By Kurt Weyland
Why do very diversified international locations frequently emulate a similar coverage version? years after Ronald Reagan's income-tax simplification of 1986, Brazil followed an identical reform although it threatened to exacerbate source of revenue disparity and jeopardize nation sales. And Chile's pension privatization of the early Nineteen Eighties has unfold all through Latin the US and past even supposing many negative nations that experience privatized their social safeguard structures, together with Bolivia and El Salvador, lack a number of the preconditions essential to achieve this successfully.
In an important step past traditional rational-choice debts of coverage decision-making, this booklet demonstrates that bounded--not full--rationality drives the unfold of options throughout international locations. while looking recommendations to household difficulties, decision-makers usually think about overseas types, occasionally promoted by way of improvement associations just like the global financial institution. yet, as Kurt Weyland argues, policymakers practice inferential shortcuts on the danger of distortions and biases. via an in-depth research of pension and well-being reform in Bolivia, Brazil, Costa Rica, El Salvador, and Peru, Weyland demonstrates that decision-makers are captivated via neat, daring, cognitively to be had versions. And instead of completely assessing the prices and advantages of exterior types, they draw excessively enterprise conclusions from restricted info and overextrapolate from spurts of good fortune or failure. symptoms of preliminary good fortune can therefore set off an upsurge of coverage diffusion.
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Bounded Rationality and Policy Diffusion: Social Sector Reform in Latin America by Kurt Weyland