Behavioral economics

the Economy, and Why it Matters for Global Capitalism in 2009. Both Shiller and Akerlof are highly recognizable names when it comes to economics. Akerlof is a professor of economics at the University of California Berkeley and is recognized by his achievements in 2001 where he was the Nobel Prize winner for economics. At Yale University, Shiller is also an economic professor and has recently accepted the Nobel Memorial Prize in 2013. Shiller and Akerlof chose a deliberate comic on the front…

Least Developed Countries if it meets three criteria 1. Poverty – adjustable criterion based on GNI per capita averaged over three years. 2. Economic vulnerability (based on instability of agricultural production, instability of exports of goods and services, economic importance of non-traditional activities, merchandise export concentration, handicap of economic smallness, and the percentage of population displaced by natural disasters). 3. Human resource weakness (based on indicators of…

Neuroeconomics is the multidisciplinary field that intertwines economics, psychology, and neuroscience to develop a unified explanation of human behavior (Glimcher, 2004). The choices that educated people make in everyday life sometimes leave neuroeconomists questioning their decision-making processes. With the help of neuroscience, researchers can determine exactly what is happening in our neural circuitry when confronted with difficult economic decisions, and can more thoroughly explain…

According to William Johnson (2014), a government should, among other things, work to provide economic growth, support those who are unable to support themselves, promote quality of life, promote the ability of individuals to succeed, and maintain a supply of essential resources. While many of these tasks today are supported by both the…

Mental accounting is a behavioral construct considered in economic psychology as an essential variable in explaining the saving and consumption behavior of consumers. Consumers employ mental accounting techniques to track their financial activities using account labels and rules. The presence of…

society? The article “A Link Between Fidgety Boys and a Sputtering Economy”, written by David Leonhardt, strikes the matter head-on, carrying the position that the educational issues of boys additionally connects to economic issues of our government. The author reasons that the behavioral split between girls and boys of our youth has an the largest impact upon the inconsistency of the government’s economy. With his sensible premises, Leonhardt sways readers with his…

INTRODUCTION Economics is a behavioral science, after all, it has everything to do with the behavior of man and the choices he makes. A human individual reasons in an ambitious way searching for pleasure and happiness. This results in a person with an unlimited quantity of needs regardless of his/her scarce resources. Let me introduce the economic man and his decision making process. ECONOMIC MAN According to Investopedia, the term “Economic Man” was developed to portrait a hypothetical…

world’s leading economists and economic historians. By utilising her knowledge and education in economic theory and quantitative analysis, Professor Goldin has made a series of outstanding and original contributions to the application of economic theory and quantitative methods to the study of history. Professor Goldin graduated from Cornell University in 1967 with a BA in Economics (Magna Cum Laude) before completing her Masters in 1969 and PhD in 1972 degrees in Economics at the University of…

constant. The Behavioral Life-Cycle Hypothesis (BLC) posits that the marginal propensity to consume is based on a consumer’s financial wealth, which is determined by the components of the consumer’s lifetime financial resources. The key assumption of the BLC is that the lifetime financial resources of a household consist of non-fungible wealth divided up as current income, current wealth, and future income. The BLC modifies the traditional life cycle model by incorporating the behavioral…

factors influence the change in the relationships between these markets, among them Geo-political factors. In “Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends” (Gayed and Gayed, 1990) explain each perspective and well advised to integrate the three and into Intermarket analysis.…