics has grown in recent years to become increasingly integrated in the work of public institutions, particularly those in the forefront of policy making. In the context of public budgeting, behavioural insights tools had initially focused on improving tax compliance. In this article we widen the scope of budget officials’ perspective, and responsibility, to develop behaviourally informed policies that are primarily citizen-focused. This approach harmonises and aligns the work of ministries of finance with public policy objectives more generally, and provides actionable “know how” based on the experience of the budget department in the Israeli Ministry of Finance.

English

Keywords: behaviourally informed policy, public budgeting, Behavioural economics
JEL: H3: Public Economics / Fiscal Policies and Behavior of Economic Agents; H6: Public Economics / National Budget, Deficit, and Debt; H60: Public Economics / National Budget, Deficit, and Debt / National Budget, Deficit, and Debt: General; H61: Public Economics / National Budget, Deficit, and Debt / Budget; Budget Systems; H30: Public Economics / Fiscal Policies and Behavior of Economic Agents / Fiscal Policies and Behavior of Economic Agents: General
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