How Behavioral Economics Can Help When You Think You Don't Have Enough Money

2017 ◽  
pp. 1-16
Author(s):  
Elena Druică ◽  
Rodica Ianole
Keyword(s):  
Behavioral Economics ◽  
Eastern Europe ◽  
Human Behavior ◽  
Position Paper ◽  
Multiple Perspectives ◽  
Human Behaviors ◽  
Healthcare Efficiency ◽  
Communist Countries ◽  
Healthcare Expenses ◽  
Efficiency Indicators

This work is a position paper discussing alternative viewpoints on factors that may influence the values of certain crucial healthcare efficiency indicators. We draw attention to the latest research in the area of behavioral economics, and make obvious certain inefficiencies in base healthcare packages, which are in close connection with human behavior. We begin with an analysis of healthcare expenses, first in absolute terms and then compare them with the Euro zone as well as former communist countries from Eastern Europe. The purpose is to offer multiple perspectives in relation to the widespread idea that medical care in Romania does not have the financial backing enjoyed in other places. We continue with the presentation of several healthcare variables and the attempt to find possible alternative explanations for their values and dynamics. Finally, we sum up with an emphasis on certain human behaviors that might underlie inefficiencies in healthcare packages and examine the corresponding experimental results, which offer some simple solutions to correct them.

How Behavioral Economics Can Help When You Think You Don't Have Enough Money

2018 ◽  
pp. 236-251
Author(s):  
Elena Druică ◽  
Rodica Ianole
Keyword(s):  
Behavioral Economics ◽  
Eastern Europe ◽  
Human Behavior ◽  
Position Paper ◽  
Multiple Perspectives ◽  
Human Behaviors ◽  
Healthcare Efficiency ◽  
Communist Countries ◽  
Healthcare Expenses ◽  
Efficiency Indicators

This work is a position paper discussing alternative viewpoints on factors that may influence the values of certain crucial healthcare efficiency indicators. We draw attention to the latest research in the area of behavioral economics, and make obvious certain inefficiencies in base healthcare packages, which are in close connection with human behavior. We begin with an analysis of healthcare expenses, first in absolute terms and then compare them with the Euro zone as well as former communist countries from Eastern Europe. The purpose is to offer multiple perspectives in relation to the widespread idea that medical care in Romania does not have the financial backing enjoyed in other places. We continue with the presentation of several healthcare variables and the attempt to find possible alternative explanations for their values and dynamics. Finally, we sum up with an emphasis on certain human behaviors that might underlie inefficiencies in healthcare packages and examine the corresponding experimental results, which offer some simple solutions to correct them.

A New Model of Man in Economics

2011 ◽  
pp. 78-98
Author(s):  
M. Storchevoy
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Social Factors ◽  
Rational Behavior ◽  
New Model ◽  
Common Framework

The paper draws on the most recent research in the field of behavioral economics, neuroscience, and other disciplines and shows how biological and social factors interact and co-determine real human behavior. The author considers in detail various affects and forms of non-rational behavior. He proposes a common framework for such analysis, where each of those forms of behavior becomes the result of conscious or evolutionary-driven choice.

Clusterization of post-communist countries of the Central and Eastern Europe by income inequality level

2021 ◽  
Vol 72 (5) ◽  
pp. 41-52
Author(s):  
T. Cherkashyna
Keyword(s):  
Income Inequality ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
National Income ◽  
Analysis Tool ◽  
Tax Rate ◽  
Low Level ◽  
The Third ◽  
High Level ◽  
Communist Countries

Using level of income inequality, the clustering of post-communist countries of the Central and Eastern Europe is carried out by the following indicators: Gini index, share in the national income of the second quintile group, share in the national income of the third quintile group, share in the national income of the fourth quintile group, share in the national income of 10% of the poorest, share in the national income of 20% of the richest.,Сluster analysis (k-means method), in the programming environment Statistica is used as analysis tool and five clusters are obtained. The first cluster includes 8 countries (Albania, Hungary, Poland, Bosnia and Herzegovina, Czech Republic, Сroatia, Russia, Slovakia) is characterized by sufficiently low level of income inequality and can be explained by flow of foreign investment and business transnationalization contributing to the increase of incomes of the main population groups of these countries. The second cluster includes 4 countries (Belarus, Slovenia, Ukraine, Moldova) and is characterized by comparatively low level of income inequality, but high level of property inequality due to heredity, аccumulated wealth та concentration of physical and financial capital by so called «oligarchic clans». The third cluster includes 5 countries (Bulgaria, Montenegro, Macedonia, Romania, Serbia) and is characterized by medium level of income inequality. The fourth and fifth clusters include so called «Baltic tigers» (Latvia, Lihuania, Estonia) and is characterized by high level of income inequality as the result of the occurrence of «excess profits» of financial assets owners. In order to decrease the income inequality in the investigated countries, the following measures are proposed: for the countries of the first cluster to accelerate deconcentration of capital ownership by «spaying» (redemption) of privatized enterprises shares by all categories on preferential terms (so called «ESOP programs»); for the countries of the second cluster to implement progressive tax scale where the tax rate for different groups of population vary depending on the income received and citizens with the lowest incomes (at the level of subsistence minimum or minimum wage) do not pay individual taxes at all; for the countries of the third cluster to cope with «shadow» economy and informal unemployment; for the counties of the fourth and fifth clusters to decrease tax burden on private entrepreneurs and thus stimulate self-employment.

Economics and Epicycles

2020 ◽  
pp. 174569162095378
Author(s):  
Satoshi Kanazawa
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Evolutionary Biology ◽  
Cognitive Biases ◽  
Behavioral Economic ◽  
Nonhuman Animals ◽  
Human Actors ◽  
Economic Studies

I aver that standard economics as a model of human behavior is as incorrect in 2017 (after Thaler) as geocentrism was as a model of celestial behavior in 1617 (after Galileo). Behavioral economic studies that have exposed the paradoxes and anomalies in standard economics are akin to epicycles on geocentrism. Just as no amount of epicycles could salvage geocentrism as a model of celestial behavior because it was fundamentally incorrect, no amount of behavioral economic adjustments could salvage standard economics as a model of human behavior because it is fundamentally incorrect. Many of the cognitive biases exhibited by humans are shared by other species, so not only are human actors Humans (as opposed to Econs), but nonhuman animals as phylogenetically distant from humans as ants and locusts are also Humans. Evolutionary biology as a model of human behavior can explain many of the hitherto unexplained cognitive biases and provide a unifying model of human behavior currently lacking in behavioral economics.

scholarly journals Shortcomings of experimental economics to study human behavior: a reanalysis of Cohn et al. 2014, Nature 516, 86–89, ‘‘Business culture and dishonesty in the banking industry’’

2018 ◽  
Author(s):  
Jean-Michel Hupé
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Business Culture ◽  
Evidence Based ◽  
Modeling And Simulations ◽  
Multiple Selves ◽  
Data Set ◽  
Financial Scandals ◽  
Bank Employees ◽  
Main Message

In the wake of financial scandals, Cohn and collaborators published a headline-grabber study in the field of behavioral economics. M.C. Villeval (2014) summarized the main message as follows, in News and Views of the Nature issue where the Cohn study was published: the “experiment shows that although bank employees behave honestly on average, their dishonesty increases when they make decisions after having been primed to think about their professional identity.” Cohn et al. thus provide evidence that “the incentives and the business culture developed in the financial sector may undermine the honesty norms of ordinary employees.” This study may have important consequences for policy, since, Villeval continues, “it is crucial to ensure a business culture of honesty in this industry to restore trust in it.” Villeval also argues that “from a scientific perspective, this study […] supports the economic theory of social identity […], links this theory with the economic analysis of lying behavior [… and] shows how behavioural economists can contribute to a broader reflection in science about how people manage their 'multiple selves' ”. Here I show that the use of flawed statistics methods, yet employed routinely in so-called “evidence-based” science, led the authors to distort the “evidence”. I am also using this data-set as an interesting example to explore how we can use modeling and simulations to provide a fair account of the information and uncertainty conveyed by the data, based on Confidence Intervals. I provide the R-code. Based on this paper, I question the contribution of behavioral economics to the understanding of human behavior and conclude with considerations on honesty and science.

scholarly journals Backwardness of Central and Eastern Europe as a Heritage of the Soviet Period

2020 ◽  
Vol 43 (338) ◽  
pp. 61-66
Author(s):  
Sandris Ancans
Keyword(s):  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Communist Regime ◽  
European Region ◽  
Eastern European ◽  
Planned Economy ◽  
Command Economy ◽  
Centrally Planned Economy ◽  
Communist Countries ◽  
The Eu

AbstractThe economy of Latvia lags behind economically developed nations approximately fourfold in terms of labour productivity in the tradable sector, which is the key constituent of a modern economy, thereby affecting future sustainable development in the entire country, including the rural areas. The economic backwardness is characteristic of the entire Central and Eastern Europe. This is the heritage of a communist regime that lasted for about half a century and the economic system termed a (centrally) planned economy or a command economy. However, such a term for the communist-period economy is not correct, as it does not represent the purpose it was created for. Accordingly, the paper aims to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU. A planned economy that existed in all communist countries, with the exception of Yugoslavia, was not introduced to contribute to prosperity. It was intended for confrontation or even warfare by the communist countries under the guidance of the USSR against other countries where no communism regime existed, mostly Western world nations with their market economies. For this reason, it is not correct to term it a (centrally) planned economy or a command economy; the right term is a mobilised (war) economy. An extrapolation of a geometric progression for GDP revealed that during the half a century, Latvia as part of the USSR was forced to spend on confrontation with the West not less than EUR 17 bln. (2011 prices) or approximately one gross domestic product of 2011. The research aim of the paper is to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU.

Political corruption in Central and Eastern Europe

2018 ◽  
pp. 169-193
Author(s):  
James L. Newell
Keyword(s):  
Eastern Europe ◽  
Third World ◽  
Western Europe ◽  
Central And Eastern Europe ◽  
Historical Context ◽  
Political Corruption ◽  
Political Life ◽  
Liberal Democracies ◽  
The World ◽  
Communist Countries

Political scientists have conventionally distinguished between advanced liberal democracies; communist and post-communist states, and so-called third-world countries. Though used less frequently than was once the case, the groups or ones like them are distinguished because drawing general conclusions about the nature of political life requires being able to categorise in order to compare countries; and because, broadly speaking, the groups mark broad distinctions tending to correlate with a range of variables including political corruption. Placing, then, the liberal democracies of Western Europe in one category and the former communist countries of Europe, plus Russia, in another reveals that corruption is a larger problem in the latter part of the world than it is in the former. Against this background, the chapter looks at the historical context of corruption during the communist era. It then provides an overview of the extent of corruption in the post-communist era and of the variations in its extent between the states concerned –before explaining the distinctive reasons for the development of these levels of corruption, assessing their impact and looking at what is being done and needs to be done to reduce levels of corruption.

Memory in Post-communist Europe: Controversies over Identity, Conflicts, and Nostalgia

2018 ◽  
Vol 32 (4) ◽  
pp. 924-935
Author(s):  
Małgorzata Głowacka-Grajper
Keyword(s):  
Eastern Europe ◽  
Collective Memory ◽  
Central And Eastern Europe ◽  
Second World War ◽  
The Political ◽  
World War ◽  
Communist Past ◽  
The One ◽  
Communist Countries ◽  
Second World

This article is part of the special cluster titled Social practices of remembering and forgetting of the communist past in Central and Eastern Europe, guest edited by Malgorzata Glowacka-Grajper Controversies over social memory form an important aspect of reality in the post-communist countries of Eastern Europe. On the one hand, there are debates about coming to terms with the communist past and the Second World War that preceded it (because important parts of the memory of the war were “frozen” during the communist era), and, on the other hand, and intimately connected to that, are discussions about the constant influence of communism on the current situation. This article presents some of the main trends in research on collective memory in the post-communist countries of Eastern Europe and reveals similarities and differences in the process of memorialization of communism in the countries of the region. Although there are works devoted to a comparative analysis of memory usage and its various interpretations in the political sphere in the countries of Eastern Europe, there are still many issues concerning daily practices (economic, religious, and cultural) associated with varying interpretations of the war and the communist past which needs further elaboration and analysis.

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