Belief Systems and Confirmation Bias

2021 ◽  
pp. 101-114
Author(s):  
John N. Drobak
Keyword(s):  
Government Regulation ◽  
Institutional Economics ◽  
Belief Systems ◽  
Confirmation Bias ◽  
New Institutional Economics ◽  
Prior Beliefs ◽  
Political Views ◽  
The World ◽  
The Government ◽  
The Relationship

Chapter 8 uses lessons from the new institutional economics and the concepts of confirmation bias and belief systems to explain why so many people are reluctant to change their views about the U.S. markets and about the desirability of additional government regulation. The chapter begins by describing the development of belief systems, the filter through which people see the world. It explains how people create mental models of the world to simplify things and how people use heuristics and rules of thumb to help make decisions. Once people develop their views of how the world works, confirmation bias makes it difficult to change them. People have a tendency to pay attention to the information that reinforces their prior beliefs and to disregard information that challenges them. In addition, the vast majority of people have much more to think about than the relationship between the market and the government, so they do not pay much attention to details. The chapter uses studies about the rigidity of political views as an example to show the difficulty in changing the public’s acceptance of the harm done to workers by mergers and outsourcing.

Introduction

2021 ◽  
pp. 1-14
Author(s):  
John N. Drobak
Keyword(s):  
United States ◽  
Government Regulation ◽  
Institutional Economics ◽  
The United States ◽  
New Institutional Economics ◽  
Market Regulation ◽  
The Great Recession ◽  
Individual Mandate ◽  
The Government ◽  
The Individual

Chapter 1 explains that this book examines two economic “principles,” or beliefs, that have shaped the perception of the economic system in the United States today: (1) the belief that the U.S. economy is competitive, making government market regulation unnecessary, and (2) the belief that corporations exist for the benefit of their shareholders, but not for other stakeholders. Contrary to what many economists and policymakers believe, the chapter shows that numerous markets in the United States are not competitive and that the belief in shareholder primacy is not an economic principle but a normative notion. In addition, the belief in the existence of competitive markets is used to argue that market regulation is unnecessary because competition provides all the needed constraints. If there are no constraints from competition and no regulation, serious harm can result, as shown by the Great Recession of 2008. The chapter also points out that there never was a purely laissez-faire market economy. The real question is how much market regulation is desirable. It is often difficult to debate this issue because many people label any expansion of government regulation as socialism. In addition, some people just do not like being told what to do by the government. That was a principle reason for the objection to the individual mandate in the Affordable Care Act. The chapter then introduces the relationship between the two economic narratives and the millions of job losses this century, using lessons from the new institutional economics to analyze the issues.

scholarly journals A Christian Response to the Conflicting Relationship Between Slave and Master in A Christian Household

Scrinium ◽  
2018 ◽  
Vol 14 (1) ◽  
pp. 25-36
Author(s):  
Alex Hon Ho Ip
Keyword(s):  
Institutional Economics ◽  
Core Values ◽  
New Institutional Economics ◽  
Practical Concern ◽  
Theological Perspective ◽  
The Relationship ◽  
Different Levels

Abstract This paper seeks to investigate Paul’s response – based on his theological thoughts on love – on the conflicting relationship between Christian master and slave. With the aid of New Institutional Economics (NIE), two major characteristics of the relationship between a master and slave will be explained, namely objectifying and manipulating the relationship. Then, this paper will try to read Paul’s response to the conflicting relationship in the letter to Philemon – how he used different rhetoric to persuade Philemon to change his relationship with his slave in different levels, namely, theological perspective, core values and practical concern.

scholarly journals The Impact of Trust in Government on Tax Paying Behavior of Nonfarm Sole Proprietors

2014 ◽  
Vol 61 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Liucija Birskyte
Keyword(s):  
Government Regulation ◽  
Positive Impact ◽  
Tax Compliance ◽  
Trust In Government ◽  
National Elections ◽  
Income Reporting ◽  
The Government ◽  
Tax Payments ◽  
The Impact ◽  
The Relationship

Abstract The paper explores the relationship between the taxpayers’ trust in government and their willingness to pay taxes. When honored, trust promotes feelings of goodwill between individuals, strengthens democracy, and reduces transaction costs in economic exchange. Literature on government regulation finds that if citizens trust the government they are more likely to comply with laws and regulations. In this article, the index of trust in government calculated by the American National Elections Studies (ANES) and the AGI (adjusted gross income) gap produced by the Department of Commerce’s Bureau of Economic Analysis (BEA) are used to test an empirical model if trust in government has a positive impact on tax compliance of the least compliant taxpayers group - nonfarm sole proprietors - controlling for the deterrent effects of tax enforcement. The results indicate that the higher trust in government improves tax compliance. The paper contributes to the existing literature on tax compliance by combining survey and statistical income reporting data to find evidence that perceptions about the trust in the government translate into actual tax payments

scholarly journals The Control of The Kadi and The Muhtesib on The Urban Guilds in The Ottoman Empire

2018 ◽  
Vol 12 (2) ◽  
pp. 219-247
Author(s):  
Mohammad Hefni
Keyword(s):  
Ottoman Empire ◽  
The State ◽  
Urban Life ◽  
Economic Activities ◽  
Greco Roman ◽  
The World ◽  
History Of ◽  
The Government ◽  
Craft Guilds ◽  
The Relationship

Success of the Ottoman empire as one of the greatest, most extensive, and longest-lasting empires in the history of the world could not be released from the efforts of the government to organize the state throught establishment various institutions. Among them are judicials instititution such as kadi courts and Hisbah institutions which was led by a muhtesib. Therefore, this paper discusses the relationship and the interaction between the kadi and the muhtesib in the Ottoman empire, and their historical roots in the periods before. The position of a kadi and a muhesib has existed in periods before the Ottoman empire. A kadi has existed since the Prophet Muhammad pbuh period. While, a muhtesib historically has began in the Greco-Roman agoranomos. In the Ottoman empire, both became important governmental functions. They had the power to pronounce decisions on everything connected with the sharî'a and the Sultanic law. They played roles in controlling urban life, its economic activities in particular. All the production and manufacturing activities in the cities that were carried out within the framework of the guild organization was under the control of the kadi and the muhtesib. For example a craft guilds and a creditor guilds.  

scholarly journals THE STATE'S RESPONSIBILITY IN THE WELFARE OF PEOPLE AND ECONOMIC RECOVERY IN THE FACE OF COVID-19 FROM THE PERSPECTIVE OF LAW AND HUMAN RIGHTS

1970 ◽  
Vol 21 (2) ◽  
pp. 187-198
Author(s):  
Serlika Aprita ◽  
Lilies Anisah
Keyword(s):  
Human Rights ◽  
Best Practices ◽  
Government Regulation ◽  
Large Scale ◽  
Problem Solver ◽  
The World ◽  
The Face ◽  
The Government ◽  
Almost All ◽  
The Impact

The Covid-19 pandemic was taking place in almost all countries around the world. Along with the increasingly vigorous government strategy in tackling the spread of the corona virus that was still endemic until now, the government had started to enforce the Large-Scale Social Restrictions (PSBB) with the signing of Government Regulation (PP) No. 21 of 2020 about PSBB which was considered able to accelerate countermeasures while preventing the spread of corona that was increasingly widespread in Indonesia. The research method used was normative prescriptive. The government put forward the principle of the state as a problem solver. The government minimized the use of region errors as legitimacy to decentralization. The government should facilitated regional best practices in handling the pandemic. Thus, the pandemic can be handled more effectively. The consideration, the region had special needs which were not always accommodated in national policies. The government policy should be able to encourage the birth of regional innovations in handling the pandemic as a form of fulfilling human rights in the field of health. Innovation was useful in getting around the limitations and differences in the context of each region. In principle, decentralization required positive incentives, not penalties. Therefore, incentive-based central policies were more awaited in handling and minimizing the impact of the pandemic.    

scholarly journals Critical Study Relevance of Act No. 10 of 2016 with Government Regulation No. 151 of 2000

2018 ◽  
Vol 1 (4) ◽  
pp. 881
Author(s):  
Iva Amiroch
Keyword(s):  
Rule Of Law ◽  
Government Regulation ◽  
Critical Study ◽  
Constitutional Court ◽  
Legal Regulations ◽  
Normative Study ◽  
The Rule Of Law ◽  
Critical Studies ◽  
The Government ◽  
The Relationship

Regional Head Elections regulated in Act No. 10 Of 2016 and Government Regulation No. 151 of 2000. So it will be described how the normative study the relationship between the Act No. 10 of 2016 by Government Regulation No. 151 of 2000 and how the relevance of critical studies law OF No. 10 of 2016 with a norm of life in society. Normatively Act 10 of 2016 is higher position with Government Regulation No. 151 of 2000, which is in line with the principle of Lex Superiori Derogat Lex inferiori, namely the rule of law higher can cancel the legal regulations below or lower, in other words lower regulation becomes invalid if it is contrary to a higher rule thereon, it is necessary synchronization between legislation No. 10 of 2016, with the Government Regulation. The problematics arise when there is a Constitutional Court decision No. 42 / PUU-XIII / 2015 annul Article 7, paragraph 2 (g) of the Act No. 10 of 2016, however, the cancellation should also be seen from the law of life in society (Living Law ).Keywords: Regional Head Election; Norms; Law.

scholarly journals Institutions and Entrepreneurship: Pushing the Boundaries

2020 ◽  
Vol 23 (3-4) ◽  
pp. 568-612 ◽  
Author(s):  
Scott Burns ◽  
Caleb Fuller
Keyword(s):  
Economic Growth ◽  
Applied Research ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Austrian Economics ◽  
Institutional Evolution ◽  
Production Processes ◽  
Entrepreneurial Strategies ◽  
The Relationship

New institutional economics (NIE) and Austrian economics (AE) both emphasize the role that institutions play in facilitating or impeding entrepreneurship and hence economic growth. In this paper, we discuss the complementarities between AE and NIE for advancing our understanding of the relationship between institutions and entrepreneurship. We argue that a subjectivist view of institutions, entrepreneurial microfoundations, and capital heterogeneity can enrich our understanding of within-country variation in entrepreneurial strategies, institutional evolution, and the relationship between institutions and production processes. We hope our discussion serves as an invitation both for further theoretical collaboration between the two camps and as a spur to applied research at the intersection of institutions and entrepreneurship.

scholarly journals The relationship between government, market and enterprises in Vietnam

2014 ◽  
Vol 17 (1) ◽  
pp. 16-28
Author(s):  
Dao Thi Thieu Ha
Keyword(s):  
Economic Freedom ◽  
Government Effectiveness ◽  
Clear Cut ◽  
Governance Indicators ◽  
Doing Business ◽  
The World ◽  
Economic Freedom Index ◽  
Ease Of Doing Business ◽  
The Government ◽  
The Relationship

This article analyses the reality relationship among government, market and enterprises in Vietnam in the period of 1996-2012. We find out that: (i) the effectiveness of government indicators such as ease of doing business index, the economic freedom index, the government effectiveness indicators (belong to the governance indicators) improved considerably overtime but have not reached the average level of the world; (ii) the relationship between government and enterprises has not been clear-cut. As a result, though many reforms have been conducted, state owned enterprises still take up a high percentage in many industries and enjoy multiple preferential polices while operate inefficiently. This articles also points out the reasons of the situation and gives some recommendations for solving those problems.

scholarly journals Administrasi hubungan sekolah dan masyarakat (husemas)

2019 ◽  
Author(s):  
Rahma Juita
Keyword(s):  
Shared Responsibility ◽  
Community Relations ◽  
Or Education ◽  
Community Or ◽  
The World ◽  
The Future ◽  
School And Community ◽  
The Government ◽  
The Relationship ◽  
Community Administration

An education is successful not because of one party from the school alone, but the success of an education is also related to the relationship between the school and the government, family and community relations as well. Therefore school or education is a shared responsibility between schools, the community and also the government, in helping those who provide the needs needed by education in the administration of school and community relations. If the parents of students participate in the school, then the school has succeeded in convincing and giving answers to the parents of these students, because so far the parents often think negatively about the school if there is a meeting invitation to the school, they also ask for help with money remove it, and therefore they are reluctant to attend the meeting invitation.Parent participation of students with the school in school and community administration is about empowering the community with the school, the community is very important in the world of education in the future in the administration of school and community relations. How schools can convince the community or the community how to ensure schools can convince the community and the community if you want the school can convince the community and the community, this school can help success in inviting and giving direction and guiding, and also maintaining the school is a shared responsibility between the school and Public.

scholarly journals Pengupahan dalam Sistem Upah Indonesia dan Islam

AL- ADALAH ◽  
2019 ◽  
Vol 15 (2) ◽  
pp. 263
Author(s):  
Ruslan Abdul Ghofur
Keyword(s):  
Economic System ◽  
Minimum Wages ◽  
Main Issue ◽  
Capital Goods ◽  
Employment Agreement ◽  
The World ◽  
City District ◽  
The Government ◽  
The Relationship

The conflict between workers and employers has become a routine phenomenon in the world of labor in Indonesia. From a number of demands that have arisen in each demonstration, the issue of wages has always been the main issue voiced by the workers. The government has actually attempted to mediate this issue by issuing a regulation on Provincial Minimum Wages (UMP) and Minimum Wages for City/District (UMK). The issue of wages, however, always ranks first in the demands of the workers. This article compares the concept of wages in the capitalistic economic system with the concept of wages in Islam. The aim is to get an idea of how each system regulates the relationship between workers and employers. This study finds out that in Islamic economics, wages (ujrah) are product of a system of cooperative help which is manifested in a contract of an employment agreement. Whereas in a capitalistic economic system, labor is more valued as one type of commodity or capital goods that will produce a new value.

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