Wellbeing is the Goal with Prof. Frank Schilbach (S4:E2)

Episode Summary: MIT Prof. Frank Schilbach helps us reframe our traditional understanding of economics. Episode Notes: Do you always make the best possible choices, even when you’re stressed or short on sleep? The ideally rational person (“Homo economicus”) assumed by conventional economics always acts in ways that are materially advantageous to them. But Associate Professor Frank Schilbach seeks in his research and teaching to explore the ways in which Homo economicus fails as a model of actual human behavior; in particular, Prof. Schilbach is interested in uncovering the psychological factors that influence people’s choices, even when those choices appear obviously counterproductive and irrational. In this episode, Prof. Schilbach discusses how psychologically-informed interventions can not only boost people’s productivity, earnings, and savings, but can even increase their tendency toward benevolence and cooperation. As he puts it, while economists have not ignored mental health altogether, they have tended to view it instrumentally, in terms of its effects on productivity or financial stability. It would be better, he suggests, to view mental health as valuable for its own sake, as an inherent element of overall well-being–which is why he prioritizes students’ mental health by making assignments due not first thing in the morning but at 6 or 8 PM! Relevant Resources: MIT OpenCourseWare https://ocw.mit.edu/ The OCW Educator Portal https://ocw.mit.edu/educator/ Professor Schilbach’s behavioral economics course on OCW https://ocw.mit.edu/courses/14-13-psychology-and-economics-spring-2020/ Professor Schilbach’s faculty page https://economics.mit.edu/people/faculty/frank-schilbach Professor Schilbach at the Abdul Latif Jameel Poverty Action Lab https://www.povertyactionlab.org/person/schilbach Music in this episode by Blue Dot Sessions http://www.sessions.blue/ Connect with Us: If you have a suggestion for a new episode or have used OCW to change your life