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What would it truly mean to treat individuals "as real people" when designing public policies? This paper addresses this question by critically assessing the arguments put forth by Mario Rizzo and Glen Whitman's Escaping Paternalism: Rationality, Behavioral Economics, and Public Policy (2019). Rizzo and Whitman argue that the endeavor of Behavioral Economics to reintroduce psychology into economics and to critique the narrow concept of homo economicus used by neoclassical economics was commendable. However, Behavioral Economics failed to deliver the theoretical breakaway from Neoclassical Economics that it promised. They argue that while Behavioral Economics rejects neoclassical rationality descriptively, it still adheres to it normatively, a move the authors find unjustified. The authors critique libertarian paternalism, a normative branch of Behavioral Economics, for its narrow concept of rationality, emphasizing the ambiguity in determining decision failures and true preferences. Moreover, even when it is apparent that agents are behaving erroneously, implementing policy measures to rectify the situation would be an almost impossible task or, in a worst-case scenario, could have unintended negative consequences. Overall, the book excels in scrutinizing the methodological foundations of libertarian paternalism. Building on their critique, in the final chapter of the book, the authors endeavor to outline their vision for the future of behavioral public policy. They advocate for treating humans as intricate beings rather than mere marionettes. [ABSTRACT FROM AUTHOR]

Bangladesh's remarkable achievements in economic and social progress have placed the country in a position that was unimaginable just 20 years ago. However, has such improvement in development outcomes been equal across all areas within the country? We aim to address this question by analyzing district-level income per capita derived from the 2000 and 2016 rounds of the Household Income and Expenditure Survey. Using models based on standard neoclassical economic convergence theory, which may also account for natural disasters, we find little evidence of convergence. This suggests that income differentials among Bangladesh's 64 districts persist. We also examined the possibility of multiple steady states by estimating models with a three-club structure based on income percentiles as registered in 2000. However, we found no evidence of conditional convergence. Additionally, we explored the potential for endogenous club formation using regression trees and machine learning algorithms. Yet, once again, the results did not support convergence. Overall, our findings reveal no evidence of conditional convergence in income among Bangladesh's districts. This implies that policy implications might vary, with targeted interventions possibly necessary to address the specific factors hindering convergence among similar regions. [ABSTRACT FROM AUTHOR]

The third edition of "Foundations of Real-World Economics" by John Komlos has made significant improvements that enhance its usefulness for both teachers and students. The new edition is more accessible to undergraduate students, including those majoring in economics, business, and other social sciences. It addresses previous concerns about the book's accessibility, engagement with heterodox economics, discussion of feminist economics, and the inclusion of exercises for active learning. The new edition also includes chapters on the political consequences of the 2008 crisis, hidden racist elements in economics, and the impact of the COVID-19 pandemic on the economy. Overall, the book strikes a balance between critique and construction, making it a valuable resource for economics students and teachers. [Extracted from the article]