Data analytics

The Saturday Essay. The Anti-Poverty Experiment
by: Jason Zweig
Jun 06, 2015
Click here to view the full article on WSJ.com

TOPICS: Behavioral Economics

SUMMARY: In the U.S. and abroad, a new generation of data-driven programs is testing ways to help the poor to save more, live better and find their own way to economic security.

CLASSROOM APPLICATION: Students can evaluate the policies based on research from behavioral economics to alleviate poverty. Instructors can stress the importance of empirically measuring the effectiveness of anti-poverty policies.

QUESTIONS: 
1. (Introductory) Define the term "randomistas"? The work of randomistas is based on which field of study?

2. (Advanced) In the developing world, is poverty caused by economic geography or a lack of modern infrastructure? What is the evidence to support your answer?

3. (Advanced) Fill in the blank. In theory, people consider all relevant information to make objective judgments about risk, reward and the best choices they can afford. In fact, however, people in all walks of life: ________. Why are these factors problematic to the poor but not to the middle class?

4. (Introductory) What are the policies to reduce poverty noted in the article that the randomistas have discovered?

Reviewed By: James Dearden, Lehigh University