Applies the psychological insights of behavioral economics to economic concepts such as moral hazard, deadweight loss, and incidence. Explores how deviations from the standard economic model of decisionmaking--imperfect optimization, bounded self-control, and nonstandard preferences--might...

Updates and expands the assessment of the long-term budgetary outlook, addressing such issues as the collapse of the congressional budgetary process and the threat posed by the termination of discretionary spending caps. Concludes with a look at how the nation's deficit will affect America now...