Expectations and Its Variants: The Nuanced Role of Expectations in Classical Economics

2020 ◽  
pp. 21-51
Author(s):  
Amos Witztum
Keyword(s):  
Classical Economics

Three Ways to Determine the Discount Rate

2012 ◽  
Author(s):  
Christian Gollier
Keyword(s):  
Interest Rate ◽  
Time Preferences ◽  
Classical Economics ◽  
Investment Opportunities ◽  
The Interest Rate ◽  
Period Model ◽  
Consumption Saving ◽  
Competitive Economy

This chapter presents the simple two-period model that is used in classical economics textbooks to examine the problem of consumption, saving, and investment in a competitive economy. This model is a reminder of the key role of the interest rate for the determination of economic growth. Its equilibrium level balances the demand and the supply of liquidity, which are themselves characterized by time preferences and investment opportunities. From a simple arbitrage argument, any new investment opportunity in the economy should be evaluated by using the interest rate as the rate at which the future benefits of the project should be discounted.

Teoria neo-keynesiana e aspettative razionali in economia aperta*

1985 ◽  
Vol 3 (2) ◽  
pp. 109-123
Author(s):  
Enrico Colombatto
Keyword(s):  
Open Economy ◽  
Capital Market ◽  
Rational Expectations ◽  
The Other ◽  
Closed Economy ◽  
Classical Economics ◽  
Other Hand ◽  
Goods Market ◽  
The One

Abstract The introductory paragraph is devoted to the outline of the role of the rational expectations (r.e.) element within the Keynesian, the Monetarist and the New-Classical-Economics framework; in all such cases the closed-economy version only is taken into account.The second part of the article, on the other hand, is devoted to the analysis of an open-economy framework, where the consequences of the r.e. hypothesis are analysed in greater depth. In short, two groups of aspects are stressed: on the one hand, considerable attention is given to the importance and the analysis of the velocity of anticipation and of adjustment, both on the goods market and on the capital market; on the other, the dimensions and the frequence of the eventual distortions which arise in the neo-Keynesian and in the Monetarist cases are examined. The results yielded by the analysis carried out within both groups of aspects are then compared with the results obtained from a New-Classical viewpoint. The role of the alternative classes of expectations - apart from the r. e. case - is taken into account as well.

scholarly journals What I Learnt About How I Learnt About Behavioral Economists

2020 ◽  
Vol 6 ◽  
pp. 391
Author(s):  
Zara Thokozani Kamwendo
Keyword(s):  
Behavioral Economics ◽  
Experimental Methods ◽  
Heuristics And Biases ◽  
Paradigm Shifts ◽  
Policy Makers ◽  
Rhetorical Device ◽  
Work In Progress ◽  
Classical Economics ◽  
Public Imagination

This paper is a discussion of the role of the experimental methods and the dissemination practices of behavioral economists in capturing public imagination. The paper is framed by auto biographical accounts of two episodes in my own exploration of behavioral economics as a topic of study: participating in a MOOC on the basics of behavioral economics and sharing my work in progress to a group of staff and students in Singapore. Drawing on Shapin and Shaffer’s notion of “virtual witnesses” (Shapin and Shaffer 1985) I develop the argument that a consequence of the dissemination practices of the Heuristics and Biases Program is the creation of both “virtual subjects” and “virtual experimenters.” I then give an account of Thaler’s use of rationality and Kuhnian paradigm shifts as a rhetorical device to persuade mainstream economists and policy makers of the value of behavioral economics and to establish the narrative of behavioral economics as critics of neo-classical economics. I argue that the reflexive approach adds to accounts of the success of behavioral economics as a story of persuasive techniques of behavioral economists embedded in their practices of experimentation and dissemination. 

scholarly journals Construction of an Industry Cycle Indicator for Profitability Prediction Analysis of Aggregate Firms in Bangladesh

2020 ◽  
pp. 09-18
Author(s):  
Maria Afreen
Keyword(s):  
Stress Test ◽  
Predictive Performance ◽  
Industrial Sector ◽  
Macroeconomic Fluctuations ◽  
Policy Framework ◽  
Financial Industry ◽  
Classical Economics ◽  
Indicator Model ◽  
Cycle Indicator

Purpose of this study: In the aggregate industrial sector, government intervention to influence demand within the economy is generally counterproductive, while the optimal policy is to concentrate on supply-side reforms that help the economy become efficient. The objective of this study was to construct a unique industry cycle indicator for Bangladeshi aggregate firms within this industrial sector. The specific objectives were to assemble a unique industry cycle indicator which recommends early signals of a firm’s industrial vulnerability, identify industry cycle indicator turning points and evaluate the predictive performance of the industry. The industry cycle indicator model demonstrates the macroeconomic fluctuations in the industrial sector. Methodology: The industry cycle indicator was constructed following the approach of the Conference Board (2000). The result wasthen tested for robustness with a macro-stress test. Lagged independent variables were used in this study to allow early predictions by the ICI for the year in which the financial crisis happened. Main Findings: The industry cycle indicator model underplays the role of aggregate industrial efficiency in influencing the economic cycle. By forecasting directional changes, this leading indicator allows policymakers to be made aware of revolutions in the financial industry and to undertake early precautionary steps to prevent vulnerability. Here, the constructed industry cycle indicator demonstrates a remarkable lead time of around 6 months for predictions and outperforms by the leading against the reference series. Research Limitations/Implications: The industry cycle indicator model rejects the Keynesian approach and also rejects monetarism. It tends to be associated with neo-classical economics. The ICI generally assumes that shocks to productivity lead to economic fluctuations. In other words, a temporary fall in output is an inevitable consequence of a drop in productivity within the industrial sector. It also leads to adjustments to this new equilibrium and enables resources to discover more productive uses. Novelty/Originality: This research demonstrates that enhanced knowledge of components of the macro-prudential policy framework combined with the existence of a certain degree of standardisation of the macro-prudential tools and indicators is essential. This can significantly develop the capability of the financial markets supervisory authorities to forecast systemic risk and to avoid or reduce the consequences of industrial crises. The present study reflects a situation for upcoming researchers who intend to study and develop their interests in this area.

scholarly journals U źródeł leseferyzmu i subiektywizmu myśli Murraya Rothbarda. Arystoteles, Święty Tomasz, hiszpańscy scholastycy, John Locke i Fryderyk Bastiat jako źródła inspiracji

Ekonomia ◽  
2016 ◽  
Vol 22 (3) ◽  
pp. 43-57
Author(s):  
Radosław Wojtyszyn
Keyword(s):  
Economic Activity ◽  
John Locke ◽  
Laws Of Nature ◽  
Human Condition ◽  
Crucial Point ◽  
State Institutions ◽  
Classical Economics ◽  
Laissez Faire ◽  
Specific Influence

Laissez — faire and subjective underpinnigs of Murray Rothbard’s thought. Aristotle, St. Thomas, Spanish scholastics, John Locke and Frederic Bastiat as an inspirationThe subject of this article are origins of the subjectivist view of the economic activity of man, and pre-classic themes of political economy, which are the inspirations for Murray Newton Rothbard and his thought of anarcho-capitalism. These issues, being so rarely subject to scientific interest, are crucial point of reference for classical and neoclassical economics, and laissez-faire in general. Specific influence of natural law on the sphere of economic activity and human condition also implies abroader view of the role of state institutions in the thought of Aristotle, Thomas Aquinas, the scholastics of the Salamanca, John Locke and Frederic Bastiat, who combined the above-mentioned laws of nature and tradition of classical economics with subjectivity, so important in Austrian School of Economics and in anarcho-capitalist thought of Murray Newton Rothbard.

scholarly journals On the Term “Entrepreneur” and the Conceptualization of Entrepreneurship in the Literature of Classical Economics

2017 ◽  
Vol 7 (6) ◽  
pp. 16 ◽  
Author(s):  
Petur O. Jonsson
Keyword(s):  
Current Literature ◽  
Industrial Revolution ◽  
Entrepreneurial Process ◽  
Classical Economics

Some of the literature on entrepreneurship suggests that the term entrepreneur was first introduced by either Cantillon or Say during the industrial revolution in the 18th and early 19th centuries. This article, by contrast, shows the term and the concept to be far older. Moreover, before the introduction of the term entrepreneur into English, the literature had a variety of other, and in some respect more nuanced, terms for entrepreneurs. Moreover, the article suggests that present-day scholars tend to misread both the pre-classical and the classical economists on the role of entrepreneurial initiative and creativity in the economy and that this has affected the conceptualization of the term in the current literature. In particular, Say’s classical presentation of the entrepreneurial process was, in essence, dialectical and thus his ideas on entrepreneurship cannot be presented properly in the context of the modern-day equilibrium based models of today’s economics. 

Role of dactinomycin in the improved survival of children with Wilms' tumor

JAMA ◽  
1966 ◽  
Vol 195 (12) ◽  
pp. 1005-1009 ◽  
Author(s):  
D. J. Fernbach
Keyword(s):  
Wilms Tumor

Role of the allergist in diagnosis and management of patients with uveitis

JAMA ◽  
1966 ◽  
Vol 195 (3) ◽  
pp. 167-172 ◽  
Author(s):  
T. E. Van Metre
Keyword(s):  
Diagnosis And Management

The power of norms to sway fused group members

2018 ◽  
Vol 41 ◽  
Author(s):  
Winnifred R. Louis ◽  
Craig McGarty ◽  
Emma F. Thomas ◽  
Catherine E. Amiot ◽  
Fathali M. Moghaddam
Keyword(s):  
Evolutionary Anthropology ◽  
Normative Systems ◽  
Violent Extremism ◽  
Identity Fusion ◽  
Group Members

AbstractWhitehouse adapts insights from evolutionary anthropology to interpret extreme self-sacrifice through the concept of identity fusion. The model neglects the role of normative systems in shaping behaviors, especially in relation to violent extremism. In peaceful groups, increasing fusion will actually decrease extremism. Groups collectively appraise threats and opportunities, actively debate action options, and rarely choose violence toward self or others.

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