scholarly journals Development of macroeconomic models based on behavioral economics: issues and further research

2021 ◽  
pp. 2-2
Author(s):  
М. Talavyrya ◽  
◽  
B. Dorosh ◽  
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Basic Concept ◽  
Behavioral Models ◽  
Practical Application ◽  
Macroeconomic Models ◽  
The Past ◽  
Behavioral Macroeconomics ◽  
Key Issues ◽  
Central Bankers

The article analyzes the formation, spread and development of behavioral economics in microeconomic research, as well as its development in macroeconomic research over the past two decades. The key shortcomings of neoclassical macroeconomic models and their critique based on existing research and practical application by central bankers are highlighted. The key stages in the formation of behavioral macroeconomics, elements of which began to appear in the works of neoclassical macroeconomists, have been identified. The main arguments in favor of replacing neoclassical macroeconomic models with new behavioral macroeconomic models are presented, as well as key issues of behavioral macroeconomics and prospects for its further adoption as a basic concept for decision-making for governments. Key studies of behavioral economists on behavioral macroeconomic models, most of which are agents-based (microfoundations-based), have been identified and systematized. Based on the results of testing various behavioral models by world-renowned scientists, as well as our analysis, it is proposed to focus further macroeconomic research on behavioral models based on the activities of agents (microfoundations).

Marshmallows and Braking Systems

2021 ◽  
pp. 105-122
Author(s):  
Craig J. Bryan
Keyword(s):  
Decision Making ◽  
Mental Illness ◽  
Suicide Attempt ◽  
Social Influence ◽  
Emotional Distress ◽  
Basic Concept ◽  
Decision Making Process ◽  
The Past ◽  
Internal States ◽  
Decision Making Processes

This chapter argues that suicide can be more usefully understood as a consequence of decision-making processes that are vulnerable to environmental and social influence rather than a consequence of internal states or traits such as mental illness. Mental illness and emotional distress more generally are better understood as one particular context within which the decision to make a suicide attempt or not often presents itself, but this does not mean that mental illness is the only context within which this choice is considered. This also does not mean that mental illness causes suicide. The basic concept involved in the marshmallow experiment—decision-making under different conditions—has received increased attention in the past decade among suicide researchers. Studies reveal that the decision-making process of someone who almost died as a result of a suicide attempt was no different from the decision-making process of someone who had never attempted suicide, was not currently suicidal, and did not have a mental illness. This finding lines up with the idea that there can be multiple pathways to suicide.

Measuring Utility, Destabilizing EUT

2018 ◽  
pp. 261-280
Author(s):  
Ivan Moscati
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Behavioral Models ◽  
Decision Making Under Risk ◽  
Utility Measurement ◽  
Elicitation Methods ◽  
Series Of Experiments

Chapter 16 shows how the validity of expected utility theory (EUT) was increasingly called into question between the mid-1960s and the mid-1970s and discusses how a series of experiments performed from 1974 to 1985 undermined the earlier confidence that EUT makes it possible to measure utility. Beginning in the mid-1960s, in a series of experiments seminal to the field later called behavioral economics, Sarah Lichtenstein, Paul Slovic, Amos Tversky, and others showed that decision patterns violating EUT are systematic. The new experimenters who engaged with the EUT-based measurement of utility from the mid-1970s, namely Uday Karmarkar, Richard de Neufville, Paul Schoemaker, and coauthors, showed that different elicitation methods to measure utility, which according to EUT should produce the same outcome, generate different measures. These findings contributed to destabilizing EUT, undermined the confidence in EUT-based utility measurement, and helped foster a blossoming of novel behavioral models of decision-making under risk.

The Behavioral Economics of Education

2011 ◽  
Vol 40 (9) ◽  
pp. 446-453 ◽  
Author(s):  
Huriya Jabbar
Keyword(s):  
Decision Making ◽  
Education Research ◽  
Behavioral Economics ◽  
Status Quo ◽  
Status Quo Bias ◽  
Disciplinary Boundaries ◽  
The Past ◽  
Psychological Knowledge ◽  
Economics Research ◽  
Research And Policy

Over the past several decades, researchers have used economics to understand a number of issues in education policy. This article argues that some education researchers have defined economics too narrowly, neglecting several areas of economics research that cut across disciplinary boundaries. One subdiscipline of economics that might be of use in education, but which has not been applied much to it, is behavioral economics, which incorporates psychological knowledge about human behavior to enhance and extend economic models of decision making. This article reviews some of the behavioral concepts in economics that are most likely to inform education research and policy—prospect theory, framing effects, status quo bias, paradox of choice, and intrinsic motivation—and suggests directions for further research.

scholarly journals THE BEHAVIORAL ECONOMICS: AN INFLUENCE OF PSYCHOLOGICAL FACTORS ON THE ECONOMIC GROWTH

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 199-206
Author(s):  
Dmitry Vukolov
Keyword(s):  
Economic Growth ◽  
Behavioral Economics ◽  
Aggregate Demand ◽  
Macroeconomic Models ◽  
Economic Agents ◽  
The Past ◽  
Irrational Behavior ◽  
Long Time ◽  
History Of ◽  
Behavioral Mechanisms

Psychology as a branch of science could not take its place in the world for a long time. This fact says about a huge omission of a mass of intelligence by a human. However, the time overtook its own, and psychology became more significant for people and the economy in general. Being a science that would not exist without a human, it is impossible to omit its influence in it. Therefore, the main goal of this work is to consider the influence of behavioral mechanisms on decision-making by economic agents and, as a result, on economic growth. The theoretical part is closely interconnected with the practical part. This explains why the article does not have a clear separation between the two ones. Openings within the frame of behavioral economics embrace both the present and the past, which are aimed at showing both the fundamental nature of this knowledge and its undisputable relevance. These factors together represent a brief history of the development of this branch of knowledge. Through the prism of the main achievements of scientists of different years in the sphere of behavioral economics the irrational behavior of consumers was analyzed. This behavior was reflected in the examples, which showed simultaneously both: the main flaws of the classical macroeconomic models, and the importance of considering behavioral economics when analyzing aggregate demand and aggregate supply.

Behavioral macroeconomics: Towards a newsynthesis?

2016 ◽  
pp. 88-103
Author(s):  
A. Nikiforov ◽  
O. Antipina
Keyword(s):  
Behavioral Economics ◽  
Research Program ◽  
New Keynesian ◽  
Optimization Models ◽  
Macroeconomic Theory ◽  
Macroeconomic Models ◽  
Behavioral Macroeconomics ◽  
New Research

This article overviews the existing possibilities of synthetizing New Keynesian optimization models with the research in behavioral economics. These approaches allow to build empirically adequate macroeconomic models and to expound this framework as a new research program, as a unification of traditional macroeconomic theory and behavioral economics.

scholarly journals Selected Approaches of the Behavioral Economics in Post Pandemic Management

2021 ◽  
Vol 115 ◽  
pp. 03017
Author(s):  
Norbert Súkeník ◽  
Nadežda Jankelová
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Organizational Behavior ◽  
Human Behavior ◽  
Practical Application ◽  
Decision Making Processes ◽  
The Subject ◽  
New Challenges ◽  
Human Thinking ◽  
Psychological Experiments

Changes in organizational behavior, decision-making processes, human thinking and action are the subject of an exploration of the increasingly popular behavioral economy. We assume that her knowledge gained from various economic or psychological experiments in recent decades can help managers understand the specifics of human behavior and action. The Covid crisis and the pitfalls it brings pose new challenges for managers. Knowledge of behavioral economics and descriptive approaches to decision making allows us to understand how people act in real conditions. This knowledge can help managers streamline management and become better leaders. The paper deals with the benefits of behavioral economics for managers in the process of “reopening” the economy and its main goal is to highlight the knowledge and solutions of behavioral economics, usable for postpandemic management. To meet the goal, it is necessary to describe the changes and new specifics of the environment affected by the pandemic crisis in the first, theoretical part of the work. After analyzing these changes and evaluating them, we look for the answers offered by behavioral economics in the final part of the paper. Based on the empirically obtained knowledge of mainly foreign authors, we present several examples of their practical application in the newly created management environment.

scholarly journals OF ALCOHOL, APES, AND TAXES: GÜNTER SCHMÖLDERS AND THE REINVENTION OF ECONOMICS IN BEHAVIORAL TERMS

2021 ◽  
pp. 1-23
Author(s):  
Rüdiger Graf
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Human Beings ◽  
Distinct Entity ◽  
Macroeconomic Models ◽  
Historical School ◽  
Lecture Notes ◽  
German Economist

The article examines an early and idiosyncratic version of behavioral economics or “empirical socio-economics,” which the German economist and taxation expert Günter Schmölders developed in the postwar decades. Relying on both his published papers and his lecture notes and correspondence, it scrutinizes Schmölders’s intellectual upbringing in the tradition of the Historical School of Economics (Historische Schule der Nationalökonomie) and his relation to the emerging ordoliberalism, demonstrating that the roads that led to dissatisfaction with the emerging neoclassical mainstream and the unrealistic behavioral assumptions of macroeconomic models were manifold. Accordingly, it shows that behavioral economics is compatible with various intellectual and political backgrounds and convictions. Yet, it still forms a distinct entity: comparing Schmölders with contemporary and later behavioral economists, I will show that they shared essential methodological assumptions as well as an understanding of human beings as decision-making organisms.

The Role of Behavioral Models in the Ontological Structure of Modern Macroeconomics

2013 ◽  
pp. 98-110
Author(s):  
M. Likhachev
Keyword(s):  
Economic System ◽  
Government Regulation ◽  
Institutional Structure ◽  
Economic Environment ◽  
Behavioral Models ◽  
Macroeconomic Models ◽  
Basic Characteristics ◽  
Practical Implications

Behavioral models are considered in the paper as the link between the description of the institutional structure of the economic system and the formation of macro-aggregates, reflecting the results of its operations. The degree of homogeneity of the private sector’s economic environment and complementary goals of private entities and government regulation are noted as basic characteristics of behavioral models. The author examines the differences in the estimates of these characteristics as one of the most important factors underpinning the architecture of modern macroeconomic models and their practical implications.

Truth Matters: Cognitive Integrity as an Intervention for Self-Deception

2017 ◽  
Author(s):  
Eugenia Isabel Gorlin ◽  
Michael W. Otto
Keyword(s):  
Decision Making ◽  
Problem Solving ◽  
Autonomous Agents ◽  
Therapeutic Interventions ◽  
Empirical Validation ◽  
The Past ◽  
Adaptive Problem

To live well in the present, we take direction from the past. Yet, individuals may engage in a variety of behaviors that distort their past and current circumstances, reducing the likelihood of adaptive problem solving and decision making. In this article, we attend to self-deception as one such class of behaviors. Drawing upon research showing both the maladaptive consequences and self-perpetuating nature of self-deception, we propose that self-deception is an understudied risk and maintaining factor for psychopathology, and we introduce a “cognitive-integrity”-based approach that may hold promise for increasing the reach and effectiveness of our existing therapeutic interventions. Pending empirical validation of this theoretically-informed approach, we posit that patients may become more informed and autonomous agents in their own therapeutic growth by becoming more honest with themselves.

Evidence-based Assessment

2010 ◽  
pp. 76-98
Author(s):  
John Hunsley ◽  
Eric J. Mash
Keyword(s):  
Decision Making ◽  
Clinical Assessment ◽  
Assessment Process ◽  
Evidence Based ◽  
The Past ◽  
Specific Assessment ◽  
The Many ◽  
Selection Of ◽  
Made In

Evidence-based assessment relies on research and theory to inform the selection of constructs to be assessed for a specific assessment purpose, the methods and measures to be used in the assessment, and the manner in which the assessment process unfolds. An evidence-based approach to clinical assessment necessitates the recognition that, even when evidence-based instruments are used, the assessment process is a decision-making task in which hypotheses must be iteratively formulated and tested. In this chapter, we review (a) the progress that has been made in developing an evidence-based approach to clinical assessment in the past decade and (b) the many challenges that lie ahead if clinical assessment is to be truly evidence-based.

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