Joseph Henrich and Natalie Smith
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199262052
- eISBN:
- 9780191601637
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199262055.003.0005
- Subject:
- Economics and Finance, Microeconomics
Experimental results are reported from Ultimatum and Public Goods Games performed among the Machiguenga of the Peruvian Amazon, the Mapuche and Huinca of southern Chile, and US control groups in Los ...
More
Experimental results are reported from Ultimatum and Public Goods Games performed among the Machiguenga of the Peruvian Amazon, the Mapuche and Huinca of southern Chile, and US control groups in Los Angeles and Ann Arbor (Michigan). The chapter begins with a brief ethno‐historical sketch of the Machiguenga, Mapuche, and Huinca, then the Ultimatum Game methodologies used are sketched and the results presented. Next, the Public Goods Game methodologies used are described, and those results presented – first for the Machiguenga/American comparison and then for the Mapuche/Huinca experiment. Three findings are emphasized: first, results from both the Ultimatum (bargaining) and Public Goods Games indicate much greater between‐group variation than previous work has suggested; second, if individual economic decisions vary as a consequence of differences in individuals’ circumstances, then variables such as wealth, household size, age, and sex should provide some explanatory power, but in fact individual‐level economic and demographic variables do not account for much, if any, of the variation found; and finally, despite the failure of individual‐level variables to explain variation, the results seem to reflect group‐level differences in the economic life of these groups, as captured in numerous ethnographic accounts. Some theoretical and methodological points related to the findings conclude the chapter.Less
Experimental results are reported from Ultimatum and Public Goods Games performed among the Machiguenga of the Peruvian Amazon, the Mapuche and Huinca of southern Chile, and US control groups in Los Angeles and Ann Arbor (Michigan). The chapter begins with a brief ethno‐historical sketch of the Machiguenga, Mapuche, and Huinca, then the Ultimatum Game methodologies used are sketched and the results presented. Next, the Public Goods Game methodologies used are described, and those results presented – first for the Machiguenga/American comparison and then for the Mapuche/Huinca experiment. Three findings are emphasized: first, results from both the Ultimatum (bargaining) and Public Goods Games indicate much greater between‐group variation than previous work has suggested; second, if individual economic decisions vary as a consequence of differences in individuals’ circumstances, then variables such as wealth, household size, age, and sex should provide some explanatory power, but in fact individual‐level economic and demographic variables do not account for much, if any, of the variation found; and finally, despite the failure of individual‐level variables to explain variation, the results seem to reflect group‐level differences in the economic life of these groups, as captured in numerous ethnographic accounts. Some theoretical and methodological points related to the findings conclude the chapter.
Thomas J. Sargent
- Published in print:
- 2013
- Published Online:
- October 2017
- ISBN:
- 9780691158709
- eISBN:
- 9781400847648
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691158709.001.0001
- Subject:
- Economics and Finance, Economic History
This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which the ...
More
This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which the author was awarded the 2011 Nobel Prize in economics. Rational expectations theory is based on the simple premise that people will use all the information available to them in making economic decisions, yet applying the theory to macroeconomics and econometrics is technically demanding. This book engages with practical problems in economics in a less formal, noneconometric way, demonstrating how rational expectations can satisfactorily interpret a range of historical and contemporary events. It focuses on periods of actual or threatened depreciation in the value of a nation's currency. Drawing on historical attempts to counter inflation, from the French Revolution and the aftermath of World War I to the economic policies of Margaret Thatcher and Ronald Reagan, the book finds that there is no purely monetary cure for inflation; rather, monetary and fiscal policies must be coordinated. This fully expanded edition includes the author's 2011 Nobel lecture, “United States Then, Europe Now.” It also features new articles on the macroeconomics of the French Revolution and government budget deficits.Less
This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which the author was awarded the 2011 Nobel Prize in economics. Rational expectations theory is based on the simple premise that people will use all the information available to them in making economic decisions, yet applying the theory to macroeconomics and econometrics is technically demanding. This book engages with practical problems in economics in a less formal, noneconometric way, demonstrating how rational expectations can satisfactorily interpret a range of historical and contemporary events. It focuses on periods of actual or threatened depreciation in the value of a nation's currency. Drawing on historical attempts to counter inflation, from the French Revolution and the aftermath of World War I to the economic policies of Margaret Thatcher and Ronald Reagan, the book finds that there is no purely monetary cure for inflation; rather, monetary and fiscal policies must be coordinated. This fully expanded edition includes the author's 2011 Nobel lecture, “United States Then, Europe Now.” It also features new articles on the macroeconomics of the French Revolution and government budget deficits.
Vinod Venkatraman, John W. Payne, and Scott A. Huettel
- Published in print:
- 2011
- Published Online:
- May 2011
- ISBN:
- 9780199600434
- eISBN:
- 9780191725623
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199600434.003.0007
- Subject:
- Psychology, Cognitive Psychology, Developmental Psychology
We make a variety of decisions throughout our lives. Some decisions involve outcomes whose values can be readily compared, especially when those outcomes are simple, immediate, and familiar. Other ...
More
We make a variety of decisions throughout our lives. Some decisions involve outcomes whose values can be readily compared, especially when those outcomes are simple, immediate, and familiar. Other decisions involve imperfect knowledge about their potential consequences. Understanding the choice process when consequences are uncertain — often called the study of decision making under risk — remains a key goal of behavioural economics, cognitive psychology, and now neuroscience. An ongoing challenge, however, lies in the substantial individual differences in how people approach risky decisions. Using a novel choice paradigm, this chapter demonstrates that people vary in whether they adopt compensatory rules (i.e., tradeoffs between decision variables) or non-compensatory rules (i.e., a simplification of the choice problem) in economic decision making. The chapter shows that distinct neural mechanisms support variability in choices and variability in strategic preferences. Specifically, compensatory choices are associated with activation in the anterior insula and the ventromedial prefrontal cortex, while non-compensatory choices are associated with increased activation in the dorsolateral prefrontal cortex and the posterior parietal cortex. The dorsomedial prefrontal cortex shaped decision making at a strategic level through its functional connectivity with these regions. Individual-difference analyses are a key direction through which neuroscience can influence models of choice behaviour.Less
We make a variety of decisions throughout our lives. Some decisions involve outcomes whose values can be readily compared, especially when those outcomes are simple, immediate, and familiar. Other decisions involve imperfect knowledge about their potential consequences. Understanding the choice process when consequences are uncertain — often called the study of decision making under risk — remains a key goal of behavioural economics, cognitive psychology, and now neuroscience. An ongoing challenge, however, lies in the substantial individual differences in how people approach risky decisions. Using a novel choice paradigm, this chapter demonstrates that people vary in whether they adopt compensatory rules (i.e., tradeoffs between decision variables) or non-compensatory rules (i.e., a simplification of the choice problem) in economic decision making. The chapter shows that distinct neural mechanisms support variability in choices and variability in strategic preferences. Specifically, compensatory choices are associated with activation in the anterior insula and the ventromedial prefrontal cortex, while non-compensatory choices are associated with increased activation in the dorsolateral prefrontal cortex and the posterior parietal cortex. The dorsomedial prefrontal cortex shaped decision making at a strategic level through its functional connectivity with these regions. Individual-difference analyses are a key direction through which neuroscience can influence models of choice behaviour.
Bruno De Witte
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199578184
- eISBN:
- 9780191722561
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199578184.003.0009
- Subject:
- Law, Human Rights and Immigration, Public International Law
This chapter explains the approach of the ECJ to the use of human rights principles in the application and interpretation of economic Community law. This question arises in three different ...
More
This chapter explains the approach of the ECJ to the use of human rights principles in the application and interpretation of economic Community law. This question arises in three different constellations: when the Court is called to examine economic regulation by the European Union legislator in the light of fundamental rights; when the Court is called to examine economic regulation by the member states in the light of fundamental rights; and when the Court examines private interference with economic activities in the light of fundamental rights. The chapter examines these three constellations in turn, giving each time one or more examples of how the ECJ operates. The latter two situations are those that are most directly related to the core theme of the volume, namely human rights issues arising in investment disputes.Less
This chapter explains the approach of the ECJ to the use of human rights principles in the application and interpretation of economic Community law. This question arises in three different constellations: when the Court is called to examine economic regulation by the European Union legislator in the light of fundamental rights; when the Court is called to examine economic regulation by the member states in the light of fundamental rights; and when the Court examines private interference with economic activities in the light of fundamental rights. The chapter examines these three constellations in turn, giving each time one or more examples of how the ECJ operates. The latter two situations are those that are most directly related to the core theme of the volume, namely human rights issues arising in investment disputes.
Jose Harris (ed.)
- Published in print:
- 2003
- Published Online:
- January 2010
- ISBN:
- 9780199260201
- eISBN:
- 9780191717352
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199260201.001.0001
- Subject:
- History, British and Irish Modern History, Economic History
This book explores the many different strands in the language of civil society from the 16th to the 20th centuries. Through a series of case-studies it investigates the applicability of the term to a ...
More
This book explores the many different strands in the language of civil society from the 16th to the 20th centuries. Through a series of case-studies it investigates the applicability of the term to a wide range of historical settings. These include ‘state interference’, voluntary associations, economic decision-making, social and economic planning, the ‘bourgeois public sphere’, civil society in wartime, the ‘inclusion’ and ‘exclusion’ of women, and relations between the state, the voluntary sector, and individual citizens. The contributions suggest that the sharp distinction between civil society and the state, common in much continental thought, was of only limited application in a British context. They show how past understandings of the term were often very different from (even in some respects the exact opposite of) those held today, arguing that it makes more sense to understand civil society as a phenomenon that varies between different cultures and periods, rather than a universally applicable set of principles and procedures.Less
This book explores the many different strands in the language of civil society from the 16th to the 20th centuries. Through a series of case-studies it investigates the applicability of the term to a wide range of historical settings. These include ‘state interference’, voluntary associations, economic decision-making, social and economic planning, the ‘bourgeois public sphere’, civil society in wartime, the ‘inclusion’ and ‘exclusion’ of women, and relations between the state, the voluntary sector, and individual citizens. The contributions suggest that the sharp distinction between civil society and the state, common in much continental thought, was of only limited application in a British context. They show how past understandings of the term were often very different from (even in some respects the exact opposite of) those held today, arguing that it makes more sense to understand civil society as a phenomenon that varies between different cultures and periods, rather than a universally applicable set of principles and procedures.
Miklos Sarvary
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262016940
- eISBN:
- 9780262301176
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016940.001.0001
- Subject:
- Business and Management, Knowledge Management
We live in an “Information Age” of overabundant data and lightning-fast transmission. Yet although information and knowledge represent key factors in most economic decisions, we often forget that ...
More
We live in an “Information Age” of overabundant data and lightning-fast transmission. Yet although information and knowledge represent key factors in most economic decisions, we often forget that data, information, and knowledge are products created and traded within the knowledge economy. This book describes the information industry—the far-flung universe of companies whose core business is to sell information to decision makers. These companies include such long-established firms as Thomson Reuters (which began in 1850 with carrier pigeons relaying stock market news) as well as newer, dominant players like Google and Facebook. The book highlights the special characteristics of information and knowledge, and analyzes the unusual behaviors of the markets for them. It shows how technology contributes to the spectacular growth of this sector and how new markets for information change our economic environment. Research in economics, business strategy, and marketing has shown that information is different from other goods and services; this is especially true in competitive settings and may result in strange competitive market outcomes. For example, the book points out, unreliable information may be more expensive than reliable information; information sellers may be better off inviting competitors into their market because this may allow them to increase their prices; and competition may lead to increased media bias—but this may benefit consumers who want to discover the truth. The book explores the implications of these and other peculiarities for information buyers and sellers.Less
We live in an “Information Age” of overabundant data and lightning-fast transmission. Yet although information and knowledge represent key factors in most economic decisions, we often forget that data, information, and knowledge are products created and traded within the knowledge economy. This book describes the information industry—the far-flung universe of companies whose core business is to sell information to decision makers. These companies include such long-established firms as Thomson Reuters (which began in 1850 with carrier pigeons relaying stock market news) as well as newer, dominant players like Google and Facebook. The book highlights the special characteristics of information and knowledge, and analyzes the unusual behaviors of the markets for them. It shows how technology contributes to the spectacular growth of this sector and how new markets for information change our economic environment. Research in economics, business strategy, and marketing has shown that information is different from other goods and services; this is especially true in competitive settings and may result in strange competitive market outcomes. For example, the book points out, unreliable information may be more expensive than reliable information; information sellers may be better off inviting competitors into their market because this may allow them to increase their prices; and competition may lead to increased media bias—but this may benefit consumers who want to discover the truth. The book explores the implications of these and other peculiarities for information buyers and sellers.
Armin W. Schulz
- Published in print:
- 2018
- Published Online:
- September 2018
- ISBN:
- 9780262037600
- eISBN:
- 9780262345262
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262037600.003.0008
- Subject:
- Psychology, Cognitive Psychology
A number of scholars argue that human and animal decision making, at least to the extent that it is driven by representational mental states, should be seen to be the result of the application of a ...
More
A number of scholars argue that human and animal decision making, at least to the extent that it is driven by representational mental states, should be seen to be the result of the application of a vast array of highly specialized decision rules. By contrast, other scholars argue that we should see human and animal representational decision making as the result of the application of a handful general principles—such as expected utility maximization—to a number of specific instances. This chapter shows that, using the results of chapters 5 and 6, it becomes possible to move this dispute forwards: the account of the evolution of conative representational decision making defended in chapter 6 together with the account of the evolution of cognitive representational decision making defended in chapter 5, makes clear that both sides of this dispute contain important insights, and that it is possible to put this entire dispute on a clearer and more precise foundation. Specifically, I show that differentially general decision rules are differentially adaptive in different circumstances: certain particular circumstances favor specialized decision making, and certain other circumstances favor more generalist decision making.Less
A number of scholars argue that human and animal decision making, at least to the extent that it is driven by representational mental states, should be seen to be the result of the application of a vast array of highly specialized decision rules. By contrast, other scholars argue that we should see human and animal representational decision making as the result of the application of a handful general principles—such as expected utility maximization—to a number of specific instances. This chapter shows that, using the results of chapters 5 and 6, it becomes possible to move this dispute forwards: the account of the evolution of conative representational decision making defended in chapter 6 together with the account of the evolution of cognitive representational decision making defended in chapter 5, makes clear that both sides of this dispute contain important insights, and that it is possible to put this entire dispute on a clearer and more precise foundation. Specifically, I show that differentially general decision rules are differentially adaptive in different circumstances: certain particular circumstances favor specialized decision making, and certain other circumstances favor more generalist decision making.
Rajna Gibson, Carmen Tanner, and Alexander F. Wagner
- Published in print:
- 2015
- Published Online:
- December 2015
- ISBN:
- 9780198716600
- eISBN:
- 9780191807572
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198716600.003.0011
- Subject:
- Psychology, Social Psychology, Developmental Psychology
This chapter starts by reflecting on the notion of “value” in economics. It then describes how economic decision-making models are framed and examines their moral dimension. The foundations of ...
More
This chapter starts by reflecting on the notion of “value” in economics. It then describes how economic decision-making models are framed and examines their moral dimension. The foundations of traditional economic decision-making models contrast with the emphasis of psychological research on the role of deontological considerations in decision-making. The focus is on a specific deontological value, so called “protected values.” The chapter describes the main characteristics of individuals endowed with protected values in particular when these values focus on honesty, and reviews experimental evidence on the role of protected values for honesty in economic decision-making. Finally, some speculative thoughts are offered on the relevance of research on moral values for business policies, incentive design, and regulation. Also discussed are some open research questions regarding the role of moral values in economic decision-making.Less
This chapter starts by reflecting on the notion of “value” in economics. It then describes how economic decision-making models are framed and examines their moral dimension. The foundations of traditional economic decision-making models contrast with the emphasis of psychological research on the role of deontological considerations in decision-making. The focus is on a specific deontological value, so called “protected values.” The chapter describes the main characteristics of individuals endowed with protected values in particular when these values focus on honesty, and reviews experimental evidence on the role of protected values for honesty in economic decision-making. Finally, some speculative thoughts are offered on the relevance of research on moral values for business policies, incentive design, and regulation. Also discussed are some open research questions regarding the role of moral values in economic decision-making.
Reza Shadmehr and Sandro Mussa-Ivaldi
- Published in print:
- 2012
- Published Online:
- August 2013
- ISBN:
- 9780262016964
- eISBN:
- 9780262301282
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016964.001.0001
- Subject:
- Neuroscience, Research and Theory
This book presents a theoretical framework for understanding the regularity of the brain’s perceptions, its reactions to sensory stimuli, and its control of movements. The book offers an account of ...
More
This book presents a theoretical framework for understanding the regularity of the brain’s perceptions, its reactions to sensory stimuli, and its control of movements. The book offers an account of perception as the combination of prediction and observation: the brain builds internal models that describe what should happen and then combines this prediction with reports from the sensory system to form a belief. Considering the brain’s control of movements, and variations despite biomechanical similarities among old and young, healthy and unhealthy, and humans and other animals, chapters review evidence suggesting that motor commands reflect an economic decision made by our brain weighing reward and effort. This evidence also suggests that the brain prefers to receive a reward sooner than later, devaluing or discounting reward with the passage of time; then as the value of the expected reward changes in the brain with the passing of time (because of development, disease, or evolution), the shape of the movements will also change. The internal models formed by the brain provide it with an essential survival skill: the ability to predict based on past observations. The formal concepts presented by the authors offer a way to describe how representations are formed, what structure they have, and how the theoretical concepts can be tested.Less
This book presents a theoretical framework for understanding the regularity of the brain’s perceptions, its reactions to sensory stimuli, and its control of movements. The book offers an account of perception as the combination of prediction and observation: the brain builds internal models that describe what should happen and then combines this prediction with reports from the sensory system to form a belief. Considering the brain’s control of movements, and variations despite biomechanical similarities among old and young, healthy and unhealthy, and humans and other animals, chapters review evidence suggesting that motor commands reflect an economic decision made by our brain weighing reward and effort. This evidence also suggests that the brain prefers to receive a reward sooner than later, devaluing or discounting reward with the passage of time; then as the value of the expected reward changes in the brain with the passing of time (because of development, disease, or evolution), the shape of the movements will also change. The internal models formed by the brain provide it with an essential survival skill: the ability to predict based on past observations. The formal concepts presented by the authors offer a way to describe how representations are formed, what structure they have, and how the theoretical concepts can be tested.
Katherine Verdery
- Published in print:
- 1991
- Published Online:
- May 2012
- ISBN:
- 9780520072169
- eISBN:
- 9780520917286
- Item type:
- chapter
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520072169.003.0004
- Subject:
- Anthropology, European Cultural Anthropology
This chapter illustrates the suppression and reassertion of national values in socialist Romania. The Romania of the late 1970s and 1980s provides a classic example of a breed that was becoming rare ...
More
This chapter illustrates the suppression and reassertion of national values in socialist Romania. The Romania of the late 1970s and 1980s provides a classic example of a breed that was becoming rare during those years: a neo-Stalinist, highly centralized command economy conforming well to the bureaucratic allocative model. Almost none of the expanded market forces, decentralized economic decision making, or political pluralism emerging in Hungary, Poland, or the Soviet Union graced the Romanian landscape. The state persecuted independent entrepreneurship, increasingly raided peasants' “private” plots, militarized many enterprises so as to check sliding output, placed economic contracts under supervision by the General Prosecutor's Office, and chipped away at all enterprises' funds for paying workers. In addition to its unusually high centralization, Romania was unusual within the bloc for its mode of control. In its early days the Romanian regime controlled its population chiefly by force, which was later relaxed and briefly supplemented in the 1960s with a few economic incentives.Less
This chapter illustrates the suppression and reassertion of national values in socialist Romania. The Romania of the late 1970s and 1980s provides a classic example of a breed that was becoming rare during those years: a neo-Stalinist, highly centralized command economy conforming well to the bureaucratic allocative model. Almost none of the expanded market forces, decentralized economic decision making, or political pluralism emerging in Hungary, Poland, or the Soviet Union graced the Romanian landscape. The state persecuted independent entrepreneurship, increasingly raided peasants' “private” plots, militarized many enterprises so as to check sliding output, placed economic contracts under supervision by the General Prosecutor's Office, and chipped away at all enterprises' funds for paying workers. In addition to its unusually high centralization, Romania was unusual within the bloc for its mode of control. In its early days the Romanian regime controlled its population chiefly by force, which was later relaxed and briefly supplemented in the 1960s with a few economic incentives.
David A. Wise (ed.)
- Published in print:
- 2011
- Published Online:
- February 2013
- ISBN:
- 9780226903378
- eISBN:
- 9780226903385
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226903385.001.0001
- Subject:
- Economics and Finance, Public and Welfare
The next two decades will mark a new phase in the demographic transition of the United States as baby boomers become eligible for Social Security and Medicare. Drawing on evidence from the United ...
More
The next two decades will mark a new phase in the demographic transition of the United States as baby boomers become eligible for Social Security and Medicare. Drawing on evidence from the United States and other nations, this book yields important new findings on how economic decisions by households and policy choices by governments will influence the effects of this demographic shift. It explores topics such as the implications of differential mortality rates by income on Social Security, the link between cognition and economic outcomes, and scale variations in self-reported work disability.Less
The next two decades will mark a new phase in the demographic transition of the United States as baby boomers become eligible for Social Security and Medicare. Drawing on evidence from the United States and other nations, this book yields important new findings on how economic decisions by households and policy choices by governments will influence the effects of this demographic shift. It explores topics such as the implications of differential mortality rates by income on Social Security, the link between cognition and economic outcomes, and scale variations in self-reported work disability.
Ben S. Bernanke
- Published in print:
- 2014
- Published Online:
- May 2015
- ISBN:
- 9780226121338
- eISBN:
- 9780226121475
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226121475.003.0002
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Ben Bernanke’s opening remarks reflect on the importance of measurement in economic decision-making. The ultimate purpose of economics is to promote wellbeing, and variables in economic policy making ...
More
Ben Bernanke’s opening remarks reflect on the importance of measurement in economic decision-making. The ultimate purpose of economics is to promote wellbeing, and variables in economic policy making must therefore include determinants of wellbeing, including those that go beyond aggregate statistics which can obscure individual experiences. Increasing the attention paid to microeconomic data could better capture the diversity of experience across households and firms. The measurement of life satisfaction or wellbeing as a direction for economic policy research has generated alternative measures of well-being that are frequently survey-based and incorporate elements such as psychological wellness, the level of education, physical health and safety, community vitality and the strength of family and social ties, and time spent in leisure activities.Less
Ben Bernanke’s opening remarks reflect on the importance of measurement in economic decision-making. The ultimate purpose of economics is to promote wellbeing, and variables in economic policy making must therefore include determinants of wellbeing, including those that go beyond aggregate statistics which can obscure individual experiences. Increasing the attention paid to microeconomic data could better capture the diversity of experience across households and firms. The measurement of life satisfaction or wellbeing as a direction for economic policy research has generated alternative measures of well-being that are frequently survey-based and incorporate elements such as psychological wellness, the level of education, physical health and safety, community vitality and the strength of family and social ties, and time spent in leisure activities.
Luigi Guiso
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9780262035651
- eISBN:
- 9780262337915
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262035651.003.0006
- Subject:
- Economics and Finance, History of Economic Thought
Research on trust has been one of the most fertile areas over the past decade. It has involved contributions not only from all social science but also from biology and neuroscience. In this chapter I ...
More
Research on trust has been one of the most fertile areas over the past decade. It has involved contributions not only from all social science but also from biology and neuroscience. In this chapter I will focus on the economics approach to trust. Despite the pervasive role trust plays in contracting, economists have not been the first to notice the key role of trust for the functioning of an economy. But they have been the first to show its empirical importance for explaining the macroeconomic differences in aggregate performance across countries and communities. In this essay we focus on the microeconomics of trust and elucidate how is trust formed and evolves at the individual level and how it affects individual economic decisions and performance.Less
Research on trust has been one of the most fertile areas over the past decade. It has involved contributions not only from all social science but also from biology and neuroscience. In this chapter I will focus on the economics approach to trust. Despite the pervasive role trust plays in contracting, economists have not been the first to notice the key role of trust for the functioning of an economy. But they have been the first to show its empirical importance for explaining the macroeconomic differences in aggregate performance across countries and communities. In this essay we focus on the microeconomics of trust and elucidate how is trust formed and evolves at the individual level and how it affects individual economic decisions and performance.
Jens Beckert and Richard Bronk (eds)
- Published in print:
- 2018
- Published Online:
- August 2018
- ISBN:
- 9780198820802
- eISBN:
- 9780191860430
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198820802.001.0001
- Subject:
- Business and Management, Political Economy
Uncertain Futures considers how economic actors visualize the future and decide how to act in conditions of radical uncertainty. It starts from the premise that since dynamic capitalist economies are ...
More
Uncertain Futures considers how economic actors visualize the future and decide how to act in conditions of radical uncertainty. It starts from the premise that since dynamic capitalist economies are characterized by relentless innovation and novelty, they exhibit an indeterminacy that cannot be reduced to measurable risk. The organizing question then becomes how economic actors form expectations and make decisions despite the uncertainty they face. The current microfoundations of standard economics cannot handle genuinely uncertain futures. Instead, uncertainty requires an entirely new model of economic reasoning. This edited volume helps lay foundations for this new model by showing how economic actors in practice form expectations in conditions of uncertainty. It draws on groundbreaking research in economic sociology, economics, anthropology, and psychology to present theoretically grounded empirical case studies that demonstrate the role of imaginaries, narratives, and calculative technologies—and their various combinations—in enabling economic actors to form expectations and cope with uncertain futures. The book examines risk management techniques, finance models, and discounted cash-flow models as well as methods of envisaging the future that overtly combine calculation with narrative structure and imaginaries. These include central bank forward guidance, economic forecasts, business plans, visions of technological futures, and new era stories. Considerable attention is given to how these fictional expectations influence actors’ behaviour, coordinate action, and provide the confidence to act, and how they become instruments of power in markets and societies. The market impact of shared calculative devices, social narratives, and contingent imaginaries underlines the rationale for a new form of narrative economics.Less
Uncertain Futures considers how economic actors visualize the future and decide how to act in conditions of radical uncertainty. It starts from the premise that since dynamic capitalist economies are characterized by relentless innovation and novelty, they exhibit an indeterminacy that cannot be reduced to measurable risk. The organizing question then becomes how economic actors form expectations and make decisions despite the uncertainty they face. The current microfoundations of standard economics cannot handle genuinely uncertain futures. Instead, uncertainty requires an entirely new model of economic reasoning. This edited volume helps lay foundations for this new model by showing how economic actors in practice form expectations in conditions of uncertainty. It draws on groundbreaking research in economic sociology, economics, anthropology, and psychology to present theoretically grounded empirical case studies that demonstrate the role of imaginaries, narratives, and calculative technologies—and their various combinations—in enabling economic actors to form expectations and cope with uncertain futures. The book examines risk management techniques, finance models, and discounted cash-flow models as well as methods of envisaging the future that overtly combine calculation with narrative structure and imaginaries. These include central bank forward guidance, economic forecasts, business plans, visions of technological futures, and new era stories. Considerable attention is given to how these fictional expectations influence actors’ behaviour, coordinate action, and provide the confidence to act, and how they become instruments of power in markets and societies. The market impact of shared calculative devices, social narratives, and contingent imaginaries underlines the rationale for a new form of narrative economics.
Assaf Razin, Efraim Sadka, and Benjarong Suwankiri
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262016100
- eISBN:
- 9780262298377
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016100.003.0005
- Subject:
- Political Science, Political Economy
This chapter combines the political economy of the pay-as-you-go (PAYG) social security systems and the political economy of migration to examine the interplay of migration and intergenerational ...
More
This chapter combines the political economy of the pay-as-you-go (PAYG) social security systems and the political economy of migration to examine the interplay of migration and intergenerational distribution policy. The analysis is based on interactions between political and economic decisions under an analytical framework. To simplify matters, the analysis assumes that factor prices are externally fixed. It reveals that factor prices can rise as an equilibrium outcome through international capital movement and constant returns-to-scale production technology. The analysis assumes that migrants contribute to or benefit from such a social security system in the same manner as the native-born workforce, and also assumes that the social security system is the PAYG type, where benefits are equal to contributions.Less
This chapter combines the political economy of the pay-as-you-go (PAYG) social security systems and the political economy of migration to examine the interplay of migration and intergenerational distribution policy. The analysis is based on interactions between political and economic decisions under an analytical framework. To simplify matters, the analysis assumes that factor prices are externally fixed. It reveals that factor prices can rise as an equilibrium outcome through international capital movement and constant returns-to-scale production technology. The analysis assumes that migrants contribute to or benefit from such a social security system in the same manner as the native-born workforce, and also assumes that the social security system is the PAYG type, where benefits are equal to contributions.
Dieter Helm
- Published in print:
- 2012
- Published Online:
- October 2013
- ISBN:
- 9780300186598
- eISBN:
- 9780300188646
- Item type:
- chapter
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300186598.003.0001
- Subject:
- Environmental Science, Environmental Studies
This chapter explains the current environmental challenges to carbon emissions. Such emissions have resulted in drastic climatic changes leading to terrible consequences. World leaders confronted ...
More
This chapter explains the current environmental challenges to carbon emissions. Such emissions have resulted in drastic climatic changes leading to terrible consequences. World leaders confronted climate change in the early 1990s, and two decades ago signed the UN Framework Convention on Climate Change. Despite innumerable conferences, summits, proclamations, agreements, and policy interventions, nothing much has so far been achieved, and indeed some of the interventions may have made things worse. Understanding why climate change matters, what causes it, who is responsible, and why so little progress has been made is a necessary exercise because it reveals the underlying raw nature of the problems faced in the early twenty-first century. The problem of carbon emissions will not get addressed unless carbon is integrated directly into economies and economic decision-making.Less
This chapter explains the current environmental challenges to carbon emissions. Such emissions have resulted in drastic climatic changes leading to terrible consequences. World leaders confronted climate change in the early 1990s, and two decades ago signed the UN Framework Convention on Climate Change. Despite innumerable conferences, summits, proclamations, agreements, and policy interventions, nothing much has so far been achieved, and indeed some of the interventions may have made things worse. Understanding why climate change matters, what causes it, who is responsible, and why so little progress has been made is a necessary exercise because it reveals the underlying raw nature of the problems faced in the early twenty-first century. The problem of carbon emissions will not get addressed unless carbon is integrated directly into economies and economic decision-making.
Richard E. Passingham and James B. Rowe
- Published in print:
- 2015
- Published Online:
- November 2015
- ISBN:
- 9780198709138
- eISBN:
- 9780191815270
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198709138.003.0008
- Subject:
- Neuroscience, Behavioral Neuroscience, Development
The motivation for an imaging study should be better than simply “little is known about the neural basis of X.” As in other areas of science, interest should be in phenomena that are in need of ...
More
The motivation for an imaging study should be better than simply “little is known about the neural basis of X.” As in other areas of science, interest should be in phenomena that are in need of explanation. These could concern normal cognition, for example that it is difficult to carry out two tasks at the same time; or abnormal cognition, for example that there are patients who hear voices. Answering questions such as these can require a combination of methods, which can be best achieved by collaboration between scientists who are experts in different methods. With the maturation of brain imaging, users should think of themselves not as “imagers” but as neuroscientists.Less
The motivation for an imaging study should be better than simply “little is known about the neural basis of X.” As in other areas of science, interest should be in phenomena that are in need of explanation. These could concern normal cognition, for example that it is difficult to carry out two tasks at the same time; or abnormal cognition, for example that there are patients who hear voices. Answering questions such as these can require a combination of methods, which can be best achieved by collaboration between scientists who are experts in different methods. With the maturation of brain imaging, users should think of themselves not as “imagers” but as neuroscientists.
Vladas Griskevicius, Jeffry A. Simpson, Kristina M. Durante, John S. Kim, and Stephanie M. Cantu
- Published in print:
- 2012
- Published Online:
- March 2015
- ISBN:
- 9780199743056
- eISBN:
- 9780190255916
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199743056.003.0008
- Subject:
- Psychology, Social Psychology
This chapter examines how sex ratios—a central concept in evolution—influence human behavior ranging from economic decisions to career choices. Drawing on Robert Cialdini's principles of influence, ...
More
This chapter examines how sex ratios—a central concept in evolution—influence human behavior ranging from economic decisions to career choices. Drawing on Robert Cialdini's principles of influence, it considers how behavior is influenced when there is a “scarcity” of men or women. It also discusses the relationship between psychology and physiology, with emphasis on possible hormonal mechanisms that might regulate behaviors governed by sex ratio differences. Finally, it explores the implications of the scarcity of men and women for social influence.Less
This chapter examines how sex ratios—a central concept in evolution—influence human behavior ranging from economic decisions to career choices. Drawing on Robert Cialdini's principles of influence, it considers how behavior is influenced when there is a “scarcity” of men or women. It also discusses the relationship between psychology and physiology, with emphasis on possible hormonal mechanisms that might regulate behaviors governed by sex ratio differences. Finally, it explores the implications of the scarcity of men and women for social influence.
Seth Berkley
- Published in print:
- 2016
- Published Online:
- October 2016
- ISBN:
- 9780190604882
- eISBN:
- 9780190604912
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190604882.003.0010
- Subject:
- Public Health and Epidemiology, Epidemiology, Public Health
In chapter 10, Seth Berkley assesses the effectiveness of Gavi in substantially declining rates of diphtheria, pertussis, and tetanus; facilitating the development of an inexpensive vaccine for ...
More
In chapter 10, Seth Berkley assesses the effectiveness of Gavi in substantially declining rates of diphtheria, pertussis, and tetanus; facilitating the development of an inexpensive vaccine for meningitis A; expanding access to human papillomavirus vaccine; facilitating the transition of recipient countries to donor countries; and providing an economic and decision-making model that brings together the entire field of vaccinology. The chapter broadens the scope through which the social impact of vaccines is viewed to include the full range of public health threats vaccines combat, the substantial contribution vaccines play in alleviating the most severe forms of poverty around the world, and the role of routine immunization programs as the foundation of national primary healthcare and public health systems. The chapter also outlines specific development, delivery, and financing mechanisms that may facilitate the achievement of access to new and underused vaccines for children living in the world’s poorest countries.Less
In chapter 10, Seth Berkley assesses the effectiveness of Gavi in substantially declining rates of diphtheria, pertussis, and tetanus; facilitating the development of an inexpensive vaccine for meningitis A; expanding access to human papillomavirus vaccine; facilitating the transition of recipient countries to donor countries; and providing an economic and decision-making model that brings together the entire field of vaccinology. The chapter broadens the scope through which the social impact of vaccines is viewed to include the full range of public health threats vaccines combat, the substantial contribution vaccines play in alleviating the most severe forms of poverty around the world, and the role of routine immunization programs as the foundation of national primary healthcare and public health systems. The chapter also outlines specific development, delivery, and financing mechanisms that may facilitate the achievement of access to new and underused vaccines for children living in the world’s poorest countries.
