Experimental Economics: A Test-Bed for the Unconditional Basic Income?

Abstract

Experimental economics is a method used by economists to explain or predict the behaviour of economic agents under a controlled institutional environment. This method can be used to test policies in order to inform policy-makers about the impact of proposed alternatives, referred to as ‘whispering in the ears of princes’ (Nobel prize winner Al Roth). In this chapter, we take a detailed look at this method and how it can help to understand the consequences of an Unconditional Basic Income. Additionally, we demonstrate a small scale experiments on risk-taking with and without the influence of the Unconditional Basic Income.