Mathematical Methods of Game and Economic Theory

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Aubin, J-P

1982-01-01

This book presents a unified treatment of optimization theory, game theory and a general equilibrium theory in economics in the framework of nonlinear functional analysis. It not only provides powerful and versatile tools for solving specific problems in economics and the social sciences but also serves as a unifying theme in the mathematical theory of these subjects as well as in pure mathematics itself.

Theories of International Economic Development (Case Study: Economic Development in Kosovo

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MSc. Bardhok Bashota

2012-06-01

Full Text Available Karl Popper rightly says that “real starting point for each research is set based on assumptions of reality, not only based on the real facts”. The text below was prepared In accordance with this logic, where the Theories of International Development are treated especially focusing on International Economic Development. Therefore, theoretical reflections present assumption side, and study of many empirically measured data will correspond with real facts, because with ought these facts assumption would be useless. Technically this writing consists of two parts: in the first part are elaborated all theoretical and practical characteristics of overall international development, while in a second part as a case study will be Economic Development i Kosovo. From methodological point of view this is a comparative study and based on statistical data, while problem treating approach is critical and explanatory. As it will be understood later, development theories have been decisively influenced by economic thinking, and the focus on this dimension responds best to the nature of the term development. On the other hand the fact of unfolding economical development will reflect interference and the nature of it’s inter politics. Today economic development becomes a worldwide goal, having a considerable place in most of the literature with economic content. Also, here are presented as well examples from different practices that reflect economic development in different periods and places. Here is presented international economic development starting with a brief description of a genealogy of this development and ways of economic development back that time. It is of a special importance elaboration through theoretical approach on the creation of capital and economic development, as  mercantilist theory, classic and neo classic theory, than capitalization and Socialism-Marxism. To better understand the nature of economic development, the focus falls on

Organizations, individualism and economic theory

NARCIS (Netherlands)

Brouwer, M.

2012-01-01

Most economic theory is based on the assumption that economies grow in a linear fashion. Recessions, depressions and (financial) crises are explained by policy mistakes. However, economic development has historically been uneven, and this state of affairs continues today. This book argues that

Issues of the economic risks theory under direct taxation

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Vyacheslav Aleksandrovich Slavin

2015-09-01

perturbation described by periodic functions of time their frequency equal to the frequency of technological cycles of the firm production units. The work states a number of correlations between the indicators of production processes and taxation processes. The effect of progressive taxation on the company is described. Scientific novelty for the first time the aricle demonstrates the possibility to theoretically describe the economic risks of the taxation company and to establish the economic nature of their essential characteristics. Practical significance the obtained results allow to form a complex of practical programs aimed at the optimization of the company performance indicators for the purpose of reducing the probability its assets of loss under taxation. nbsp

Decision-Making Under Risk: Integrating Perspectives From Biology, Economics, and Psychology.

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Mishra, Sandeep

2014-08-01

Decision-making under risk has been variably characterized and examined in many different disciplines. However, interdisciplinary integration has not been forthcoming. Classic theories of decision-making have not been amply revised in light of greater empirical data on actual patterns of decision-making behavior. Furthermore, the meta-theoretical framework of evolution by natural selection has been largely ignored in theories of decision-making under risk in the human behavioral sciences. In this review, I critically examine four of the most influential theories of decision-making from economics, psychology, and biology: expected utility theory, prospect theory, risk-sensitivity theory, and heuristic approaches. I focus especially on risk-sensitivity theory, which offers a framework for understanding decision-making under risk that explicitly involves evolutionary considerations. I also review robust empirical evidence for individual differences and environmental/situational factors that predict actual risky decision-making that any general theory must account for. Finally, I offer steps toward integrating various theoretical perspectives and empirical findings on risky decision-making. © 2014 by the Society for Personality and Social Psychology, Inc.

Theory of economic cycle: analysis of аustrian school

OpenAIRE

Nesterenko, O.

2008-01-01

Essence of Austrian theory of economic cycle has been revealed. Differences of Austrian school approaches from theories of economic fluctuations in other streams of economic sciences have been analyzed

Economic order quantity (EOQ) by game theory approach in probabilistic supply chain system under service level constraint for items with imperfect quality

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Setiawan, R.

2018-03-01

In this paper, Economic Order Quantity (EOQ) of probabilistic two-level supply – chain system for items with imperfect quality has been analyzed under service level constraint. A firm applies an active service level constraint to avoid unpredictable shortage terms in the objective function. Mathematical analysis of optimal result is delivered using two equilibrium scheme concept in game theory approach. Stackelberg’s equilibrium for cooperative strategy and Stackelberg’s Equilibrium for noncooperative strategy. This is a new approach to game theory result in inventory system whether service level constraint is applied by a firm in his moves.

Review of economic theories of regulation

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den Hertog, J.A.|info:eu-repo/dai/nl/21319161X

2010-01-01

This paper reviews the economic theories of regulation. It discusses the public and private interest theories of regulation, as the criticisms that have been leveled at them. The extent to which these theories are also able to account for privatization and deregulation is evaluated and policies

Evolutionary quantum game theory in the context of socio-economic systems

International Nuclear Information System (INIS)

Hanauske, Matthias

2011-01-01

The evolution of socio-economic systems depend on the interdependent decision processes of its underlying system components. The mathematical model to describe the strategic decision of players within a socio-economic game is ''game theory''. ''Quantum game theory'' is a mathematical and conceptual amplification of classical game theory. The space of all conceivable decision paths is extended from the purely rational, measurable space in the Hilbert-space of complex numbers - which is the mathematical space where quantum theory is formulated. By the concept of a potential entanglement of the imaginary quantum strategy parts, it is possible to include cooperate decision path, caused by cultural or moral standards. If this strategy entanglement is large enough, then additional Nash equilibria can occur, previously present dominant strategies could become nonexistent and new evolutionary stable strategies do appear for some game classes. Within this PhD thesis the main results of classical and quantum games are summarized and all of the possible game classes of evolutionary (2 player)-(2 strategy) games are extended to quantum games. It is shown that the quantum extension of classical games with an underlying dilemma-like structure give different results, if the strength of strategic entanglement is above a certain barrier. After the German summary and the introduction paper, five different applications of the theory are discussed within the thesis. (orig.)

Impact of Artificial Intelligence on Economic Theory

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Tshilidzi Marwala

2015-01-01

Artificial intelligence has impacted many aspects of human life. This paper studies the impact of artificial intelligence on economic theory. In particular we study the impact of artificial intelligence on the theory of bounded rationality, efficient market hypothesis and prospect theory.

An application of fisheries economics theory

DEFF Research Database (Denmark)

Frost, Hans Staby; Andersen, Peder; Hoff, Ayoe

2011-01-01

discrete-time model. The neo-classical concept of resource rent is maximized by use of various physical measures, such as fishing effort restrictions and fishing quotas, and economic measures, such as property or user rights and taxes. Although theory ranks economic measures above physical measures...

Economic theory and nursing administration research--is this a good combination?

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Jones, Terry L; Yoder, Linda

2010-01-01

Economic theory is used to describe and explain decision making in the context of scarce resources. This paper presents two applications of economic theory to the delivery of nursing services in acute care hospitals and evaluates its usefulness in guiding nursing administration research. The description of economic theory and the proposed applications for nursing are based on current nursing, healthcare, and economic literature. Evaluation of the potential usefulness of economic theory in guiding nursing administration research is based on the criteria of significance and testability as described by Fawcett and Downs. While economic theory can be very useful in explaining how decisions about nursing time allocation and nursing care production are made, it will not address the issue of how they should be made. Normative theories and ethical frameworks also must be incorporated in the decision-making process around these issues. Economic theory and nursing administration are a good fit when balanced with the values and goals of nursing.

Does prospect theory warrant a paradigm shift in the economics of risk?

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PL Mohapi

2014-07-01

Full Text Available This paper assesses whether a paradigm shift should be made from expected utility framework to prospect theory framework – in the economics of choice under risk. A brief overview of the subject is outlined, starting with expected utility theory and noting its descriptive limitations. Proposed theories to make up for these limitations is also provided. Prospect theory emerged as the most serious challenger to expected utility theory. A review of some descriptive predictions of prospect theory, suggests that there is no scientific reason why expected utility should not be ousted from dominance by prospect theory. The shift to prospect theory however is not without costs. Conceptual complexities and non-universality of application associated with prospect theory should be embraced with the shift while not entirely abandoning expected utility theory.

Which theories can explain the emerging economic problems? Theories of the firm in the new institutional economics

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Marek Matuszak

2010-12-01

Full Text Available The article presents basic assumptions and new theories of the firm connected with New Institutional Economics (NIE. NIE is regarded as a stream of research which enlarges and enriches the neoclassical economics. NIE focuses on the phenomena ignored by the traditional economics. The research field of NIE is very diversified but the adhesive which integrates all its streams is the idea that the main determinants of the development are institutions. The following part of the article contains a brief presentation of the notion, the significance and the types of institutions. It is stated that the market and its mechanisms depend on the characteristics of institutions which define its nature. Next the article presents briefly new theories of the firm related to NIE – the moral hazard or agency- theoretic approach, transaction cost economics approach and „capabilities” approach. The last part of the article examines the importance of institutions for creating the competitive advantage of a firm and of economies.

The Crisis of Economic Theory in the Middle of the Economic Crisis

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Silvia MĂRGINEAN

2011-05-01

Full Text Available Keynesian economics has lost much of its effectiveness as a paradigm of world capitalism as a whole, or as a paradigm of individual developed capitalist economies. The decline of the United States as a hegemonic power capable of imposing its will over others has seen to the erosion of the relevance of the Keynesian doctrine on the global scale. The Philips curve and what Hicks calls the “social” pressure on wages have severely restricted the field of Keynesian policy at home – even through the ruling classes continue to use Keynesian theory as their paradigm. The most important lesson from Keynes work may be that the macroeconomist should start from the important problems of the day and should face the following questions: 1 How can we to understand what are is happening right now? 2 What can be done about it? What is the best policy to follow? 3 Do recent events force us to modify what is today widely accepted economic theory? If so, what is wrong and how might we go about arriving at a more satisfying theory? The most important economic problem of today is current financial crisis that started in the United States. What might we learn from Keynesian theory about it? The current situation is almost the opposite of the one that Keynes dealt with in the “General Theory”. Now day’s economics lacks an anchored understanding of the nature of the reality that economics is supposed to illuminate. Instability of leverage, connectivity, and potential instability of the price level have all been neglected in stable – with – fractions macro theory. Technical innovations will not bring real progress as long as “stability – with – fractions” remains the ruling paradigm. Meanwhile, governments are not prepared to face another crisis.

Bifurcation theory for hexagonal agglomeration in economic geography

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Ikeda, Kiyohiro

2014-01-01

This book contributes to an understanding of how bifurcation theory adapts to the analysis of economic geography. It is easily accessible not only to mathematicians and economists, but also to upper-level undergraduate and graduate students who are interested in nonlinear mathematics. The self-organization of hexagonal agglomeration patterns of industrial regions was first predicted by the central place theory in economic geography based on investigations of southern Germany. The emergence of hexagonal agglomeration in economic geography models was envisaged by Krugman. In this book, after a brief introduction of central place theory and new economic geography, the missing link between them is discovered by elucidating the mechanism of the evolution of bifurcating hexagonal patterns. Pattern formation by such bifurcation is a well-studied topic in nonlinear mathematics, and group-theoretic bifurcation analysis is a well-developed theoretical tool. A finite hexagonal lattice is used to express uniformly distri...

INVESTIGATION OF FISCAL AND BUDGETARY POLICIES BASED ON ECONOMIC THEORIES

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EMILIA CAMPEANU

2011-04-01

Full Text Available Empirical analysis of fiscal and budgetary policies cannot be achieved without first knowing how they are viewed in the economic theories. This approach is important to indicate the position and implications of fiscal and budgetary policy tools in the economic theory considering their major differences. Therefore, the paper aims is to investigate the fiscal and budgetary policies based on economic theories such as neoclassical, Keynesian and neo-Keynesian theory in order to indicate their divergent points. Once known these approaches at the economic theory level is easier to establish the appropriate measures taking into consideration the framing of a country economy in a certain pattern. This work was supported from the European Social Fund through Sectoral Operational Programme Human Resources Development 2007-2013, project number POSDRU/89/1.5/S/59184 „Performance and excellence in postdoctoral research in Romanian economics science domain” (contract no. 0501/01.11.2010.

International Summer School on Mathematical Systems Theory and Economics

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Szegö, G

1969-01-01

The International Summer School on Mathematical Systems Theory and Economics was held at the Villa Monastero in Varenna, Italy, from June 1 through June 12, 1967. The objective of this Summer School was to review the state of the art and the prospects for the application of the mathematical theory of systems to the study and the solution of economic problems. Particular emphasis was given to the use of the mathematical theory of control for the solution of problems in economics. It was felt that the publication of a volume collecting most of the lectures given at the school would show the current status of the application of these methods. The papers are organized into four sections arranged into two volumes: basic theories and optimal control of economic systems which appear in the first volume, and special mathematical problems and special applications which are contained in the second volume. Within each section the papers follow in alphabetical order by author. The seven papers on basic theories are a rat...

Financial Markets Interactions between Economic Theory and Practice

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Mihaela NICOLAU

2010-12-01

Full Text Available During the last decades many financial analysts, either theorists or practitioners, have dedicated their studies to the interactions between different financial sectors. The results of these researches confirm that commodities, bonds and stock markets are closely related, therefore a thorough analysis of one should includes considerations of the other two. The aim of this article is to demonstrate that, even if from the theoretical point of view financial markets present typical and strong correlations between them, under economic turmoil the correlations change their signs. Both elementary rules of economic theory and examples with real time series are used in the demonstration. The results of our research emphasize that a simple theoretical analysis of financial markets’ behaviour through inflation and interest rates cannot define the real interactions of the markets and more robust research approaches are required.

The possibility of behavioral new institutional economics

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菊沢, 研宗

2011-01-01

Behavioral economics has recently been the subject of considerable research with the consequence that theories in behavioral economics and finance have complementarily developed to comprise a research field known as 'behavioral finance'. Subsequent studies seeking to integrate game theory and behavioral economics come under the 'behavioral game theory' umbrella, while those wanting to integrate contract theory and behavioral economics fall under 'behavioral contract theory'. Given such circum...

Bridging Economic Theory Models and the Cointegrated Vector Autoregressive Model

DEFF Research Database (Denmark)

Møller, Niels Framroze

2008-01-01

Examples of simple economic theory models are analyzed as restrictions on the Cointegrated VAR (CVAR). This establishes a correspondence between basic economic concepts and the econometric concepts of the CVAR: The economic relations correspond to cointegrating vectors and exogeneity in the econo......Examples of simple economic theory models are analyzed as restrictions on the Cointegrated VAR (CVAR). This establishes a correspondence between basic economic concepts and the econometric concepts of the CVAR: The economic relations correspond to cointegrating vectors and exogeneity...... are related to expectations formation, market clearing, nominal rigidities, etc. Finally, the general-partial equilibrium distinction is analyzed....

Bank Portfolio Structure and Economic Absorption Theory of Economic Development: A Theoretical Proposition

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Uduak B. UBOM

2016-11-01

Full Text Available The focus of this article was on theoretical proposition of Bank Portfolio Structure and Economic Absorption Theory of economic development. Specifically, the work sought to establish the basis of bank portfolio rigidity and to identify the causes of economic absorption problems and their implications on economic development. The theoretical and conceptual research designs were used. Existing literatures were reviewed using archival retrieval approach, library search and internet exploration. The information obtained was judgmentally, logically and qualitatively analyzed. It was discovered among others, that, bank portfolio rigidity stems from regulatory policy defects using inconsistent monetary policy tools such as high liquidity ratio and cash ratio, etc. and compelling the banks to adhere to the regulatory requirement, as well as lack of adequate and quality stock of infrastructure and technology as the basic causes of economic absorption problems. Above all, low level of economic absorption has been discovered to hinder effective contributions of banks to economic development. Following from above, it was therefore recommended that regulatory tools used by Central Banks should be aligned with the development needs of the economy and the direction of governments. The monetary policy tools such as liquidity and cash ratios should also be moderated and stabilized for stable bank portfolio performance as well as aggressive improvement in the stock and quality of infrastructure and technology within an economy. With the new theory, it is expected that policy formulations and adjustments concerning bank portfolio structure and management would be designed with adequate flexibility and focus on long term loans and investments coupled with improved stock and quality of infrastructure to enhance economic development. This theory therefore provides another frontier of research on bank portfolio structure and contributions to economic development.

Neoclassical and Institutional Economics as Foundations for Human Resource Development Theory

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Wang, Greg G.; Holton, Elwood F., III

2005-01-01

In an effort to more comprehensively understand economics as a foundation of human resource development (HRD), this article reviews economic theories and models pertinent to HRD research and theory building. By examining neoclassical and neoinstitutional schools of contemporary economics, especially the screening model and the internal labor…

Bridging Economic Theory Models and the Cointegrated Vector Autoregressive Model

DEFF Research Database (Denmark)

Møller, Niels Framroze

2008-01-01

Examples of simple economic theory models are analyzed as restrictions on the Cointegrated VAR (CVAR). This establishes a correspondence between basic economic concepts and the econometric concepts of the CVAR: The economic relations correspond to cointegrating vectors and exogeneity in the econo......Examples of simple economic theory models are analyzed as restrictions on the Cointegrated VAR (CVAR). This establishes a correspondence between basic economic concepts and the econometric concepts of the CVAR: The economic relations correspond to cointegrating vectors and exogeneity...... parameters of the CVAR are shown to be interpretable in terms of expectations formation, market clearing, nominal rigidities, etc. The general-partial equilibrium distinction is also discussed....

Economic contract theory tests models of mutualism.

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Weyl, E Glen; Frederickson, Megan E; Yu, Douglas W; Pierce, Naomi E

2010-09-07

Although mutualisms are common in all ecological communities and have played key roles in the diversification of life, our current understanding of the evolution of cooperation applies mostly to social behavior within a species. A central question is whether mutualisms persist because hosts have evolved costly punishment of cheaters. Here, we use the economic theory of employment contracts to formulate and distinguish between two mechanisms that have been proposed to prevent cheating in host-symbiont mutualisms, partner fidelity feedback (PFF) and host sanctions (HS). Under PFF, positive feedback between host fitness and symbiont fitness is sufficient to prevent cheating; in contrast, HS posits the necessity of costly punishment to maintain mutualism. A coevolutionary model of mutualism finds that HS are unlikely to evolve de novo, and published data on legume-rhizobia and yucca-moth mutualisms are consistent with PFF and not with HS. Thus, in systems considered to be textbook cases of HS, we find poor support for the theory that hosts have evolved to punish cheating symbionts; instead, we show that even horizontally transmitted mutualisms can be stabilized via PFF. PFF theory may place previously underappreciated constraints on the evolution of mutualism and explain why punishment is far from ubiquitous in nature.

Growth-based Theories for Declining Regions? A Note on Conceptualisations of Demographic Change for Regional Economic Development

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Anke Matuschewski

2016-01-01

Full Text Available This article aims to critically assess the economic growth paradigm, which typically underlies most approaches to regional policymaking for demographic change. While population losses, ageing and outmigration – i.e. phenomena that are addressed as demographic change – have become a matter of urgency for many European regions, most regional economic development theories remain silent about the population decline affecting the economic growth and development prospects of regions. Consequently, regional policies usually rely on the concept of economic growth, yet neglect the complexity and importance of demographic change and how it relates to the economic sphere. Due to this lack in nuance, we argue that regional policymaking fails to design adequate policy support for regions facing persistent demographic change and economic stagnation or decline as a result. Based on these observations, the paper examines a selection of regional economic development theories in search for alternative concepts of growth and development in the context of demographic change. To this aim, globalisation peripheries are introduced as a fruitful conceptual point of reference and, in combination with endogenous regional development theories, discussed as an alternative approach for regional policymaking.

Economics and Mathematical Theory of Games

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Ajda Fosner

2012-01-01

The theory of games is a branch of applied mathematics that is used in economics, management, and other social sciences. Moreover, it is used also in military science, political science, international relations, computer science, evolutionary biology, and ecology. It is a field of mathematics in which games are studied. The aim of this article is to present matrix games and the game theory. After the introduction, we will explain the methodology and give some examples. We will show applicatio...

View from Behavioral Economics Theory: Case of Latvian Rural Entrepreneurs

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Igo Cals

2013-11-01

Full Text Available The theory of classical economics treats entrepreneurs as subjects who make rational economic decisions. Empirical surveys prove the fact that daily economic decisions made by a separate economic entity can be explained by concepts of behavioral economics rather than classical economics. The economic behavior of entrepreneurs happens to be based on bounded rationality instead of financial justification. The objective of an economic activity presented as economically efficient can turn out to be socially important to a specific entrepreneur and not to national economy as a whole. In the EU countries, agriculture is a subsidised industry of national economy. In this light, status consumption and purchase of positional goods should create a special interest among economists. The objective of this article is to present true reasons of economic decisions made by rural entrepreneurs and to analyse the value hierarchy of Latvian rural entrepreneurs through carrying out a field work and with the help of set of instruments developed by modern economics theory.

Local economic development in theories of regional economies and rural studies

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Kačar Bahrija

2016-01-01

Full Text Available In this paper is a detailed analysis of the basics in the theory of economic development during the period from mid last century until today. It states the most significant theories, points out their ranges, offers a critical review regarding their treatment of development, especially regional, rural and local one. It observes those theories according to different classifications existing in scientific literature, primarily the ascend theory, stagnation theory, balanced economic growth theory; then, short-term and long-term development and growth theories; traditional and endogenous theories; economic growth stages theory emphasized after the WWII; structural changes theory; dependency theory, neo-classic counter-revolution theory and endogenous theory as a new growth theory. The analysis becomes wider with a study on development in regional economy theories and rural studies and it systematizes the classification of those theories according to regional economy academics. Distancing ourselves from any particular division as the most suitable and acceptable one, the theories are treated separately and in an historic context, in order to encircle the time framework which from modern theories, dealing with local level development difficulties, resulted. It asserts The Community-led Rural Development Theory, often referred to as the Community Development Theory, or marked as Bottom-up Partnership Approach. The analysis of development theories asserts that mixed exogenous - endogenous approach to development links the rural/local development to the globalization process mostly due to fast technology changes of the IT and communication sectors.

INSTITUTIONAL THEORY OF ECONOMIC REFORMS: BASIC IMPERATIVES

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Oleg Sergeevich SUKHAREV

2015-07-01

Full Text Available The ability of institutional economic theory to explain various kinds of economic reforms (changes on the basis of theoretical ideas about the dysfunction of institutions and systems are investigated. A number of classifications of reforms and dysfunctions is introduced and kinds of institutional efficiency of economic systems are defined. Qualitative regularities of various reforms of the twentieth century in different countries are generalized. A number of criteria of effective institutional reforms, capable to lower the depth and the scale of dysfunctions of the functioning economic subsystems is formed. System approach to the analysis of economic systems reforming with underlining the importance of reform “management” factor which defines productivity of economic development is elaborated. Life cycle of institution and economic system in the process of its reforming is presented and correction of J. Hellmann’s model, describing the reforming logic of economy is made.

Advertisement Translation under Skopos Theory

Institute of Scientific and Technical Information of China (English)

严妙

2014-01-01

This paper is an analysis of advertisement translation under skopos theory.It is explained that the nature of advertisement translation under skopos theory is reconstructing the information of the source text to persuade target audience.Three translation strategies are put forward in translating advertisements.

Teaching Economic Growth Theory with Data

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Elmslie, Bruce T.; Tebaldi, Edinaldo

2010-01-01

Many instructors in subjects such as economics are frequently concerned with how to teach technical material to undergraduate students with limited mathematical backgrounds. One method that has proven successful for the authors is to connect theoretically sophisticated material with actual data. This enables students to see how the theory relates…

PUBLIC ADMINISTRATION OF ECONOMIC DEVELOPMENT IN THE CONTEXT OF THE INSTITUTIONAL THEORY

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Valentina Dudchenko

2018-01-01

Full Text Available One of the priorities of socio-economic reform in Ukraine is the modernization of the structure of the national economy and its growth. An effective structure of the economy, which will correspond to a socially oriented model of economic growth and will be based on the use of both the country’s competitive advantages in the global division of labour and the economic benefits of cooperation, will guarantee the independence of any country and will be the key to its dynamic development. The development of economic theory is due to the emergence of fundamentally new ideas, sustainable accumulation of knowledge, intellectual and meaningful updating of established concepts and theories, the formation of new scientific schools. A new paradigm of economic theory should explain the real processes in real economies, which operate on the principles of complex systems of synergistic nature and the theory of nonlinear dynamics. There is a process of theoretical polystructuredness both of mainstream and heterodoxy. An important task is to form an interdisciplinary dialogue between economists and scientists, which stipulates the relevance of the research topic. The subject of the study is the theoretical and methodological foundations and approaches to state management of economic development in the context of the institutional theory. The purpose of the study is to determine the role and influence of public administration of the development of the economy in the context of institutional theory and to develop strategic goals of the state’s innovation policy. Methodology. Directions of correlation of the system of economic development of the country and the potential of the state development with the historical preconditions for the emergence and development of the institutional doctrine of economic theory are investigated. Based on the revealed interrelations, the necessity of using instruments of institutionalism for studying the economic development

Markets and organizations: individualism and economic theory

NARCIS (Netherlands)

Brouwer, M.

2010-01-01

Economic theory depicts markets and organizations as opposite allocation mechanisms. Market allocation is based on mobility and organization on instruction. The paper argues that markets and organizations are complements in economies that grow through innovation. Diversity of organizations lies at

Entrepreneurship and the Economic Theory of the Firm

DEFF Research Database (Denmark)

Foss, Nicolai Juul; Klein, Peter G.

Although they have developed very much in isolation from each other, we argue the theory ofentrepreneurship and the economic theory of the firm are closely related, and each has much tolearn from the other. In particular, the notion of entrepreneurship as judgment associated withFrank Knight...... and some Austrian school economists aligns naturally with the theory of the firm.In this perspective, the entrepreneur needs a firm, that is, a set of alienable assets he controls, tocarry out his function. We further show how this notion of judgment adds to the key themes inthe modern theory of the firm...

Input-Output Economics : Theory and Applications - Featuring Asian Economies

NARCIS (Netherlands)

Ten Raa, T.

2009-01-01

Thijs ten Raa, author of the acclaimed text The Economics of Input–Output Analysis, now takes the reader to the forefront of the field. This volume collects and unifies his and his co-authors' research papers on national accounting, Input–Output coefficients, economic theory, dynamic models,

Political Ideonomy of Rostow’s Stages of Economic Growth Theory

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M. Mozafarinia

2016-05-01

Full Text Available The conditions of success and reasons for failure of development strategies and plans, are among the most important “development studies” issues. This has been explained in different ways: for example, there is a strong relationship between the efficiency of development strategies and plans and development theories. Based on paradigmatic-implicative theory, which explains the relationship between development theories and political thought and considers the development theory as one of the practical implications of political thought, a condition for the success of development strategies and development plans can be found to be rooted in the political thought foundation. Therefore, in the present article we explore the political thought supporting Rostow’s Stages of Economic Growth theory, as one of the oldest and most important development theories which in the 1960s resulted in understanding development as “growth”. We use qualitative content analysis method to show that the political foundation of Rostow’s Stages of Economic Growth theory is based on the principle of “the most utility for the most people” in accordance with Bentham’s utilitarian political thought.

Introductory statistics for business and economics theory, exercises and solutions

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Ubøe, Jan

2017-01-01

This textbook discusses central statistical concepts and their use in business and economics. To endure the hardship of abstract statistical thinking, business and economics students need to see interesting applications at an early stage. Accordingly, the book predominantly focuses on exercises, several of which draw on simple applications of non-linear theory. The main body presents central ideas in a simple, straightforward manner; the exposition is concise, without sacrificing rigor.  The book bridges the gap between theory and applications, with most exercises formulated in an economic context. Its simplicity of style makes the book suitable for students at any level, and every chapter starts out with simple problems. Several exercises, however, are more challenging, as they are devoted to the discussion of non-trivial economic problems where statistics plays a central part.

Prospect theory on the brain? Toward a cognitive neuroscience of decision under risk.

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Trepel, Christopher; Fox, Craig R; Poldrack, Russell A

2005-04-01

Most decisions must be made without advance knowledge of their consequences. Economists and psychologists have devoted much attention to modeling decisions made under conditions of risk in which options can be characterized by a known probability distribution over possible outcomes. The descriptive shortcomings of classical economic models motivated the development of prospect theory (D. Kahneman, A. Tversky, Prospect theory: An analysis of decision under risk. Econometrica, 4 (1979) 263-291; A. Tversky, D. Kahneman, Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5 (4) (1992) 297-323) the most successful behavioral model of decision under risk. In the prospect theory, subjective value is modeled by a value function that is concave for gains, convex for losses, and steeper for losses than for gains; the impact of probabilities are characterized by a weighting function that overweights low probabilities and underweights moderate to high probabilities. We outline the possible neural bases of the components of prospect theory, surveying evidence from human imaging, lesion, and neuropharmacology studies as well as animal neurophysiology studies. These results provide preliminary suggestions concerning the neural bases of prospect theory that include a broad set of brain regions and neuromodulatory systems. These data suggest that focused studies of decision making in the context of quantitative models may provide substantial leverage towards a fuller understanding of the cognitive neuroscience of decision making.

Revisiting the relevance of economic theory to hotel revenue ...

African Journals Online (AJOL)

This paper explores the role of economics in hospitality education and industry practice, with a particular focus on revenue management, and puts forward an argument for a return to the inclusion of economic theory in UK hospitality education, not seen since the 1990s. Given the increasing amounts of pricing data available ...

Action-Based Jurisprudence: Praxeological Legal Theory in Relation to Economic Theory, Ethics, and Legal Practice

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Konrad Graf

2011-08-01

Full Text Available Action-based legal theory is a discrete branch of praxeology and the basis of an emerging school of jurisprudence related to, but distinct from, natural law. Legal theory and economic theory share content that is part of praxeology itself: the action axiom, the a priori of argumentation, universalizable property theory, and counterfactual-deductive methodology. Praxeological property-norm justification is separate from the strictly ethical “ought” question of selecting ends in an action context. Examples of action-based jurisprudence are found in existing “Austro-libertarian” literature. Legal theory and legal practice must remain distinct and work closely together if justice is to be found in real cases. Legal theorizing was shaped in religious ethical contexts, which contributed to confused field boundaries between law and ethics. The carrot and stick influence of rulers on theorists has distorted conventional economics and jurisprudence in particular directions over the course of centuries. An action-based approach is relatively immune to such sources of distortion in its methods and conclusions, but has tended historically to be marginalized from conventional institutions for this same reason.

Theories of practice - new inspiration for ecological economic studies on consumption

DEFF Research Database (Denmark)

Røpke, Inge

2009-01-01

The dynamics behind ever-increasing consumption have long been a core issue of ecological economics. Studies on this topic have traditionally drawn not only on insights from economics, but also from such disciplines as sociology, anthropology and psychology. In recent years, a practice theory...... approach has emerged in sociological consumption studies, as part of a general wave of renewed interest in practice theory emanating from a desire to move beyond such dominant dualisms as the structure-actor opposition in sociology. The purpose of this paper is to introduce the practice theory approach...... in relation to studies of everyday life, domestic practices and consumption, and to argue that this approach can be fruitful for ecological economics and other fields interested in the environmental aspects of consumption. The paper emphasizes the immense challenge involved in promoting sustainable...

Defining competitiveness through the theories of new economic geography and regional economy

Directory of Open Access Journals (Sweden)

Vuković Darko

2012-01-01

Full Text Available The subject of work is defining competitiveness through a multidisciplinary approach of the theories of new economic geography and regional economy. The paper describes in detail the theory of competitiveness, defined by numerous authors in this area, with special emphasis on the opposing views of Michael Porter and Paul Krugman. A regional competitiveness that is colsely related to economic geography and regional economy, the development of regional economy and typology of regions have been defined in the work. One of the first authors that stressed the importance of geographical location was Michael Porter. In his model called “diamond“, the author emphasizes that geographical concentration of a business enhances the productivity, innovativity and sector export. After this theory, many authors have foccussed on the location problem research, which resulted in better interconnection of economy and geography. As the result of such activities, new directions have been developed, such as the new theory of economic geography and regional economy. New economic geography has been mentioned mostly in connection with the Nobel Prize winner, Paul Krugman, whose theories are often opposed to Porter's ones. Krugman had the most credit for the development of New Economic Geography. At the end of the work, the differences between comparative and competitive adventages were explained. [Projekat Ministarstva nauke Republike Srbije, br. 47007, br. 47009 i br. 179015

What every conservation biologist should know about economic theory.

Science.gov (United States)

Gowdy, John; Hall, Charles; Klitgaard, Kent; Krall, Lisi

2010-12-01

The last century has seen the ascendance of a core economic model, which we will refer to as Walrasian economics. This model is driven by the psychological assumptions that humans act only in a self-referential and narrowly rational way and that production can be described as a self-contained circular flow between firms and households. These assumptions have critical implications for the way economics is used to inform conservation biology. Yet the Walrasian model is inconsistent with a large body of empirical evidence about actual human behavior, and it violates a number of basic physical laws. Research in behavioral science and neuroscience shows that humans are uniquely social animals and not self-centered rational economic beings. Economic production is subject to physical laws including the laws of thermodynamics and mass balance. In addition, some contemporary economic theory, spurred by exciting new research in human behavior and a wealth of data about the negative global impact of the human economy on natural systems, is moving toward a world view that places consumption and production squarely in its behavioral and biophysical context. We argue that abandoning the straightjacket of the Walrasian core is essential to further progress in understanding the complex, coupled interactions between the human economy and the natural world. We call for a new framework for economic theory and policy that is consistent with observed human behavior, recognizes the complex and frequently irreversible interaction between human and natural systems, and directly confronts the cumulative negative effects of the human economy on the Earth's life support systems. Biophysical economics and ecological economics are two emerging economic frameworks in this movement. © 2010 Society for Conservation Biology.

The economic consequences of homo economicus: neoclassical economic theory and the fallacy of market optimality

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David Calnitsky

2013-05-01

Full Text Available This essay presents a critique of the standard ascension from the rational agent to the optimal market in economic theory. Critiques of homo economicus are found unsatisfactory on grounds that its employment allows for the prediction of essential features of actual markets. using this same criterion we introduce Gary Becker’s essay, ‘irrational Behavior and economic Theory,’which demonstrated that the same features of markets could be derived from non-rational behaviour. Thus, non-rationality is equally predictive but is less restrictive than rationality. Once the assumption of rationality is relaxed, the concept of market optimality (though not market order must also be sacrificed.

THE THEORY OF IMPREVISION IN THE CONTEXT OF THE ECONOMIC CRISIS AND THE NEW ROMANIAN CIVIL CODE (NCC

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Bazil Oglindă

2012-11-01

Full Text Available This paper addresses one of the most pressing issues of private law, namely, the theory of unpredictability. The theory of imprevision is a question of law under the effects of the current economic crisis has resulted in contract law. Also, updating legal issues raised by the theory of unpredictability occurs in the context of regulation for the first time at its principle in art. 1271 NCC. This paper deals with the concept, scope, conditions applying theory in the context of imprevision in terms of law doctrine and the relevant case law. It also presents elements of comparative law.

Does the Financial Crisis Affect How Economic Theory Should Be Taught?

Science.gov (United States)

Kafka, Alexander C., Comp.

2008-01-01

Professors of economics, business, and related fields were asked to answer the following question: Does the financial crisis affect how economic theory should be thought? This article presents some excerpts from their answers.

Technical conditions for sustainable growth in economic theory. An analysis

International Nuclear Information System (INIS)

Granda C, Catalina

2008-01-01

Economic theory and its models point out returns to scale, substitution among productive factors and technological progress as conditions for sustainable growth. This work aims at a critical appraisal of these conditions, particularly the ones related to substitution between natural resources and manmade capital and technical change, by recognizing the inevitable physical scarcity of resources concomitant to the human actions in a world governed by hemodynamic restrictions. To do so, the role that the mentioned conditions play in the theories of economic growth with resources is analyzed, and its limitations and objections from a biophysical perspective are indicated as well. Finally, a brief consideration as to how inappropriate the theoretical representations of economic activities are to take account of growth in spite of resource exhaustion or degradation is carried out

Economic game theory for mutualism and cooperation.

Science.gov (United States)

Archetti, Marco; Scheuring, István; Hoffman, Moshe; Frederickson, Megan E; Pierce, Naomi E; Yu, Douglas W

2011-12-01

We review recent work at the interface of economic game theory and evolutionary biology that provides new insights into the evolution of partner choice, host sanctions, partner fidelity feedback and public goods. (1) The theory of games with asymmetrical information shows that the right incentives allow hosts to screen-out parasites and screen-in mutualists, explaining successful partner choice in the absence of signalling. Applications range from ant-plants to microbiomes. (2) Contract theory distinguishes two longstanding but weakly differentiated explanations of host response to defectors: host sanctions and partner fidelity feedback. Host traits that selectively punish misbehaving symbionts are parsimoniously interpreted as pre-adaptations. Yucca-moth and legume-rhizobia mutualisms are argued to be examples of partner fidelity feedback. (3) The theory of public goods shows that cooperation in multi-player interactions can evolve in the absence of assortment, in one-shot social dilemmas among non-kin. Applications include alarm calls in vertebrates and exoenzymes in microbes. 2011 Blackwell Publishing Ltd/CNRS.

An economic theory of Islamic finance

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Mabid Ali Al-Jarhi

2017-07-01

Full Text Available Purpose - This paper aims to provide an economic rationale for Islamic finance. Design/methodology/approach - Its methodology is simple. It starts with listing the contributions to economic analysis relevant to the required rationale in the theories of banking, finance, price, money and macroeconomics, to identify the main rationale for Islamic finance. A concise description of the author’s model for an Islamic economic system, within which Islamic finance can be operational, is provided. Findings - The paper finds distinct advantages of Islamic finance, when properly applied within the author’s model. Islamic finance can therefore be a candidate as a reform agenda for conventional finance. It opens the door for significant monetary reform in currently prevalent economic systems. Research limitations/implications - The first limitation of the paper is that the distinct benefits of Islamic finance are all of macroeconomic types which are external to Islamic banking and finance institutions. They are therefore not expected to motivate such institutions to apply Islamic finance to the letter, without regulators interference to ensure strict application. The second limitation is the necessity to set up enabling institutional and regulatory arrangements for Islamic finance. Originality/value - The results are unique as they challenge the received doctrine and provide non-religious rationale for Islamic finance.

An economic theory-based explanatory model of agricultural land-use patterns

NARCIS (Netherlands)

Diogo, V.; Koomen, E.; Kuhlman, T.

2015-01-01

An economic theory-based land-use modelling framework is presented aiming to explain the causal link between economic decisions and resulting spatial patterns of agricultural land use. The framework assumes that farmers pursue utility maximisation in agricultural production systems, while

Evolutionary quantum game theory in the context of socio-economic systems; Evolutionaere Quanten-Spieltheorie im Kontext sozio-oekonomischer Systeme

Energy Technology Data Exchange (ETDEWEB)

Hanauske, Matthias

2011-02-14

The evolution of socio-economic systems depend on the interdependent decision processes of its underlying system components. The mathematical model to describe the strategic decision of players within a socio-economic game is ''game theory''. ''Quantum game theory'' is a mathematical and conceptual amplification of classical game theory. The space of all conceivable decision paths is extended from the purely rational, measurable space in the Hilbert-space of complex numbers - which is the mathematical space where quantum theory is formulated. By the concept of a potential entanglement of the imaginary quantum strategy parts, it is possible to include cooperate decision path, caused by cultural or moral standards. If this strategy entanglement is large enough, then additional Nash equilibria can occur, previously present dominant strategies could become nonexistent and new evolutionary stable strategies do appear for some game classes. Within this PhD thesis the main results of classical and quantum games are summarized and all of the possible game classes of evolutionary (2 player)-(2 strategy) games are extended to quantum games. It is shown that the quantum extension of classical games with an underlying dilemma-like structure give different results, if the strength of strategic entanglement is above a certain barrier. After the German summary and the introduction paper, five different applications of the theory are discussed within the thesis. (orig.)

THE ECONOMIC BASIS IN ORGANISATIONAL BEHAVIOUR – BEHAVIOURAL THEORY OF THE FIRM

OpenAIRE

VIRGINIA BĂLEANU

2007-01-01

From the economic sciences’ stand point, the process of decision making, including aspects concerning with establishing organizational objectives, is the object of the firm theories. So, these theories that reflect the management’s responsibility in the context of the relationships between people and the organization may be considered the economic basis of organisational behaviour. Parkinson’s Law and the Peter Principle are unconventional examples of the organisational practices that prove t...

Influences of Economic Theories on Accounting Theory: the case of the Objective Function of the Firm

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Lineker Costa Passos

2016-10-01

Full Text Available This essay aims to establish the relationship between the theoretical precepts that guide the accounting disclosure procedures for its stakeholders, both internal and external, and the two main theoretical trends that address the firm’s objective function: the Shareholder theory and the Stakeholder theory. In the perspective of the Shareholder theory, the firm has to define a single objective, which is to maximize shareholder wealth. In the context of Stakeholders theory, the firm must establish a multiple objective, which is to meet the interests of all those involved with its activities. We discuss to what extent theories, standards and accounting practices emanate from the concepts of the two models, especially regarding the users’ demand for useful and relevant information. There is a predominance of Shareholder theory in influencing accounting principles that guide the disclosure of information, although different accounting reports are already discussed and presented, oriented to the Stakeholders of the firm, without establishing a set of concepts that explain and justify them within the scope of Accounting theory. Additionally, it is argued that, all things taken into consideration, both currents of the Economic theory point in the same direction: to seek the wellbeing of the firm’s stakeholders. The research contributes to the accounting literature, in the sense of clarifying the impacts arising from the two economic models that deal with the objective function of the firm in the evolution of Accounting theory, not yet captured directly in the discussion of the fundamentals of accounting theory.

Revisiting the relevance of economic theory to hotel revenue ...

African Journals Online (AJOL)

Keywords: economic theory, hotels, revenue management, Big Data, hospitality education ... and the ease and quality in which pricing information is delivered to ...... Cornell Hotel and Restaurant Administration Quarterly, 25(2), 27–40.

Tracking Gender Equity under Economic Reforms: Continuity and ...

International Development Research Centre (IDRC) Digital Library (Canada)

Tracking Gender Equity under Economic Reforms: Continuity and Change in South ... She has a master's degree in economics from the Delhi School of Economics ... An IDRC delegation will join international delegates and city representatives ...

An Economic Theory of Glass Ceiling

OpenAIRE

Paul A. Grout; In-Uck Park; Silvia Sonderegger

2009-01-01

In the 'glass ceiling' debate there appear to be two strongly held and opposing interpretations of the evidence, one suggesting it is really the result of gender differences and the other that there is discrimination by gender. This paper provides an economic theory of the glass ceiling and one of the main insights of our analysis is that in some real sense these two interpretations are not in conflict with each other. The glass ceiling emerges as an equilibrium phenomenon when firms compete ...

Principles of Economic Union. An Extension of John Rawls's Theory of Justice

NARCIS (Netherlands)

Wolthuis, A.J.

2017-01-01

In this article I uncover the principles of justice by which an economic union is to be constituted. For this purpose I extend John Rawls’s constructivist theory of justice to economically integrated societies. With regard to the principles I defend a twofold claim. First, the principles of economic

Complexity theory and financial regulation: economic policy needs interdisciplinary network analysis and behavioral modeling

NARCIS (Netherlands)

Battiston, S.; Farmer, J.D.; Flache, A.; Garlaschelli, D.; Haldane, A.G.; Heesterbeek, H.; Hommes, C.; Jaeger, C.; May, R.; Scheffer, M.

2016-01-01

Traditional economic theory could not explain, much less predict, the near collapse of the financial system and its long-lasting effects on the global economy. Since the 2008 crisis, there has been increasing interest in using ideas from complexity theory to make sense of economic and financial

Neuroeconomics: Bringing Neuroscience and Economics Together

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Gelengül KOÇASLAN

2010-12-01

Full Text Available There are revealed situations in economics where the key axioms of mainstream theory are violated. Bandwagon, snob and Veblen effects are the examples from the demand theory . Maurice Allais and Daniel Ellsberg have determined the behavior anomalies under risk and uncertainty in 1953 and in 1962 respectively. Deviations from the optimal economic behavior have been argued by several economists and psychologists. Currently the components of economic behavior is being discussed at a neural base by neuroeconomists combining the methods of neuroscience and economics. This study is designed to understand neuroeconomics, its techniques and applications and also it is aimed to better understand the basic motives underlying economic behavior in real life situations

Economic Theory, Economic Reality And Economic Policy

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Dmitry Evgenievich Sorokin

2015-03-01

Full Text Available This paper analyzes the opposition between the «liberals» and «statists» in the Russian political and economic thought. It demonstrates that the economic liberalization is an absolute prerequisite for the transition to sustainable socio-economic development. Such development must rely on investment activities of the state, which in the current circumstances is a necessary but not sufficient measure for reversing the negative trends. The negative developments can be prevented only through implementation, along with the institutional changes in the economic area that form a strata of economically independent entrepreneurs-innovators, of no less profound transformation in political institutions aimed at democratization of public life

Human Capital as a Challenge for Economics Theory

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Barbara Wyrzykowska

2014-12-01

Full Text Available The issue of human capital is increasingly attracting the attention of both theorists and practitioners, because at present human resources play a decisive role in the creation of competitive economies and business entities. Human capital and knowledge are becoming key factors in the area of entity competitiveness. Consequently, human capital is currently being analysed in a multi-faceted way in the context of numerous economic theories. The aim of this study is to summarize, analyse, and synthesise the information published on the subject of the theory of human capital and to present new theories and scientific paradigms. The theories presented in this study show that employees constitute the basic capital of modern organizations. One of the contemporary paradigms of modern management is the concept of knowledge-based economy and the paradigm of information technology. This article is based on literature studies and theoretical reflections of the author.

Productive Systems and the Structuring Role of Economic and Social Theories

OpenAIRE

Frank Wilkinson

2002-01-01

The institutions of productive systems are structured by mutual interests and relative power. Securing mutually beneficial cooperation in production requires resolving distributional differences. These objectives are secured in liberal economic theory by the working of markets which mediate the power of individuals and reward individual success. The centrality of individuals and hierarchies in market theory contrasts with developments in labour management theory which identifies group activit...

The Contribution of the Neo-Schumpeterian Approach to the Development of the Economic Theory: Emphasis on the Meso-Economic Level

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Radu HERMAN

2011-07-01

Full Text Available This article tries to show that there are alternative approaches to the economic theory, besides the well-known economic schools, Classicism, Neoclassicism and Keynesianism. The neoclassical principles allow a formalization – widely accepted by experts – that provide effective tools for measuring the effects of the economic activity. The economic science pays a special attention to the study of the economic agents’ behaviors, and to the economic results obtained by them through economic activity. Any human science uses principles and works with assumptions, and the neoclassical assumptions have generated efficient tools for quantifying the economic outcomes, and for accounting the economic growth. But these hypothesis, such as the assumption of economic agents’ rationality, allow a very limited understanding of the behaviors of economic agents within the markets. The recent invention of the Nuclear Magnetic Resonance device, allowed the emrgence of a new scientific paradigm, the development of neurosciences. Researchers can observe at a high level of graphic detail various types of activities that occur in the human brain, and some economists have introduced in the study of the economic theory, for example, the assumption that the consumer is driven by emotions when purchasing quantities of goods and services. So, economists may look for additional theories to explain the behavior of the economic agents. An increasingly importance is given to the theoretical contributions built on the work of the economist Joseph Alois Schumpeter, who has an original economic approach based on his own principles. It is proposed to focus the attention on a mesoeconomic vision about the industry, to understand how resources are being allocated and reallocated between companies, and to study the economic processes of evolution, which are influenced by the emergence and dissemination of the innovations. It is supposed that the price is allocating the

T.I.Tech./K.E.S. Conference on Nonlinear and Convex Analysis in Economic Theory

CERN Document Server

Takahashi, Wataru

1995-01-01

The papers collected in this volume are contributions to T.I.Tech./K.E.S. Conference on Nonlinear and Convex Analysis in Economic Theory, which was held at Keio University, July 2-4, 1993. The conference was organized by Tokyo Institute of Technology (T. I. Tech.) and the Keio Economic Society (K. E. S.) , and supported by Nihon Keizai Shimbun Inc .. A lot of economic problems can be formulated as constrained optimiza­ tions and equilibrations of their solutions. Nonlinear-convex analysis has been supplying economists with indispensable mathematical machineries for these problems arising in economic theory. Conversely, mathematicians working in this discipline of analysis have been stimulated by various mathematical difficulties raised by economic the­ ories. Although our special emphasis was laid upon "nonlinearity" and "con­ vexity" in relation with economic theories, we also incorporated stochastic aspects of financial economics in our project taking account of the remark­ able rapid growth of this dis...

Activity Analysis: Bridging the Gap between Production Economics Theory and Practical Farm Management Procedures

OpenAIRE

Longworth, John W.; Menz, Kenneth M.

1980-01-01

This paper is addressed to the traditional problem of demonstrating the relevance of production theory to management-oriented people. Activity analysis, it is argued, is the most appropriate pedagogic framework within which to commence either a production economics or a farm management course. Production economics theory has not been widely accepted as a useful method for the analysis of practical management problems. The theory has been traditionally presented in terms of continuous function...

New Challenges of Contingency Theory in Management Accounting System, in Terms of Global Economic Crisis

OpenAIRE

Ene Dumitru

2010-01-01

This paper aims to answer the question: 1. The contingency theory can be a source of improvement in management accounting research ,in terms of global economic crisis?’’ 2. Can be Contingency factors a bridge between organizational theories and management accounting? Research purpose: -The contingency theory can be a source of improvement in management accounting research, in terms of global economic crises; -Contingency factors can be a bridge between organizational theories and management a...

Links between economic and financial theory in graduate health administration education.

Science.gov (United States)

Pink, G H; Coyte, P C

1989-01-01

The curricula of graduate health administration programs have, historically, not articulated the theoretical links between health economics and health finance, although an understanding of these links could enhance comprehension of both disciplines. We provide a pedagogical approach that can be used to clarify these interconnections. It compares the standard neoclassical microeconomic concept of the hospital with the financial concept of the hospital, for the purpose of relating the optimal output decision in microeconomic theory to the optimal investment decision in financial theory. This approach can be taught in an advanced course in either economics or finance.

Understanding the Drivers of Economic Growth: Grounding Endogenous Economic Growth Models in Resource-Advantage Theory

OpenAIRE

Hunt, Shelby D.

2012-01-01

Foss (2012) provides an informed and informative comment on my article “Trust, Personal Moral Codes, and the Resource-Advantage Theory of Competition: Explaining Productivity, Economic Growth, and Wealth Creation” (Hunt, 2012). In general, his comment is highly supportive of both the theory and the arguments developed in my article. He does, however, raise certain issues that need to be addressed. These issues relate to the concept of total factor productivity, the role of institutions in pro...

Forming the Modern Labour Market Economics: On the Role of Institutionalist Theories

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Dagmar Brožová

2016-12-01

Full Text Available The growing role of institutions and their influence on the labour market outcomes, i.e., wage rates and labour allocation, has been among the most significant characteristic features of labour markets in recent decades. The labour market economics built its paradigm on the principles of marginalism, which brought suitable instruments for the analysis of market agents’ individual decisions capable of achieving effective solutions. Smith’s “invisible hand” has gradually been limited by institutional interventions – by governments, corporations and trade unions with government legislation, corporate personnel policies and collective bargaining. The expanding regulatory interventions in the labour market and the effort to explain the reality leads inevitably to the fact that the modern labour market economics incorporates more and more institutional theories. The contribution outlines the gradual invasion of neoinstitutional topics and theories into the neoclassical labour market paradigm and it analyses the differences between the neoclassical and institutional interpretation of labour market functioning. It presents the recent discussion on the consequences for the labour market economic theory and formulates a conclusion about the modified labour market economic paradigm.

Competition to commit crime: An economic experiment on illegal logging using behavioral game theory

OpenAIRE

Tananya Songchoo; Komsan Suriya

2012-01-01

This study constructs an economic experiment using behavioral game theory to figure out policies that discourage illegal logging in Thailand. A player is assigned to be either a police or an outlaw in the game. The game randomly matches two players in different roles. The lawbreaker can offer a bribe to police under uncertainties whether the police may refuse it or reject the offer because of too small amount of the bribe. Even when bribery is accepted, it is still uncertain for an lawbreaker...

Coevolution of economic behaviour and instituions: towards a theory of institutional change.

NARCIS (Netherlands)

van den Bergh, J.C.J.M.; Stagl, S.

2003-01-01

Traditionally, economics has regarded institutions, notably norms and regulations, as fixed or exogenous. Surprisingly few insights on institutional evolution from natural and social sciences have made their way into economics. This article gives an overview of evolutionary theories of institutions

Coevolution of economic behaviour and institutions: towards a theory of institutional change

NARCIS (Netherlands)

van den Bergh, J.C.J.M.

2003-01-01

Traditionally, economics has regarded institutions, notably norms and regulations, as fixed or exogenous. Surprisingly few insights on institutional evolution from natural and social sciences have made their way into economics. This article gives an overview of evolutionary theories of institutions

Competition in electricity spot markets. Economic theory and international experience

Energy Technology Data Exchange (ETDEWEB)

Fehr, Nils-Henrik von der; Harbord, David

1998-09-01

This publication gives a survey of economic theory and international experience connected to electricity spot markets. The main purpose is to consider the attempts that have been made to apply economic theory and empirical methods to the analysis of electricity markets, and to evaluate them in light of theoretical considerations and empirical evidence. The publication describes in simple terms the basic pool pricing mechanism, and experience with pools in a number of countries. It is worth emphasizing that it is not the purpose to treat in extensive detail the structure of electricity pools around the world. Key factors of the markets in England and Wales, Norway and Australia are described in order to allow for a comparison of design issues and evaluation of competitive performance. 80 refs., 14 figs., 15 tabs.

Time horizons and electricity futures: An application of Nicholas Georgescu-Roegen's general theory of economic production

Energy Technology Data Exchange (ETDEWEB)

Farrell, Katharine N. [Department of Economics, Helmholtz Centre for Environmental Research - UFZ, Permoserstr. 15, 04318 Leipzig (Germany); Gibson Institute for Land, Food and Environment, Queen' s University of Belfast, Northern Ireland (United Kingdom); Mayumi, Kozo [Faculty of Integrated Arts and Sciences, The University of Tokushima (Japan)

2009-03-15

This paper reports theoretical economic production work and uses electricity futures trading to illustrate its argument. The focus is relationships between time, production and tradition both in Nicholas Georgescu-Roegen's analytical representation of the production process (i.e., flow/fund model) and in his dialectical scheme dealing with the evolutionary changes in the economic process. Our main arguments are (1) the flow/fund model is designed to be employed in conjunction with attention to how the boundaries of a given process are determined and (2) process boundaries are dialectical distinctions - between process and not-process - that are strongly related to time and tradition. We propose that Georgescu-Roegen's The Entropy Law and the Economic Process is best understood as the elaboration of a general theory of economic production and we developed two conceptual tools (time {open_square} and meta-funds), both of which are related to the dialectical distinction between process and not-process, which we use to operationalise this general theory. Finally, we demonstrate that, although trading in electricity futures is surprising if one uses a stock/flow vs services distinction (because electricity supply is classed as a service) it appears perfectly logical under Georgescu-Roegen's general theory: shortening time horizons, combined with a shift in the relationship between raw fuel supplies and power production procedures, lead to a shift in the status of electricity supply, from fund to flow. (author)

Topics in mathematical economics and game theory essays in honor of Robert J. Aumann

CERN Document Server

Wooders, Myrna H

1999-01-01

Since the publication of Theory of Games and Economic Behavior by von Neumann and Morgenstern, the concept of games has played an increasing role in economics. It also plays a role of growing importance in other sciences, including biology, political science, and psychology. Many scientists have made seminal advances and continue to be leaders in the field, including Harsanyi, Shapley, Shubik, and Selten. Professor Robert Aumann, in addition to his important contributions to game theory and economics, made a number of significant contributions to mathematics. This volume provides a collection

Theory of imprevision from the economic and legal perspective of contract analysis

Directory of Open Access Journals (Sweden)

Radu Ştefan PĂTRU

2011-06-01

Full Text Available The new realities of the 21st century ask for a revitalization of the economic and legal systems so as to overcome the effects of the economic crisis. The current economic crisis is at the same time a challenge for the scientific milieu which is called to find the best solutions for the reversal and adaptation of the main scientific institutions. For the legal system, the contract represents an essential factor both theoretically and practically so that the new legislative decisions appear to be as highly important. As a particular case study, we intend to analyse the theory of imprevision both from the theoretical viewpoint and the one of practical consequences that the regulation of this institution might generate in the domestic legislative environment through the provisions of the New Civil Code. Far from our affiliation to the opinions that vividly sustain or reject the regulation of this theory, this article intends to be an objective analysis of the theory of imprevision representing one of the greatest challenges for the New Civil Code.

China’s Institutional Architecture: A New Institutional Economics and Organization Theory Perspective on the Links between Local Governance and Local Enterprises

NARCIS (Netherlands)

B. Krug (Barbara); H. Hendrischke (Hans)

2008-01-01

textabstractWe start our exploration of China’s institutional change by asking what the China experience can tell us about institutional economics and organization theory. We point to under-researched areas such as the formation of firms and the interplay between firms and local politics. Our

Antieigenvalue analysis for continuum mechanics, economics, and number theory

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Gustafson Karl

2016-01-01

Full Text Available My recent book Antieigenvalue Analysis, World-Scientific, 2012, presented the theory of antieigenvalues from its inception in 1966 up to 2010, and its applications within those forty-five years to Numerical Analysis, Wavelets, Statistics, Quantum Mechanics, Finance, and Optimization. Here I am able to offer three further areas of application: Continuum Mechanics, Economics, and Number Theory. In particular, the critical angle of repose in a continuum model of granular materials is shown to be exactly my matrix maximum turning angle of the stress tensor of the material. The important Sharpe ratio of the Capital Asset Pricing Model is now seen in terms of my antieigenvalue theory. Euclid’s Formula for Pythagorean triples becomes a special case of my operator trigonometry.

An Assessment of Economic Stability under the New European Economic Governance

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Gheorghe HURDUZEU

2015-06-01

Full Text Available The economic crisis, followed by the sovereign debt crisis, resulted in high unemployment, unsustainable public finances and deepening disparities between Euro Area member states, and underlined the necessity of strengthening economic coordination. In order to lessen the effects of the crises, to prevent further deepening of the economic context and the appearance of new similar situations, the European framework was improved by the provisions of the new economic governance. The aim of this paper is to assess the effects regarding macroeconomic stability within Euro Area member states, achieved under the new economic governance framework. In this respect, the first part of the paper consists in an overview of the provisions imposed through the European Semester, the reformed Stability and Growth Pact and the other elements of the new European governance. In order to assess the achievement of economic stability we analyzed data for Southern Euro Area member states, during 2009-2013, as this group of countries registered most issues during 2013. We took into consideration five important indicators, essential in any economy that form the macroeconomic stability pentagon: economic growth rate, unemployment rate, inflation rate, budgetary balance and current account balance. By comparing the area obtained through the macroeconomic stability pentagon, we conclude on meeting one of the main objectives of the new European governance: economic stability.

When Child Development Meets Economic Game Theory: An Interdisciplinary Approach to Investigating Social Development

Science.gov (United States)

Gummerum, Michaela; Hanoch, Yaniv; Keller, Monika

2008-01-01

Game theory has been one of the most prominent theories in the social sciences, influencing diverse academic disciplines such as anthropology, biology, economics, and political science. In recent years, economists have employed game theory to investigate behaviors relating to fairness, reciprocity, and trust. Surprisingly, this research has not…

The capacity to choose: reformulating the concept of choice in economic theory

Directory of Open Access Journals (Sweden)

Mark S. Peacock

2011-05-01

Full Text Available Despite being conceived as a ‘theory of rational choice’, orthodox economics fails to ascribe to human beings the ability to choose in a meaningful sense, something philosophical approaches to economics have long noted and tried to remedy. Tony Lawson’s critical realism is one attempt at a remedy. If, following Lawson, one conceives of choice as a ‘capacity’ of human beings, critical realist analysis suggests a distinction between humans’ possession and their exercise of this capacity. If one can sustain this distinction, one should be able to distinguish cases in which agents actually exercise their capacity to choose from those in which they do not. Investigation of this distinction does not, however, lead to the desired distinction between such cases. Consequently, a reformulation of the notion of choice is required. An implication for economic theory – namely, the possibility of conceptualizing ‘exploitation’ – is discussed.

Soviet theories of economic demography: a survey.

Science.gov (United States)

Gregory, P

1983-06-01

At this time Soviet demographic scientists maintain the position that population problems may in fact exist temporarily under socialism but that the planning principle will allow society to resolve population problems, through the use of the administrative, moral, and economic levers (subsidies, government policies, propaganda, education) emphasized by Urlanis (1974) and others. For planners to deal effectively with population management, the determinants of fertility and labor force participation must be established. The foundations of Soviet theories of human capital and fertility were laid by several writers. For the sake of simplicity, these are referred to as the Urlanis-Strumilin model, named after 2 pioneer researchers in Soviet demography and manpower economics. The formulations are based upon the writings of Strumlin (1964) and Urlanis (1974), supplemented by writings of numerous other Soviet researchers. Although their models avoid neoclassical terms such as marginal utility and income and price elasticities, they clearly employ these concepts. The Urlanis-Strumilin model, reduced to its basic elements, is a direct household utility maximizing model. The husband and wife, the household decision makers, must select optimal levels of child "quantity," child "quality," leisure, their own human capital (further education and training), and other goods. The Soviet theory recognizes that an increase in household income will increase relatively the demands for income elastic goods. The model postulates that the demand for child quality is inversely related to the price of children. The price of children is the opportunity cost of children, the major element of which is the income foregone by the mother in the course of childbearing and childrearing. The child quantity demand schedule has elastic and inelastic portions. The marginal utility of the 1st child is great. The marginal utilities of higher order children decline substantially. Families with at least 1

Territory development as economic and geographical activity (theory, methodology, practice

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Vitaliy Nikolaevich Lazhentsev

2013-03-01

Full Text Available Accents in a description of theory and methodology of territory development are displaced from distribution of the national benefits on formation of territorial natural and economic systems and organization of economical and geographical activity. The author reveals theconcept of «territory development» and reviews its placein thetheory and methodology of human geography and regionaleconomy. In the articletheindividual directions ofeconomic activity areconsidered. The author has made an attempt to definethesubject matter of five levels of «ideal» territorial and economic systems as a part of objects of the nature, societies, population settlement, production, infrastructure and management. The author’s position of interpretation of sequences of mechanisms of territory development working according to a Nested Doll principle (mechanism of economy, economic management mechanism, controlling mechanism of economy is presented. The author shows the indicators, which authentically define territory development

Theory of social organisations as the methodological basis of economic management of an enterprise

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Ligonenko Larysa O.

2013-03-01

Full Text Available The article provides the author’s interpretation of the “economic management of an enterprise” notion, which is offered to be considered as an integrating and co-ordinating type of management, the main goal of which is ensuring long-term viability of an enterprise. The article considers genesis of organisational theories with respect to necessity, principles, rules, recommendations and procedures of managerial activity. It justifies expediency of formation of the methodological base of economic management of an enterprise on the basis of use of the problem theory of social organisations of V. I. Franchuk. The article describes the author’s concept of the essential characteristics and the process of organisation of economic management of an enterprise. It justifies a necessity of replenishment of classical management functions with three new functions: problem management, development and economic security (risk tolerance. It characterises principles and organisation of functioning of the “social mechanism”, which should be envisaged in the system of economic management of an enterprise.

Social goal-objective formation, democracy and national interest a theory of political economy under fuzzy rationality

CERN Document Server

Dompere, Kofi Kissi

2014-01-01

This book presents the development of a theory of social goal-objective formation and its relationship to national interest and social vision under a democratic decision-choice system with imperfect information structure. It provides a framework for the application of fuzzy logic and its mathematics to the analysis in resolving conflicts in individual preferences in the collective decision-choice space without violence. The book demonstrates how to use fuzzy logic and its mathematics in the study of economics, social sciences and other complex systems. It also presents the use of collaborative tools of opposites, duality, polarity, continuum in fuzzy paradigm with its logic, laws of thought and mathematics in developing a new approach to the theory of political economy in order to enhance the constructs of social decision-choice theory.

Theory and Application of an Economic Performance Measure of Risk

NARCIS (Netherlands)

C. Niu (Cuizhen); X. Guo (Xu); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung)

2017-01-01

textabstractHomm and Pigorsch (2012a) use the Aumann and Serrano index to develop a new economic performance measure (EPM), which is well known to have advantages over other measures. In this paper, we extend the theory by constructing a one-sample confidence interval of EPM, and construct

The government procurement agreement: Implications of economic theory

OpenAIRE

Mattoo, Aaditya

1996-01-01

This paper analyzes the provisions of the new Agreement on Government Procurement (GPA), drawing insights from trade theory and recent developments in the economics of information and law. A central conclusion is that in a world where imperfectly informed procurers purchase from imperfectly competitive firms on behalf of imperfectly informed tax-payers, it is not easy to devise rules which would be optimal in all situations. Nevertheless, the non-discriminatory provisions of the GPA seem to a...

Economic theory and econometric practice

DEFF Research Database (Denmark)

Sauer, Johannes

Parametric efficiency analysis is one of the most investigated areas in applied pro-duction economics. Nevertheless, the vast majority of empirical studies are not ac-companied by a thorough theoretical interpretation of the underlying functional form and the obtained estimates. The robustness......-ciency estimates. The theoretical concerns are verified by empirical applications con-firming the need for a posteriori checking the regularity of the estimated frontier by the researcher and, if necessary, the a priori imposition of the theoretical require-ments. Bootstrapping based stochastic simulations...

Linking Simple Economic Theory Models and the Cointegrated Vector AutoRegressive Model

DEFF Research Database (Denmark)

Møller, Niels Framroze

This paper attempts to clarify the connection between simple economic theory models and the approach of the Cointegrated Vector-Auto-Regressive model (CVAR). By considering (stylized) examples of simple static equilibrium models, it is illustrated in detail, how the theoretical model and its stru....... Further fundamental extensions and advances to more sophisticated theory models, such as those related to dynamics and expectations (in the structural relations) are left for future papers......This paper attempts to clarify the connection between simple economic theory models and the approach of the Cointegrated Vector-Auto-Regressive model (CVAR). By considering (stylized) examples of simple static equilibrium models, it is illustrated in detail, how the theoretical model and its......, it is demonstrated how other controversial hypotheses such as Rational Expectations can be formulated directly as restrictions on the CVAR-parameters. A simple example of a "Neoclassical synthetic" AS-AD model is also formulated. Finally, the partial- general equilibrium distinction is related to the CVAR as well...

ECONOMIC STRATEGY CREATED THROUGH THEORY FOCUSED PLANNING

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Dumitru-Alexandru Bodislav

2011-06-01

Full Text Available The research done for this article is following the elaboration of a moldable model on the actual economic context, in which there are considered continuous learning elements on facts and commercial niches, evaluating a business starting from causality diagram and structuring its processes. Analyzing the evolution of a business and on the market in which they are deploying their activity through quantitative and qualitative measurement methods focused on trends. Testing hypotheses and business suppositions that are the main engine of theory focused on planning, a model of creating a strategic management process that will be developed in this article.

The remarkable transformation of the UV curve in economic theory

NARCIS (Netherlands)

Rodenburg, P.

2011-01-01

The purpose of this paper is to provide an analysis of the impact the Unemployment-Vacancy (UV) curve (or Beveridge curve) had on economic theory and to provide an account of the subsequent radical changes in its place and role over the decades since its first appearance in 1958. The paper traces

Trade policy under imperfect competition: The economics of Russian roulette

NARCIS (Netherlands)

S. Brakman (Steven); J.G.M. van Marrewijk (Charles)

1996-01-01

textabstractNeo-classical economic theory shows that managed trade or protectionism is (almost) always welfare decreasing. However, measurements of the welfare costs of protectionism based on neo-classical models seem to suggest that these costs are quite small. We discuss general new insights and

Trade policy under imperfect competition : The economics of Russian roulette

NARCIS (Netherlands)

Brakman, S; vanMarrewijk, C

Neo-classical economic theory shows that managed trade or protectionism is (almost) always welfare decreasing. However, measurements of the welfare costs of protectionism based on neo-classical models seem to suggest that these costs are quite small. We discuss general new insights and developments

The Context and Values Inherent in Human Capital as Core Principles for New Economic Theory

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Winston P. Nagan

2018-05-01

Full Text Available This paper has a specific focus on the core foundation of New Economic Theory. That is, the focus on human capital and its implications for the theory and method of the new form of political economy. The central issue that is underlined is the importance of scientific and technological innovation and its necessary interdependence on global values and value analysis. The paper discusses the issue of scientific consciousness as a generator of technological value, and places scientific process at the heart of human consciousness. It discusses the complex interdependence of human relational subjectivity, scientific consciousness, and modern science. The paper draws attention to the problems of observation and participation, and the influence of modern quantum physics in drawing attention to aspects of human consciousness that go beyond the points of conventional science, and open up concern for the principle of non-locality. It explores human subjectivity in terms of the way in which “emotionalized behaviors” have effects on scientific objectivity. It also briefly touches on consciousness and its observable scientific role in the possible reconstruction of some aspects of reality. Mention is made of the Copenhagen perspective, the Many Worlds perspective, and the Penrose interpretation. These insights challenge us to explore human consciousness and innovation in economic organization. The discussion also brings in the principle of relational inter-subjectivity, emotion, and consciousness as a potential driver of human capital and value. In short, positive emotions can influence economic decision-making, as can negative emotions. These challenges stress the problem of human relational subjectivity, values, and technology as the tools to better understand the conflicts and potentials of human capital for New Economic Theory. The issue of value-analysis has both a descriptive and normative dimension. Both of these aspects raise important challenges

Network theory and its applications in economic systems

Science.gov (United States)

Huang, Xuqing

This dissertation covers the two major parts of my Ph.D. research: i) developing theoretical framework of complex networks; and ii) applying complex networks models to quantitatively analyze economics systems. In part I, we focus on developing theories of interdependent networks, which includes two chapters: 1) We develop a mathematical framework to study the percolation of interdependent networks under targeted-attack and find that when the highly connected nodes are protected and have lower probability to fail, in contrast to single scale-free (SF) networks where the percolation threshold pc = 0, coupled SF networks are significantly more vulnerable with pc significantly larger than zero. 2) We analytically demonstrates that clustering, which quantifies the propensity for two neighbors of the same vertex to also be neighbors of each other, significantly increases the vulnerability of the system. In part II, we apply the complex networks models to study economics systems, which also includes two chapters: 1) We study the US corporate governance network, in which nodes representing directors and links between two directors representing their service on common company boards, and propose a quantitative measure of information and influence transformation in the network. Thus we are able to identify the most influential directors in the network. 2) We propose a bipartite networks model to simulate the risk propagation process among commercial banks during financial crisis. With empirical bank's balance sheet data in 2007 as input to the model, we find that our model efficiently identifies a significant portion of the actual failed banks reported by Federal Deposit Insurance Corporation during the financial crisis between 2008 and 2011. The results suggest that complex networks model could be useful for systemic risk stress testing for financial systems. The model also identifies that commercial rather than residential real estate assets are major culprits for the

7 CFR 2.63 - Deputy Under Secretary for Research, Education, and Economics.

Science.gov (United States)

2010-01-01

... Economics. 2.63 Section 2.63 Agriculture Office of the Secretary of Agriculture DELEGATIONS OF AUTHORITY BY... Under Secretary for Research, Education, and Economics § 2.63 Deputy Under Secretary for Research, Education, and Economics. Pursuant to § 2.21(a), subject to reservations in § 2.21(b), and subject to policy...

Economic Valuation of European Commercial Fisheries under Good Environmental Status

DEFF Research Database (Denmark)

Goulding, Ian; Hutniczak, Barbara; Münch, Angela

2012-01-01

This paper focuses on assessing the economic impact of achieving Good Environmental Status in the EU’s commercial capture fisheries, being one of the descriptors listed under the MSFD in terms of landed value using 2010 prices. The approach adopted is to assess the values of landings under...... different environmental scenarios, and use the differences between them to highlight the economic impacts of each....

Viability Theory

CERN Document Server

Aubin, Jean-Pierre; Saint-Pierre, Patrick

2011-01-01

Viability theory designs and develops mathematical and algorithmic methods for investigating the adaptation to viability constraints of evolutions governed by complex systems under uncertainty that are found in many domains involving living beings, from biological evolution to economics, from environmental sciences to financial markets, from control theory and robotics to cognitive sciences. It involves interdisciplinary investigations spanning fields that have traditionally developed in isolation. The purpose of this book is to present an initiation to applications of viability theory, explai

Toward behavioural innovation economics – Heuristics and biases in choice under novelty

OpenAIRE

Kate Morrison; Jason Potts

2008-01-01

A framework for ‘behavioural innovation economics’ is proposed here as a synthesis of behavioural economics and innovation economics in the specific context of choice under novelty. We seek to apply the heuristics and biases framework of behavioural economics to the study of the innovation process in order to map and analyze systematic choice failures in the innovation process. We elaborate the distinction between choice under uncertainty and choice under novelty, as well as drawing out the ‘...

Institutional economic theory of assets privatization and nationalization: Basic imperatives

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Sukharev Oleg S.

2015-01-01

Full Text Available Basic provisions, principles and criteria of institutional theory of privatization - nationalization and assets management in economy are introduced. Structural analysis of property, in the aspect of it s two basic elements, public and private property, is carried out and the model of interaction of public and private sectors is introduced. The main attention is focused on the efficiency estimation criteria of the functioning of property and to expediency substantiation of property privatization and nationalization. The optimum principle of property structure in economic system is suggested. peculiarities of privatization and nationalization in economic systems are analyzed proceeding from substantiation of theoretical criteria of privatization and nationalization in economy.

On Socio-Economic Roles and Specialisation

NARCIS (Netherlands)

Gilles, R.P.; Lazarova, E.A.; Ruys, P.H.M.

2006-01-01

Abstract: Xiaokai Yang's theory of economic specialization under increasing returns to scale is a formal development of the fundamental Smith-Young theorem on the extent of the market and the social division of labor. In this theory specialization and, thus, the social division of labor is firmly

Game theory, alive

CERN Document Server

Karlin, Anna R

2016-01-01

This book presents a rigorous introduction to the mathematics of game theory without losing sight of the joy of the subject. This is done by focusing on theoretical highlights (e.g., at least six Nobel Prize winning results are developed from scratch) and by presenting exciting connections of game theory to other fields, such as computer science, economics, social choice, biology, and learning theory. Both classical topics, such as zero-sum games, and modern topics, such as sponsored search auctions, are covered. Along the way, beautiful mathematical tools used in game theory are introduced, including convexity, fixed-point theorems, and probabilistic arguments. The book is appropriate for a first course in game theory at either the undergraduate or graduate level, whether in mathematics, economics, computer science, or statistics. Game theory's influence is felt in a wide range of disciplines, and the authors deliver masterfully on the challenge of presenting both the breadth and coherence of its underlying ...

Was Weber Wrong? A Human Capital Theory of Protestant Economic History. PEPG/07-04

Science.gov (United States)

Becker, Sascha O.; Wohmann, Ludger

2007-01-01

Max Weber attributed the higher economic prosperity of Protestant regions to a Protestant work ethic. We provide an alternative theory, where Protestant economies prospered because instruction in reading the Bible generated the human capital crucial to economic prosperity. County-level data from late 19th-century Prussia reveal that Protestantism…

The neuronal substrate of risky choice: an insight into the contributions of neuroimaging to the understanding of theories on decision making under risk.

Science.gov (United States)

Vorhold, Verena

2008-04-01

This chapter provides an overview of studies in the field of neuroscience that investigate some of the processes and concepts of risk perception, risky choice, and decision making under risk. First, early studies in the field of neuroscience addressing the diminished decision-making abilities in lesion patients are presented. A classical task in this research field is described along with its neural implications. After this, the underlying model, its hypotheses, and neuronal implications are discussed. Different aspects within risky decision making, such as the influence of memory, inhibition, motivation, and personality, on risky choice and the respective underlying neuronal substrate are described. After this, studies of risky decision making in healthy subjects are reviewed. A selection of studies shows that theories focusing on cognitive aspects only have to be enriched in order to allow for additional aspects within risky decision making (e.g., emotion). Next, the classical economic approaches and the development of theories incorporating further aspects within economical decision making and the underlying neuronal substrate will be presented. Finally, research in the field of neuroeconomics, focusing on the role of social decision making and evaluative judgment within risky decision making, is reviewed.

A Treatise for A New Age in Economic Theory: A Review of George Reisman's Capitalism

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Wladimir Kraus

2009-02-01

Full Text Available George Reisman’s magnum opus Capitalism: A Treatise on Economics is a monumental attempt at theoretical integration of leading economic phenomena into one unified whole. Few such books have been published in the history of economics. Still fewer of them contain a comparable proportion of path-breaking innovations both in approach and substance that are integrated in a tightly-spun system of thought that Capitalism does. Yet despite its numerous path-breaking contributions to economic theory, the book has attracted virtually zero attention from the scientific community. History shows that for the most part this has been the fate of all great innovations in science. This review attempts (a to point out reasons why the book’s content is revolutionary, and (b to finally start a serious discussion of its substantive ideas. Specifically, the review focuses in some detail on some of Reisman’s most important innovations which all point the way to a wholly new direction in economic theory that promises to provide the hitherto unseen conformity with empirical reality, analytical rigor, and doctrinal integration.

Impact of economic fluctuations on suicide mortality in Canada (1926-2008): Testing the Durkheim, Ginsberg, and Henry and Short theories.

Science.gov (United States)

Thibodeau, Lise; Lachaud, James

2016-01-01

Three theories have been proposed to explain the relationship between suicide and economic fluctuations, including the Durkheim (nonlinear), Ginsberg (procyclical), and Henry and Short (countercyclical) theories. This study tested the effect of economic fluctuations, measured by unemployment rate, on suicide rates in Canada from 1926 to 2008. Autoregressive integrated moving average time-series models were used. The results showed a significant relationship between suicide and economic fluctuation; this association was positive during the contraction period (1926-1950) and negative in the period of economic expansion (1951-1973). Males and females showed differential effects in the period of moderate unemployment (1974-2008). In addition, the suicide rate of mid-adults (45-64) was most impacted by economic fluctuations. Our study tends to support Durkheim's theory and suggests the need for public health responses in times of economic contraction and expansion.

Modeling the Economic Behavior of Households within the Context of Development of Economic Thought

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Ivanov Roman V.

2017-04-01

Full Text Available The main purpose of the publication is to study formation of the household economic behavior modeling in the context of development of economic thought and methods of the economic-mathematical modeling. The study was carried out under the assumption that, when studying the development of theoretical and methodological foundations of the economic behavior of households one must take into account not only the history of development of economic theory, but also the transformation of attitudes in other areas of human knowledge, in particular the paradigm shift in scientific thinking. It has been specified that the massive use of mathematical methods in economics is associated with formation of the marginal theory and at the same time – with the proliferation of the marginal analysis. At the present stage, the economic behavior of households is being analyzed in the terms of concepts such as neoclassicism, institutionalism and behaviorism. But by dividing the concepts of «individual» and «household», it can be argued that precisely the institutionalism in conjunction with synergistic approach provide the basis for elaboration of strategies for the economic behavior of households, ensuring their economic security.

ECONOMIC NATURE AND THE ROLE OF NATURAL RESOURCES PAYMENTS UNDER SUSTAINABLE ECONOMIC DEVELOPMENT

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A. Zalievska-Shyshak

2014-12-01

Full Text Available The nature and value of natural resources payments under sustainable economic development are revealed. Mechanisms of using of natural resources potential of Ukraine are examined. Payments for use of natural resources is one of the most important components of an economic mechanism of nature management are established. Features of current legislation as to the setting fees for nature management are studied and the necessity of creating an effective institutional support in controlling of tax authorities for the collection of payments for natural resources and their evaluation is proved.

Ukrainian defense industry under economic sanctions is within the Russia's interests

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Victor Andreyevich Mal’gin

2015-03-01

Full Text Available Objective to analyze a correlation between the Russian and the Ukrainian militaryindustrial complexes MIC as well as to determine possibilities for product substitution under economic sanctions. nbsp Methods analysis and synthesis statistical abstract logic methods. Results аn interdependence of Ukrainian and Russian militaryindustrial complexes is revealed the role of economic sanctions as one of the important instruments and twoedged instruments of foreign policy is shown the means of acceleration of development of defenseindustrial complex of Russia are proposed. Scientific novelty the article proves that the Ukrainian defenseindustrial complex under economic sanctions represents serious threat to Russian militaryindustrial complex. The most effective ways of substituting the Ukrainian defense production by the Russian production are determined. Practical value the proposed measures for substituting the Ukrainian military production by the Russian production will under economic sanctions contribute to Russia39s further strengthening of militaryindustrial complex and the enhancement of operational capability of its armed forces. nbsp

The contribution of economic theory to the energy debates; L'apport de la theorie economique aux debats energetiques

Energy Technology Data Exchange (ETDEWEB)

Percebois, J

1999-11-01

This paper proposes a brief overview of the contributions of the micro- and macro-economic theory to the answer of the following four main questions: 1 - how will change the world energy demand with respect to the economic activity and what will be the determining factors of this demand, globally and per energy source? What are the respective roles of energy prices and technological innovations? How will change the petroleum price and what will be the share of economical and political weight in this change? 2 - how passing on this price to the end-user taking into consideration the national preferences? Is there an optimum price when the energy producing, transporting and distributing company is a monopoly? 3 - what is the optimal structure of a network industry? 4 - how to integrate the local and global externalities characteristic of the energy sector in the economical calculus? (J.S.)

Extended producer responsibility for consumer waste: the gap between economic theory and implementation.

Science.gov (United States)

Dubois, Maarten

2012-09-01

Although economic theory supports the use of extended producer responsibility (EPR) to stimulate prevention and recycling of waste, EPR systems implemented in Europe are often criticized as a result of weak incentives for prevention and green product design. Using a stylized economic model, this article evaluates the efficiency of European EPR systems. The model reveals that the introduction of static collection targets creates a gap between theory and implementation. Static targets lead to inefficient market outcomes and weak incentives for prevention and green product design. The minimum collection targets should be complemented with a tax on producers for the non-collected waste fraction. Because such a tax internalizes the cost of waste disposal, more efficient price signals will lead to better incentives for waste management in a complex and dynamic market.

An Application of the Harmonic Oscillator Model to Verify Dunning’s Theory of the Economic Growth

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Marcin Salamaga

2013-09-01

Full Text Available Analogies with mechanisms ruling the natural world have oft en been sought in the course of economic phenomena.Th is paper is also an attempt to combine the physical phenomenon of a harmonious oscillator withthe theory of economic growth by J. H. Dunning (1981. In his theory, Dunning distinguished stages of economicgrowth of countries that imply the dependency between the investment position of countries and theirGDP per capita, while the graph presenting this dependency reminds a trajectory of oscillating motion of adamped harmonic oscillator. Th is analogy has given inspiration to reinterpret the theory of economy on thegrounds of the mechanism of a physical model. In this paper, the harmonious oscillator motion equation wasadapted to the description of dependencies shown in the theory of economic growth by J. H. Dunning. Th emathematical solution of this equation is properly parameterised and parameters are estimated with the useof the Gauss-Newton algorithm. Th e main objective of this paper is to allocate a specifi c stage in the economicgrowth to each country on the basis of the values of parameter estimations of the proposed cyclical models ofchanges in the net investment indicator.

REFERENCES OF THE NEW THEORY OF TRADE AND ECONOMIC GROWTH

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Spiridon Pralea

2012-12-01

Full Text Available This paper shows that the dynamization of the traditional theory of international trade through the study of growth effects on the foreign trade in the framework of neoclassical analysis, alongsidethe approach with the Keynesian toolkit of the role of foreign trade as a factor of growth, have constituted the main aspects of the new theory of trade and economic growth. The “new theory” basically represents a set of theories and models of the type “growth-led export” or “export-led growth”, which explain the complex role of foreign trade in the dynamic of development, the new segments of international trade, and also provides base for trade strategies for development. Their typology includes: “import-substitutionstrategy”, “export-promotion strategy”, and more recently “outward oriented strategy”. In the context of regionalization and globalization of competition the author believes most appropriate the states’ option for a “outward - oriented competitive development strategy”.

Optimal control theory applications to management science and economics

CERN Document Server

Sethi, Suresh P

2006-01-01

Optimal control methods are used to determine the best ways to control a dynamic system. This book applies theoretical work to business management problems developed from the authors' research and classroom instruction. The thoroughly revised new edition has been refined with careful attention to the text and graphic material presentation. Chapters cover a range of topics including finance, production and inventory problems, marketing problems, machine maintenance and replacement, problems of optimal consumption of natural resources, and applications of control theory to economics. The book in

Economic fluctuations in a small economy with two productive sectors under a floating exchange rate regime

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José Ustorgio Mora Mora

2013-06-01

Full Text Available This paper presents a theoretical model of aggregate supply and demand in a small economy with two productive sectors, under a flexible exchange regime and imperfect capital mobility. Only one of the production sectors is assumed to produce an exportable commodity sold at world market prices, while the production of the other sector is assumed to supply the domestic market. This model helps to explain how the impact of both domestic (economic policy, productivity, etc. and foreign (changes in exchange terms shocks is spread. In every case studied, results show that real output increases consistently with those cases postulated by economic theory. Conversely, the effects on the price level, the exchange rate and the real interest rate are ambiguous. In terms of domestic shocks, fiscal or monetary policy may be seen as a way to stabilize or stimulate the economy but the costs involved raise the price level.

Örn B. Bodvarsson & Hendrik Van den Berg, The Economics of Immigration: Theory and Policy

OpenAIRE

DOUGLAS, Kacey

2015-01-01

Abstract. The Economics of Immigration: Theory and Policy (Second edition)is designed as a survey book that addresses all facets of immigration. Though there is a great amount of information regarding immigration, the complexity of the topic has resulted in an absence of any comprehensive book the covers a wide range of issues. The book covers immigration theory, empirical evidence regarding those theories, special issues in immigration, and immigration policy throughout the world. Designed a...

Building Better Ecological Machines: Complexity Theory and Alternative Economic Models

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Jess Bier

2016-12-01

Full Text Available Computer models of the economy are regularly used to predict economic phenomena and set financial policy. However, the conventional macroeconomic models are currently being reimagined after they failed to foresee the current economic crisis, the outlines of which began to be understood only in 2007-2008. In this article we analyze the most prominent of this reimagining: Agent-Based models (ABMs. ABMs are an influential alternative to standard economic models, and they are one focus of complexity theory, a discipline that is a more open successor to the conventional chaos and fractal modeling of the 1990s. The modelers who create ABMs claim that their models depict markets as ecologies, and that they are more responsive than conventional models that depict markets as machines. We challenge this presentation, arguing instead that recent modeling efforts amount to the creation of models as ecological machines. Our paper aims to contribute to an understanding of the organizing metaphors of macroeconomic models, which we argue is relevant conceptually and politically, e.g., when models are used for regulatory purposes.

The contribution of economic theory to the energy debates; L'apport de la theorie economique aux debats energetiques

Energy Technology Data Exchange (ETDEWEB)

Percebois, J.

1999-11-01

This paper proposes a brief overview of the contributions of the micro- and macro-economic theory to the answer of the following four main questions: 1 - how will change the world energy demand with respect to the economic activity and what will be the determining factors of this demand, globally and per energy source? What are the respective roles of energy prices and technological innovations? How will change the petroleum price and what will be the share of economical and political weight in this change? 2 - how passing on this price to the end-user taking into consideration the national preferences? Is there an optimum price when the energy producing, transporting and distributing company is a monopoly? 3 - what is the optimal structure of a network industry? 4 - how to integrate the local and global externalities characteristic of the energy sector in the economical calculus? (J.S.)

Overview of the Main Theories on the Economic Effects of Public Indebtedness

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Irina Bilan

2016-05-01

Full Text Available The paper briefly reviews the main theories formulated over time on the economic effects of public indebtedness, with the aim to highlight their common and divergent points, the arguments they rely upon, as well as their relevance, given the current economic environment. Three major views are considered, namely the classical one, the Keynesian one and the view of neoliberal economists (monetarist economists and representatives of the school of rational expectations. The comparative approach of the different views allowed us to shape some criteria of decision which may prove useful for public policymakers in formulating public debt policies conducive to economic growth: public indebtedness should not become common practice but be reserved for those situations in which the economy is confronted with unusual phenomena, such as economic downturns; borrowed resources should be used especially on those destinations which create added value in the economy, such as public investment; public debt should not accumulate at a fast pace and should be kept within reasonable limits, to avoid possible side effects on economic growth.

Quantum economics

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Vukotić Veselin

2011-01-01

Full Text Available The globalization is breaking-down the idea of national state, which was the base for the development of economic theory which is dominant today. Global economic crisis puts emphasis on limited possibilities of national governments in solving economic problems and general problems of society. Does it also mean that globalization and global economic crisis points out the need to think about new economic theory and new understanding of economics? In this paper I will argue that globalization reveals the need to change dominant economic paradigm - from traditional economic theory (mainstream with macroeconomic stability as the goal of economic policy, to the “quantum economics“, which is based on “economic quantum” and immanent to the increase of wealth (material and non-material of every individual in society and promoting set of values immanent to the wealth increase as the goal of economic policy. Practically the question is how we can use global market for our development!

Economic activity in agriculture in the perspective of embeddedness theory: The case of Poland

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Dudek Michał

2016-01-01

Full Text Available The paper presents the concept of embeddedness of economic activity in relation to agriculture. In this perspective, economic activity can be considered dependent on cognitive structures, structures of social relations, culture, and political institutions. It has been concluded that the idea of embeddedness can be an interesting and useful analytical tool for the analysis of economic activity undertaken by farmers. The article presents an analysis of the state of the art, as well uses selected information and data on the methodology of panel surveys carried out by the Institute of Agricultural and Food Economics - National Research Institute. Based on the analysis of the embeddedness theory, it is argued that embeddedness is not a coherent theoretical concept but rather a potential framework for investigating various economic issues. One of these issues is agricultural activity. Embeddedness framework constitutes a scheme which could organize an alternative approach to economic actions to mainstream agriculture economics.

An economic theory-based explanatory model of agricultural land-use patterns: The Netherlands as a case study

NARCIS (Netherlands)

Diogo, V.; Koomen, E.; Kuhlman, T.

2015-01-01

An economic theory-based land-use modelling framework is presented aiming to explain the causal link between economic decisions and resulting spatial patterns of agricultural land use. The framework assumes that farmers pursue utility maximisation in agricultural production systems, while

Conditional Economic Incentives for Reducing HIV Risk Behaviors: Integration of Psychology and Behavioral Economics

Science.gov (United States)

Operario, Don; Kuo, Caroline C.; Sosa-Rubí, Sandra G.; Gálarraga, Omar

2014-01-01

Objective This paper reviews psychology and behavioral economic approaches to HIV prevention, and examines the integration and application of these approaches in conditional economic incentive (CEI) programs for reducing HIV risk behavior. Methods We discuss the history of HIV prevention approaches, highlighting the important insights and limitations of psychological theories. We provide an overview of the theoretical tenets of behavioral economics that are relevant to HIV prevention, and utilize CEIs as an illustrative example of how traditional psychological theories end behavioral economics can be combined into new approaches for HIV prevention. Results Behavioral economic interventions can complement psychological frameworks for reducing HIV risk by introducing unique theoretical understandings about the conditions under which risky decisions are amenable to intervention. Findings from illustrative CEI programs show mixed but generally promising effects of economic interventions on HIV and STI prevalence, HIV testing, HIV medication adherence, and drug use. Conclusion CEI programs can complement psychological interventions for HIV prevention and behavioral risk reduction. To maximize program effectiveness, CEI programs must be designed according to contextual and population-specific factors that may determine intervention applicability and success. PMID:24001243

Conditional economic incentives for reducing HIV risk behaviors: integration of psychology and behavioral economics.

Science.gov (United States)

Operario, Don; Kuo, Caroline; Sosa-Rubí, Sandra G; Gálarraga, Omar

2013-09-01

This article reviews psychology and behavioral economic approaches to HIV prevention, and examines the integration and application of these approaches in conditional economic incentive (CEI) programs for reducing HIV risk behavior. We discuss the history of HIV prevention approaches, highlighting the important insights and limitations of psychological theories. We provide an overview of the theoretical tenets of behavioral economics that are relevant to HIV prevention, and utilize CEIs as an illustrative example of how traditional psychological theories and behavioral economics can be combined into new approaches for HIV prevention. Behavioral economic interventions can complement psychological frameworks for reducing HIV risk by introducing unique theoretical understandings about the conditions under which risky decisions are amenable to intervention. Findings from illustrative CEI programs show mixed but generally promising effects of economic interventions on HIV and sexually transmitted infection (STI) prevalence, HIV testing, HIV medication adherence, and drug use. CEI programs can complement psychological interventions for HIV prevention and behavioral risk reduction. To maximize program effectiveness, CEI programs must be designed according to contextual and population-specific factors that may determine intervention applicability and success. PsycINFO Database Record (c) 2013 APA, all rights reserved.

An extensive exploration of theories of foreign direct investment

Directory of Open Access Journals (Sweden)

Patricia Lindelwa Makoni

2015-06-01

Full Text Available The purpose of this study was to identify and examine the key foreign direct investment theories. The history and origins of FDI theories were considered, prior to dwelling in-depth on the theories themselves. FDI theories were classified under macroeconomic and microeconomic perspectives. Macroeconomic FDI theories emphasize country-specific factors, and are more aligned to trade and international economics, whereas microeconomic FDI theories are firm-specific, relate to ownership and internalisation benefits and lean towards an industrial economics, market imperfections bias. FDI theories are fairly complex to explain and apply. This paper is purely qualitative in nature, and attempted to explain the different FDI theories by providing an analyisis of the key theories used in many scholarly works

On the macro-economic impacts of climate change under informational failures

OpenAIRE

CAO, Ruixuan; Gohin, Alexandre

2012-01-01

Although the sources, extent and physical impacts of the future climate change are highly uncertain, available dynamic economic assessments implicitly assume that economic agents perfectly know them. Perfect foresight, rational expectations or active learning are standard assumptions underlying simulated results. To the contrary, this paper builds on the assumption that economic agents may suffer for a while from limited knowledge about the average and variability of physical impa...

Is Teaching Neoclassical Economics as "the" Science of Economics Moral?

Science.gov (United States)

Parvin, Manoucher

1992-01-01

Discusses the morality of teaching neoclassical theory as the only science of economics. Argues that the teaching of neoclassical theory violates moral principles unless each and every attribute of neoclassical theory is proven superior to corresponding attributes of competing theories. Criticizes neoclassical economics for teaching what rather…

Contemporary Theory Sebagai Pendekatan Alternatif Dalam Penyusunan Laporan Konsolidasi

OpenAIRE

Juniarti, Juniarti

2001-01-01

Consolidated financial statements must be prepared if one of the combining entities obtain control over another. These reports should not be biased in favor of any group and must be based on the underlying substance of the economic events. There are some approaches or methods in preparing consolidated financial statements such as parent company theory, entity theory, proportional consolidation and contemporary theory. Certain problems and inconsistency in accounting procedures under each...

STIGLER’S INFLUENTIAL CONTRIBUTION TO ECONOMIC THOUGHT

Directory of Open Access Journals (Sweden)

Artidiatun Adji

2017-01-01

Full Text Available This paper analyzes George J. Stigler’s influential contributions to economic ideas, specifically on industrial structures, the functioning of markets, the causes and effects of public regulation, the economics of information, and on the development of economic thought. Stigler’s most influential contribution to economic thought came in his work on information theory. Treating information as a valuable commodity, he explained why prices differ for identical goods. From his work, many other theories have been built to explain economic behavior. A considerable number of works on decision making under uncertainty could not have progressed without an understanding of the role of information. His swing of the pendulum in economic regulation constitutes a great turnabout. He started research, known as public choice, which assumes that government policymakers are driven by self-interest rather than pure concern for the public’s welfare. His views have now become those of the mainstream.

Thirty Years of Prospect Theory in Economics: A Review and Assessment

OpenAIRE

Nicholas C. Barberis

2013-01-01

In 1979, Daniel Kahneman and Amos Tversky, published a paper in Econometrica titled "Prospect Theory: An Analysis of Decision under Risk." The paper presented a new model of risk attitudes called "prospect theory," which elegantly captured the experimental evidence on risk taking, including the documented violations of expected utility. More than 30 years later, prospect theory is still widely viewed as the best available description of how people evaluate risk in experimental settings. Howev...

THE THEORY OF NON-PROFIT ALTERNATIVE ECONOMY AS THE BASIS FOR A NEW ECONOMIC OUTLOOK

Directory of Open Access Journals (Sweden)

V. V. Myamlin

2009-03-01

Full Text Available The conflicts of existing financial-and-economic model of management are revealed. The groundlessness of profit-financial economic model based only on a profit approach is shown. The alienation of this model from general laws of the Nature is demonstrated. As an argument of absence of additional product the scheme of rotation of substances in the Nature is given. It is suggested to build the laws of economics starting not from idea considerations of those or other social groups but from general laws of the Nature. A new basic economic ideology – the theory of non-profitable economy – is proposed.

Differences in economic development in rural regions of advanced countries: an overview and critical analysis of theories

NARCIS (Netherlands)

Terluin, I.J.

2003-01-01

This article provides an overview and critical analysis of theories on economic development in rural regions in advanced countries. For this purpose, we have consulted literature in regional economics and the multidisciplinary field of rural studies. In order to analyse to which extent these

EVOLUTION OF THEORIES AND EMPIRICAL MODELS OF A RELATIONSHIP BETWEEN ECONOMIC GROWTH, SCIENCE AND INNOVATIONS (PART I

Directory of Open Access Journals (Sweden)

Kaneva M. A.

2017-12-01

Full Text Available This article is a first chapter of an analytical review of existing theoretical models of a relationship between economic growth / GRP and indicators of scientific development and innovation activities, as well as empirical approaches to testing this relationship. Aim of the paper is a systematization of existing approaches to modeling of economic growth geared by science and innovations. The novelty of the current review lies in the authors’ criteria of interconnectedness of theoretical and empirical studies in the systematization of a wide range of publications presented in a final table-scheme. In the first part of the article the authors discuss evolution of theoretical approaches, while the second chapter presents a time gap between theories and their empirical verification caused by the level of development of quantitative instruments such as econometric models. The results of this study can be used by researchers and graduate students for familiarization with current scientific approaches that manifest progress from theory to empirical verification of a relationship «economic growth-innovations» for improvement of different types of models in spatial econometrics. To apply these models to management practices the presented review could be supplemented with new criteria for classification of knowledge production functions and other theories about effect of science on economic growth.

The economics of climate change and the theory of discounting

International Nuclear Information System (INIS)

Philibert, C.

1999-01-01

This paper confronts the theory of discounting with climate change economics. Standard discounting would give long-term damages a very low present value. On the other hand, low discount rates would imply more sacrifices for present generations, although future generations may be richer. And using multiple rates would lead to economic inefficiencies. The paper first shows that arguments favouring a low or zero discount rate in general are weak, even from an ethical point of view. It goes on by considering different arguments in favour of discount rates decreasing over time, and by recalling the argument that non-reproducible environmental assets should be given a value growing over time. Through the example of climate change, it finally shows that the latter argument not only implies that the costs of damages associated to climate change should not be underestimated, but also reinforce the legitimacy of using decreasing discount rates. (author)

Real analysis with economic applications

CERN Document Server

Ok, Efe A

2011-01-01

There are many mathematics textbooks on real analysis, but they focus on topics not readily helpful for studying economic theory or they are inaccessible to most graduate students of economics. Real Analysis with Economic Applications aims to fill this gap by providing an ideal textbook and reference on real analysis tailored specifically to the concerns of such students. The emphasis throughout is on topics directly relevant to economic theory. In addition to addressing the usual topics of real analysis, this book discusses the elements of order theory, convex analysis, optimization, correspondences, linear and nonlinear functional analysis, fixed-point theory, dynamic programming, and calculus of variations. Efe Ok complements the mathematical development with applications that provide concise introductions to various topics from economic theory, including individual decision theory and games, welfare economics, information theory, general equilibrium and finance, and intertemporal economics. Moreover, a...

CONTEMPORARY THEORY SEBAGAI PENDEKATAN ALTERNATIF DALAM PENYUSUNAN LAPORAN KONSOLIDASI

OpenAIRE

Juniarti Juniarti

2001-01-01

Consolidated financial statements must be prepared if one of the combining entities obtain control over another. These reports should not be biased in favor of any group and must be based on the underlying substance of the economic events. There are some approaches or methods in preparing consolidated financial statements such as parent company theory, entity theory, proportional consolidation and contemporary theory. Certain problems and inconsistency in accounting procedures under each meth...

Economic evaluation of private power production under uncertainties

Energy Technology Data Exchange (ETDEWEB)

Weiguo Xing; Wu, F.F. [University of Hong Kong (China). Centre for Electrical Energy Systems

2003-02-01

Private power production is becoming an increasingly important source of electricity generation. In developing countries, build-operate-transfer (BOT) arrangement has emerged as a dominant form of private investment. Pricing private power production at its avoided cost is the breakeven point for the utility in economic evaluation, and uncertainties must be taken into account. In this paper, an approach of calculating the breakeven cost to the utility of a BOT power plant whose contract lasts for 10-25 years is proposed. The proposed approach requires the computation of production costs from long-term generation expansion planning (GEP) under future uncertainties. To facilitate the inclusion of constraints introduced by BOT plants in GEP and uncertainties, a genetic algorithm method is utilized in GEP. The breakeven cost is a useful measure in the economic evaluation of BOT power plants. An example is presented to illustrate the economic evaluation of BOT plants using the concept of breakeven cost.(author)

The contribution of several Nobel Laureates in the development of the Theory of general economic equilibrium

Directory of Open Access Journals (Sweden)

Florentina Xhelili Krasniqi

2016-12-01

Full Text Available Nobel Laureates with their contributions to the development of the theory of general equilibrium have enabled this theory to be one of the most important for theoretical and practical analysis of the overall economy and the efficient use of economic resources. Results of the research showing that contributions of Nobel Laureates in the economy belong to two main frameworks of development of the general equilibrium theory: one was the mathematical model of general equilibrium developed by John R. Hicks (1939, Kenneth J.Arrow (1951 and Gerard Debreu (1954 and second frames of general equilibrium belongs to Paul A. Samuelson (1958. To highlight the contributions of these Nobel laureates in the development of the theory of general equilibrium have been selected and are presented in the paper some views, estimates and assumptions that have contributed not only in solving concrete problems, but also to the development of economic science in general. Their works represent a synthesis of theoretical and practical aspects of treatment of general equilibrium which are the starting point for further research in this field.

Morals Matter in Economic Games

Science.gov (United States)

Brodbeck, Felix C.; Kugler, Katharina G.; Reif, Julia A. M.; Maier, Markus A.

2013-01-01

Contrary to predictions from Expected Utility Theory and Game Theory, when making economic decisions in interpersonal situations, people take the interest of others into account and express various forms of solidarity, even in one-shot interactions with anonymous strangers. Research in other-regarding behavior is dominated by behavioral economical and evolutionary biological approaches. Psychological theory building, which addresses mental processes underlying other-regarding behavior, is rare. Based on Relational Models Theory (RMT, [1]) and Relationship Regulation Theory (RRT, [2]) it is proposed that moral motives influence individuals’ decision behavior in interpersonal situations via conscious and unconscious (automatic) processes. To test our propositions we developed the ‘Dyadic Solidarity Game’ and its solitary equivalent, the ‘Self-Insurance Game’. Four experiments, in which the moral motives “Unity” and “Proportionality” were manipulated, support the propositions made. First, it was shown that consciously activated moral motives (via framing of the overall goal of the experiment) and unconsciously activated moral motives (via subliminal priming) influence other-regarding behavior. Second, this influence was only found in interpersonal, not in solitary situations. Third, by combining the analyses of the two experimental games the extent to which participants apply the Golden Rule (“treat others how you wish to be treated”) could be established. Individuals with a “Unity” motive treated others like themselves, whereas individuals with a “Proportionality” motive gave others less then they gave themselves. The four experiments not only support the assumption that morals matter in economic games, they also deliver new insights in how morals matter in economic decision making. PMID:24358115

Morals matter in economic games.

Directory of Open Access Journals (Sweden)

Felix C Brodbeck

Full Text Available Contrary to predictions from Expected Utility Theory and Game Theory, when making economic decisions in interpersonal situations, people take the interest of others into account and express various forms of solidarity, even in one-shot interactions with anonymous strangers. Research in other-regarding behavior is dominated by behavioral economical and evolutionary biological approaches. Psychological theory building, which addresses mental processes underlying other-regarding behavior, is rare. Based on Relational Models Theory (RMT, [1] and Relationship Regulation Theory (RRT, [2] it is proposed that moral motives influence individuals' decision behavior in interpersonal situations via conscious and unconscious (automatic processes. To test our propositions we developed the 'Dyadic Solidarity Game' and its solitary equivalent, the 'Self-Insurance Game'. Four experiments, in which the moral motives "Unity" and "Proportionality" were manipulated, support the propositions made. First, it was shown that consciously activated moral motives (via framing of the overall goal of the experiment and unconsciously activated moral motives (via subliminal priming influence other-regarding behavior. Second, this influence was only found in interpersonal, not in solitary situations. Third, by combining the analyses of the two experimental games the extent to which participants apply the Golden Rule ("treat others how you wish to be treated" could be established. Individuals with a "Unity" motive treated others like themselves, whereas individuals with a "Proportionality" motive gave others less then they gave themselves. The four experiments not only support the assumption that morals matter in economic games, they also deliver new insights in how morals matter in economic decision making.

Morals matter in economic games.

Science.gov (United States)

Brodbeck, Felix C; Kugler, Katharina G; Reif, Julia A M; Maier, Markus A

2013-01-01

Contrary to predictions from Expected Utility Theory and Game Theory, when making economic decisions in interpersonal situations, people take the interest of others into account and express various forms of solidarity, even in one-shot interactions with anonymous strangers. Research in other-regarding behavior is dominated by behavioral economical and evolutionary biological approaches. Psychological theory building, which addresses mental processes underlying other-regarding behavior, is rare. Based on Relational Models Theory (RMT, [1]) and Relationship Regulation Theory (RRT, [2]) it is proposed that moral motives influence individuals' decision behavior in interpersonal situations via conscious and unconscious (automatic) processes. To test our propositions we developed the 'Dyadic Solidarity Game' and its solitary equivalent, the 'Self-Insurance Game'. Four experiments, in which the moral motives "Unity" and "Proportionality" were manipulated, support the propositions made. First, it was shown that consciously activated moral motives (via framing of the overall goal of the experiment) and unconsciously activated moral motives (via subliminal priming) influence other-regarding behavior. Second, this influence was only found in interpersonal, not in solitary situations. Third, by combining the analyses of the two experimental games the extent to which participants apply the Golden Rule ("treat others how you wish to be treated") could be established. Individuals with a "Unity" motive treated others like themselves, whereas individuals with a "Proportionality" motive gave others less then they gave themselves. The four experiments not only support the assumption that morals matter in economic games, they also deliver new insights in how morals matter in economic decision making.

The normative method of positive economic theory El método normativo de la teoria económica positiva

Directory of Open Access Journals (Sweden)

Benetti Carlo

1997-06-01

Full Text Available Economists tend to designate as normative economics that part of the theory which, according to the theorems of welfare or efficiency, create the foundation of political economy. This article defends two theses: first, that the normative is not only a part of economic theory, but also the method of building the positive economic ideas in the currently dominant neoclassical theory. This method allows that theory to claim to unify economic thought, eliminating the possibility and the necessity for alternative approaches. Nevertheless, and this is the second thesis, there are no legitimate theoretical reasons to accept this methnodology; thus it is impera tive to build a new basic theory.Los economistas suelen designar como economía normativa aquella parte de la teoría que, de acuerdo con los teoremas de bienestar o de la eficiencia, crea el fundamento de la política económica. Este artículo defiende dos tesis: primera, que lo normativo no sólo es una parte de la teoría económica sino, también, el método de construcción de las ideas economicas positivas de la teoría neoclásica hoy dominante. Este método permite que esta teoría pretenda unificar el pensamiento económico eliminando la posiilidad y la necesidad de enfoques alternativos. Sin embargo, y ésta la segunda tesis, no hay razones teóricas legítimas para aceptar esa metodología; de modo que es imperioso construir una nueva teoría básica.

ON PRICE-MAKING CONTRACTS AND ECONOMIC THEORY: RETHINKING BERTRAND AND EDGEWORTH

OpenAIRE

Robert R. Routledge

2012-01-01

A problematic issue in economic theory is the study of price determination. Two distinct approaches to this difficult topic have been taken: (i) in Bertrand competition it is assumed sellers enter the market with a commitment to supply all demand forthcoming from buyers (ii) in Edgeworth competition sellers quote prices with no commitment to supply more than their competitive supply. Both these types of market contract struggle to provide credible pricemaking foundations for perfect competiti...

Advances in mathematical economics

CERN Document Server

Maruyama, Toru

2015-01-01

The series is designed to bring together those mathematicians who are seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking effective mathematical tools for their research. A lot of economic problems can be formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories.

Advances in mathematical economics

CERN Document Server

Maruyama, Toru

2014-01-01

A lot of economic problems can be formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories. The series is designed to bring together those mathematicians who are seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking effective mathematical tools for their research.

Advances in mathematical economics

CERN Document Server

Yamazaki, Akira

2006-01-01

A lot of economic problems can formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories. The series is designed to bring together those mathematicians who were seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking for effective mathematical tools for their researchers.

Advances in mathematical economics

CERN Document Server

Yamazaki, Akira

2006-01-01

A lot of economic problems can formulated as constrained optimizations and equilibration of their solutions.Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories. The series is designed to bring together those mathematicians who were seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking for effective mathematical tools for their researchers.

Advances in mathematical economics

CERN Document Server

Maruyama, Toru

2017-01-01

The series is designed to bring together those mathematicians who are seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking effective mathematical tools for their research. A lot of economic problems can be formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories.

Advances in mathematical economics

CERN Document Server

Maruyama, Toru

2016-01-01

The series is designed to bring together those mathematicians who are seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking effective mathematical tools for their research. A lot of economic problems can be formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories.

The contribution of several Nobel Laureates in the development of the Theory of general economic equilibrium

OpenAIRE

Florentina Xhelili Krasniqi; Rahmie Topxhiu; Donat Rexha

2016-01-01

Nobel Laureates with their contributions to the development of the theory of general equilibrium have enabled this theory to be one of the most important for theoretical and practical analysis of the overall economy and the efficient use of economic resources. Results of the research showing that contributions of Nobel Laureates in the economy belong to two main frameworks of development of the general equilibrium theory: one was the mathematical model of general equilibrium developed by J...

Basic Exchange Rate Theories

NARCIS (Netherlands)

J.G.M. van Marrewijk (Charles)

2005-01-01

textabstractThis four-chapter overview of basic exchange rate theories discusses (i) the elasticity and absorption approach, (ii) the (long-run) implications of the monetary approach, (iii) the short-run effects of monetary and fiscal policy under various economic conditions, and (iv) the transition

The Remarkable Place of the UV-Curve in Economic Theory

OpenAIRE

Rodenburg, Peter

2007-01-01

The purpose of this paper is to provide an analysis of the impact the UV-curve had on economic theory and to provide an account of the subsequent radical changes in its place and role over the decades since its first appearance in 1958. The paper traces the historical development of the UV-curve and argues that the role of the UV-curve has changed from a measuring device to a graphical representation of full employment to an axiom necessary for matching models of unemployment. This changing r...

Evolution of the global economic science as a factor of forming the expectations of economic agents

Directory of Open Access Journals (Sweden)

Valeriy Vladimirovich Shlychkov

2015-09-01

Full Text Available Objective to reveal the correlation between the level of economic system development and the adequacy of economic ideas and conceptions at particular historic periods to define the role of economic theory in generating economic knowledge and the degree of its influence on economic subjects39 behavior under permanent changes in technology setups and evolutionary development of economic systems. Methods the research methodology was based on ensuring the uniformity of logical and historical approaches the research methods were widely used descriptive analysis and synthesis deduction and induction generalization observation prediction scientific abstraction statistical analysis system analysis and techniques of grouping and classification methods of comparative historical and interdisciplinary analysis expert judgment the combination of these methods allowed to ensure the accuracy of the research and the validity of conclusions. Results the correlation was revealed between the level of economic system development and the adequacy of economic ideas and concepts at certain historical periods the significant role of economic theory in shaping the optimal behavior of economic entitieswas identified the purpose of the economic theory was statedass providing the evolutionary development of our civilization through the process of scientifictheoretical support of business activities of the society. Scientific novelty the main theoretical and methodological approaches were identified to the formation of economic agents expectations to obtain economic knowledge the trends are revealed of expansion and qualitative change of the range of issues facing economistsresearchers in the development of postindustrial society the authorsrsquo interpretation is proposed of the notion ldquoeconomic agentsrsquoexpectationrdquo in which public expectations of economic science are viewed as quotthe formed society need for scientifically grounded economic knowledgequot it

A parameter-free analysis of the utility of money for the general population under prospect theory

NARCIS (Netherlands)

Booij, A.S.; van de Kuilen, G.

2009-01-01

Extensive data has convincingly demonstrated that expected utility, the reigning economic theory of rational decision making, fails descriptively. This descriptive failure casts doubt on the validity of classical utility measurements. Prospect theory can better explain choice behaviour because it

Economics of Higher Education under Occupation: The Case of Palestine

Directory of Open Access Journals (Sweden)

Sam Abd Al-Qadir Alfoqahaa

2015-10-01

Full Text Available Through some extremely difficult experiences, education in general and Higher Education in particular has remained a constant focus of resources in Palestine.  Due to the ongoing occupation of Palestine, Palestinian universities could not expect to contribute significantly to economic development in the same way as other institutions around the world. However, the establishment and development of universities in Palestine meant that Palestine was investing in Palestinians, and, for reasons discussed in this paper, the development represented a clear breakthrough to be celebrated throughout Palestinian society. Most of the previous studies on the Economics of Higher Education (HE have not explicitly dealt with the Economics of Higher Education under occupation, especially in Palestine, neglecting much of the broader context and strategic impact of Palestinian Higher Education. This research investigates in depth Palestinian HE socio-economic outcomes for Palestinians, bringing to the light the meaning of HE under occupation that goes beyond mere economic impact to include its impact on Palestinians' human capital, dignity, and national identity reflecting the unique case of Palestine. This research reveals that from very early on it was clear that Palestinian Higher Education could not give the economy a boost, but that universities did give people a pride in Palestine, which, given the conditions of a brutal military occupation that increasingly separated one Palestinian from the next, amounted to quite a significant achievement. It demonstrated the central role Palestinian HE plays in the life of Palestinians as it is goes beyond means of economic growth to means of survival, building human capital, and maintaining people's dignity and national identity.

Economic Creativity Development

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Nasseroddin Kazemi Haghighi

2014-06-01

Full Text Available As a new concept in the literature, the authors discuss the conception of “Economic Creativ-ity” (EC. The authors explain psychological characteristics of “Economic Creativity”: atti-tudes, motivation, personality traits, and abili-ties. They propose a design based on Emotion of Thought Theory (Kazemi, 2007 for Economic Creativity Development (ECD. This theory is an affective-cognitive approach that tries to ex-plain creativity. Emotion of Thought involves “Poyaei” and “Bitabi” (in Persian meaning Dy-namism and Restlessness. According to this theory, ECD relates to connections between emotion and thought. The ECD includes pro-moting individual readiness, utilization of eco-nomic resources, attitude towards economic af-fairs development, enhancing the utilization of economic experiences, conducting economic ac-tivity education, development of economic thinking and development of emotion of thought.

FAMILY’S ECONOMIC LEVEL AND CULTURE CORRELATE WITH NUTRITIONAL STATUS OF CHILDREN UNDER FIVE YEARS

Directory of Open Access Journals (Sweden)

Abdul Muhith

2017-01-01

Full Text Available Introduction: Nutrition is an important thing for human life. Variety in family’s economic level and culture have effect on family’s eating habit. Family with higher economic status have big opportunity to met under fi ve year’s nutrition. Cultural diversity on each family has an impact on the difference of raw food selection, processing methods, and presentation of food. The purpose of this study was to determine the correlation between family’s economic level and culture with nutritional status of children under fi ve year. Method: Research design was observational analytic with cross sectional approach. The population were mother and their children under fi ve years at Desa Jatigono Kunir, Kabupaten Lumajang. Sampel were 184 respondents, taken by using cluster sampling. Independent variables were family’s economic level and culture. Dependent variable was nutritional status of children under fi ve years. Data were collected by using questionnaire and observational sheet. Then, data were analyzed by using Spearman Rho Test with α<0.05. Result: The results showed that 140 (76.1% respondents have low economic level, 105 (57.1% respondents have negative culture in children’s nutrition, and 89 (48% respondents have good nutritional status. The result of Spearman-rho test showed that family’s economic level (p=0.000 and culture (0.019 have correlated with nutritional status of children under five years. Discussion: It can be concluded that family’s economic level and culture have correlated with nutritional status of children under fi ve years. Nurses should develop health education and counseling to improve family’s knowledge about nutrition, so children will have good nutritional status. Keywords: economic level, family’s culture, nutritional status, children under five years

Economic Equilibrium and Soviet Economic Reform

OpenAIRE

Herbert E. Scarf

1991-01-01

The paper, prepared for a Roundtable on Major Economic Problems in the U.S. and the U.S.S.R., discusses some aspects of price theory ñ in particular, the theory of general equilibrium -ñ which may offer some theoretical insights about the economic problems to be encountered during the transition from Socialism to private markets in the Soviet Union.

Economic Efficiencyo on Limited Liability Companies: some Considerations on Economic Analysis of Law

Directory of Open Access Journals (Sweden)

Martinho Martins Botelho

2016-12-01

Full Text Available This paper presents briefly a theoretical approach about limited efficiency from the perspective Economic Analysis of Law (EAL of the limited liability company by examining initially the question of limited liability, under the scrutiny of the pro-rata theory and model manager-investor.  It approaches the liability of directors of corporations incorporated in the form of a limited company. Subsequently, its theoretical approaches are about the analysis of the first generation of agency theory (contract manager-investor incentives, the hypothesis of Modigliani-Miller irrelevance, and structures of great property.

Neoclassical economic orthodoxy and the need for a new post-crisis economic paradigm

Directory of Open Access Journals (Sweden)

Andrei JOSAN

2013-08-01

Full Text Available Capitalism is a social adaptive system that evolve, change and grow in response to the challenges of a rapidly changing economic environment. When capitalism is seriously threatened by a systemic crisis, a new version much better adapted to existing conditions appears. Critical analysis of the fundamental ideas underlying neoclassical economic theory shows that the capitalist system is fundamentally a dynamic and therefore static neoclassical models proved to be unsuitable for studying it. Contrary to neoclassical economic vision, the capitalist economy is not governed by immutable economic laws. Global systemic crisis of capitalism that began in 2007 has highlighted the need for a new economic paradigm on which to be built and to be performed a new version of capitalism, in line with the increasingly complex realities of a globalized and quick changing world.

The use of modern information technologies in teaching students of economics theory of probability

Directory of Open Access Journals (Sweden)

Иван Васильевич Детушев

2013-12-01

Full Text Available This article discusses the use of the program «MathCAD» in teaching students of economic specialties of mathematics. It is shown that the use of this software product contributes to the effective development of methods for solving problems of the theory of probability.

The Idea of National HRD: An Analysis Based on Economics and Theory Development Methodology

Science.gov (United States)

Wang, Greg G.; Swanson, Richard A.

2008-01-01

Recent human resource development (HRD) literature focuses attention on national HRD (NHRD) research and represents problems in both HRD identity and research methodology. Based on a review of development economics and international development literature, this study analyzes the existing NHRD literature with respect to the theory development…

Joan Robinson e la teoria economica. (Joan Robinson and economic theory

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A. ASIMAKOPULOS

2013-12-01

Full Text Available L'interesse di Joan Robinson nel problema della distribuzione del reddito e il suo disprezzo per quello che considera le teorie che hanno cercato di giustificare le distribuzioni esistenti di reddito mai segnalati . Il suo lavoro è caratterizzato da una forte inclinazione per chiari  argomenti ben ragionati che non lasciavano spazio per  sciatte abitudini  di pensiero . La portata ampia e la quantità di scritti di Robinson rendono difficile presentare una valutazione critica dei suoi contributi nel contesto anche di un documento lungo . Quella attuale si concentra sui suoi scritti in cinque aree principali : (i l'economia della concorrenza imperfetta ; ( ii la teoria del rapporto di lavoro ; ( iii la teoria di accumulazione nel lungo periodo ; ( iv il concetto di capitale e la funzione di produzione ; e ( v il problema del tempo in economia che si riflette nei suoi scritti sulla storia tema contro equilibrio .Joan Robinson’s interest in the question of the distribution of income and her disdain for what she considered to be theories that tried to justify existing distributions of income never flagged. Her work is marked by a strong inclination for clear, well reasoned arguments that left no room for sloppy habits of thought. The wide scope and quantity of Robinson’s writings make it difficult to present a critical evaluation of her contributions within the context of even a lengthy paper. The present one concentrates on her writings in five main areas: (i the economics of imperfect competition; (ii the theory of employment; (iii the theory of accumulation in the long run; (iv the concept of capital and the production function; and (v the problem of time in economics as reflected in her writings on the theme history versus equilibrium. JEL: B31, E24

Unified strength theory and its applications

CERN Document Server

Yu, Mao-Hong

2004-01-01

This is a completely new theory dealing with the yield and failure of materials under multi-axial stresses. It provides a system of yield and failure criteria adopted for most materials, from metallic materials to rocks, concretes, soils, polymers etc. The Unified Strength Theory has been applied successfully to analyse the elastic limit, plastic limit capacities, the dynamic response behavior for some structures under static and moderate impulsive load, and may be implemented in some elasto-plastic finite element computer codes. The Unified Strength Theory is described in detail and by using this theory a series of results can be obtained. The Unified Strength Theory can improve the conservative Mohr-Coulomb Theory, and since intermediate principal stress is not taken into account in the Mohr-Coulomb theory and most experimental data is not pertainable to the Mohr-Coulomb Theory, a considerable economic benefit may be obtained. The book can also increase the effect of most commercial finite element computer ...

Thermodynamics and economics

International Nuclear Information System (INIS)

Mansson, B.A.

1990-01-01

Economics, as the social science most concerned with the use and distribution of natural resources, must start to make use of the knowledge at hand in the natural sciences about such resources. In this, thermodynamics is an essential part. In a physicists terminology, human economic activity may be described as a dissipative system which flourishes by transforming and exchanging resources, goods and services. All this involves complex networks of flows of energy and materials. This implies that thermodynamics, the physical theory of energy and materials flows, must have implications for economics. On another level, thermodynamics has been recognized as a physical theory of value, with value concepts similar to those of economic theory. This paper discusses some general aspects of the significance of non-equilibrium thermodynamics for economics. The role of exergy, probably the most important of the physical measures of value, is elucidated. Two examples of integration of thermodynamics with economic theory are reviewed. First, a simple model of a steady-state production system is sued to illustrate the effects of thermodynamic process constraints. Second, the framework of a simple macroeconomic growth model is used to illustrate how some thermodynamic limitations may be integrated in macroeconomic theory

A possible realization of Einstein's causal theory underlying quantum mechanics

International Nuclear Information System (INIS)

Yussouff, M.

1979-06-01

It is shown that a new microscopic mechanics formulated earlier can be looked upon as a possible causal theory underlying quantum mechanics, which removes Einstein's famous objections against quantum theory. This approach is free from objections raised against Bohm's hidden variable theory and leads to a clear physical picture in terms of familiar concepts, if self interactions are held responsible for deviations from classical behaviour. The new level of physics unfolded by this approach may reveal novel frontiers in high-energy physics. (author)

Economic Thinking for Strategic Leaders

Science.gov (United States)

2011-03-24

unprepared to analyze certain complex, ambiguous issues and craft informed decisions. 15. SUBJECT TERMS Behavioral Economics, Public Choice Theory ...COUNT: 7,668 PAGES: 38 KEY TERMS: Behavioral Economics, Public Choice Theory , Army Profession CLASSIFICATION: Unclassified Military senior...various economic fields, including Identity Economics, Neoclassical Economics, Behavioral Economics, and Public Choice Economics. Finally, it

Decisionmaking under risk in invasive species management: risk management theory and applications

Science.gov (United States)

Shefali V. Mehta; Robert G. Haight; Frances R. Homans

2010-01-01

Invasive species management is closely entwined with the assessment and management of risk that arises from the inherently random nature of the invasion process. The theory and application of risk management for invasive species with an economic perspective is reviewed in this synthesis. Invasive species management can be delineated into three general categories:...

The opportunity-threat theory of decision-making under risk

OpenAIRE

Mohan Pandey

2018-01-01

A new theory of decision-making under risk, the Opportunity-Threat Theory is proposed. Analysis of risk into opportunity and threat components allows description of behavior as a combination of opportunity seeking and threat aversion. Expected utility is a special case of this model. The final evaluation is an integration of the impacts of opportunity and threat with this expectation. The model can account for basic results as well as several ``new paradoxes'' that refuted c...

New approaches to business cycle theory in current economic science

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Monica DOBRESCU

2012-07-01

Full Text Available In modern economies, current research generally acknowledges that the central issues in macroeconomics are essentially the same as those identified by Keynes in the General Theory of Employment, Interest and Money. One way or the other, economists are trying to address the same macroeconomic issues that they did seven decades ago: How can we account for the different growth rates and various fluctuations observed in national economies? Which are the economic policies most suitable to solve the issues of growth and cyclic behavior? Both the new classicals and the new Keynesians have made considerable progress within their research paradigms: to explain economic fluctuations, the new classicals focus on technological perturbations, the intertemporal substitution of leisure and real business cycles; on the other hand, the new Keynesians speak in terms of monopolistic competition, menu costs or efficiency wages. On the whole, the new classicals believe that the business cycle can best be understood within the market-clearing model, whereas the new keynesians believe that business fluctuations are due to certain market failures of various sorts.The present paper focuses on the main directions of research of the new classical school on the business cycle, given that the theoretical progress in this field has been significant and relevant for economic policy during the past four decades.

BOP theory in an emerging market economy: India under the microscope

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Gouher Ahmed

2015-07-01

Full Text Available Poverty is a universal phenomenon which does not go well with the progressive 21st century and hence the worldwide efforts to overcome the problem. At the beginning of the 21st century (2002, the late professor C.K. Prahalad had propounded a path breaking theory of poverty alleviation called the bottom of the pyramid business theory, which is not only making MNCs investments (FDI in underdeveloped countries and promoting their growth and employment generation and increase in incomes and thereby consumption and expenditure but also producing goods and services needed by the poor households at the bottom of the economic and business pyramid. The paper is devoted to the consideration of the theory in the emerging market economy of India where poverty is a biggest problem and the situation is not found significant for the BOP business. Can there be a market solution to it?

Structural modelling of economic growth: Technological changes

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Sukharev Oleg

2016-01-01

Full Text Available Neoclassical and Keynesian theories of economic growth assume the use of Cobb-Douglas modified functions and other aggregate econometric approaches to growth dynamics modelling. In that case explanations of economic growth are based on the logic of the used mathematical ratios often including the ideas about aggregated values change and factors change a priori. The idea of assessment of factor productivity is the fundamental one among modern theories of economic growth. Nevertheless, structural parameters of economic system, institutions and technological changes are practically not considered within known approaches, though the latter is reflected in the changing parameters of production function. At the same time, on the one hand, the ratio of structural elements determines the future value of the total productivity of the factors and, on the other hand, strongly influences the rate of economic growth and its mode of innovative dynamics. To put structural parameters of economic system into growth models with the possibility of assessment of such modes under conditions of interaction of new and old combinations is an essential step in the development of the theory of economic growth/development. It allows forming stimulation policy of economic growth proceeding from the structural ratios and relations recognized for this economic system. It is most convenient in such models to use logistic functions demonstrating the resource change for old and new combination within the economic system. The result of economy development depends on starting conditions, and on institutional parameters of velocity change of resource borrowing in favour of a new combination and creation of its own resource. Model registration of the resource is carried out through the idea of investments into new and old combinations.

The agency problem and medical acting: an example of applying economic theory to medical ethics.

Science.gov (United States)

Langer, Andreas; Schröder-Bäck, Peter; Brink, Alexander; Eurich, Johannes

2009-03-01

In this article, the authors attempt to build a bridge between economic theory and medical ethics to offer a new perspective to tackle ethical challenges in the physician-patient encounter. They apply elements of new institutional economics to the ethically relevant dimensions of the physician-patient relationship in a descriptive heuristic sense. The principal-agent theory can be used to analytically grasp existing action problems in the physician-patient relationship and as a basis for shaping recommendations at the institutional level. Furthermore, the patients' increased self-determination and modern opportunities for the medical laity to inform themselves lead to a less asymmetrical distribution of information between physician and patient and therefore require new interaction models. Based on the analysis presented here, the authors recommend that, apart from the physician's necessary individual ethics, greater consideration should be given to approaches of institutional ethics and hence to incentive systems within medical ethics.

Extended prospect theory : Findings on choice behaviour from economics and the behavioural sciences and their relevance for travel behaviour

NARCIS (Netherlands)

Van de Kaa, E.J.

2008-01-01

In Transport Sciences different implementations of Utility Theory are commonly used for the description and prediction of human choice behaviour. Almost 30 years ago Kahneman and Tversky proposed an alternative behavioural-economic model of choice behaviour called Prospect Theory. In contrast to

The Development of a Distributive Interactive Computing Model in Consumer Economics, Utilizing Jerome S. Bruner's Theory of Instruction.

Science.gov (United States)

Morrison, James L.

A computerized delivery system in consumer economics developed at the University of Delaware uses the PLATO system to provide a basis for analyzing consumer behavior in the marketplace. The 16 sequential lessons, part of the Consumer in the Marketplace Series (CMS), demonstrate consumer economic theory in layman's terms and are structured to focus…

Wildland economics: theory and practice

Science.gov (United States)

Pete Morton

2000-01-01

Since passage of the Wilderness Act, economists have derived the total economic valuation framework for estimating wildland benefits. Over the same time period, policies adopted by public land management agencies have been slow to internalize wilderness economics into management decisions. The lack of spatial resolution and modeler bias associated with the FORPLAN...

Optimal Portfolio Strategy under Rolling Economic Maximum Drawdown Constraints

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Xiaojian Yu

2014-01-01

Full Text Available This paper deals with the problem of optimal portfolio strategy under the constraints of rolling economic maximum drawdown. A more practical strategy is developed by using rolling Sharpe ratio in computing the allocation proportion in contrast to existing models. Besides, another novel strategy named “REDP strategy” is further proposed, which replaces the rolling economic drawdown of the portfolio with the rolling economic drawdown of the risky asset. The simulation tests prove that REDP strategy can ensure the portfolio to satisfy the drawdown constraint and outperforms other strategies significantly. An empirical comparison research on the performances of different strategies is carried out by using the 23-year monthly data of SPTR, DJUBS, and 3-month T-bill. The investment cases of single risky asset and two risky assets are both studied in this paper. Empirical results indicate that the REDP strategy successfully controls the maximum drawdown within the given limit and performs best in both return and risk.

Perceptions of Competence and the European Economic Crisis

DEFF Research Database (Denmark)

Chiozza, Giacomo; Manzetti, Luigi

2015-01-01

This study provides micro-level evidence for the new theories of accountability under globalization. We analyze the micro-level logic that underpins political accountability in democratic countries with highly globalized economies. We contend that voters discount current economic conditions...

Strategy for the expansion of renewable energies. An investigation of the pricing strategy of the Renewable Energy Law from the viewpoint of an evolutionary cybernetic theory of economic policy

International Nuclear Information System (INIS)

Schlueter, Fabian

2015-01-01

This publication reports on how the steadily increasing costs caused by the Renewable Energy Law (EEG) have brought the German strategy for the expansion of renewable energies under criticism. According to theories of regulatory economic policy, which state that politico-economic incentives of this kind must necessarily result in an inefficient allocation of scarce resources, this cost increase can be interpreted as a direct consequence of the price intervention. The present publication takes a critical stance on this viewpoint, developing for its purpose a new position on regulatory policy referred to as the evolutionary cybernetic theory of economic policy. It starts out from the works of F.A. von Hayek, which it then takes a significant step further however. The author argues that price interventions can be meaningful strategies of economic policy as long as they are aimed at a temporary initiation of market development towards sustainability and efficiency. Based on this model conception of a shrewd pricing strategy the publication undertakes an analysis from the perspective of regulatory policy of the German subsidisation of renewable energies. In the process it not only reveals errors in design of the EEG but also makes a proposal for an amendment that could be effective in cutting through the present price dynamics. In presenting its recommendation of a self-steering expansion policy the publication not only contributes to the further development of an evolutionary cybernetic theory of economic policy but addresses the urgent problem of how to wisely use regulatory policy to create pricing strategies which serve the expansion of renewable energies.

ECONOMIC NATIONALISM’S VIABILITY UNDER GLOBALIZATION

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Elena Mihaela ILIESCU

2015-07-01

Full Text Available The path undertaken by the world economy is irreversible - the world economic system is a system based on interdependencies, cooperation and multilateralism but economic openness is not full. Each country, in order to protect their national interest call, in different proportion, depending on the circumstances and of the economic-social and political interests, for different forms of the economic nationalism, forms that have adapted continuously to the demands required for integrating on the foreign markets. The recent global economic crisis intensified the rhetoric and the economic nationalism’s practices but it is not about rebirth, but of renewal, of remodeling the nationalist policies, globalization being a premise of the new economic nationalism. The scope of this paper is to emphasize using empirical data the fact that nationalism and globalization, from an economical point of view, are not antagonistic policies, they coexist and influence each other, both generating contradictory effects, in terms of provided opportunities and risks.

Decision-making model of generation technology under uncertainty based on real option theory

International Nuclear Information System (INIS)

Ming, Zeng; Ping, Zhang; Shunkun, Yu; Ge, Zhang

2016-01-01

Highlights: • A decision-making model of generation technology investment is proposed. • The irreversible investment concept and real option theory is introduced. • Practical data was used to prove the validity of the model. • Impact of electricity and fuel price fluctuation on investment was analyzed. - Abstract: The introduction of market competition and the increased uncertainty factors makes the generators have to decide not only on whether to invest generation capacity or not but also on what kind of generation technology to choose. In this paper, a decision-making model of generation technology investment is proposed. The irreversible investment concept and real option theory is introduced as the fundamental of the model. In order to explain the decision-making process of generator’s investment, the decision-making optimization model was built considering two generation technologies, i.e., the heat-only system and the combined heat and power generation. Also, we discussed the theory deducing process, which explained how to eliminate the overrated economic potential caused by risk hazard, based on economic evaluation of both generation technologies. Finally, practical data from electricity market of Inner Mongolia was used to prove the validity of the model and the impact of uncertainties of electricity and fuel price fluctuation on investment was analyzed according to the simulated results.

Papers in auction theory

NARCIS (Netherlands)

Onderstal, A.M.

2002-01-01

This thesis is a collection of six papers in auction theory, with several economic applications, both to real life auctions and to other economic phenomena. In the introduction to the thesis, Onderstal argues why auction theory is an important branch of economic theory, and discusses several

Economic Decision Making: Application of the Theory of Complex Systems

Science.gov (United States)

Kitt, Robert

In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore complex systems. It is discussed that the rapid change in global consumer behaviour is underway, that further increases the complexity in business and management. For policy making under complexity, following principles are offered: openness and international competition, tolerance and variety of ideas, self-reliability and low dependence on external help. The chapter contains four applications that build on the theoretical motivation of complexity in social systems. The first application demonstrates that small economies have good prospects to gain from the global processes underway, if they can demonstrate production flexibility, reliable business ethics and good risk management. The second application elaborates on and discusses the opportunities and challenges in decision making under complexity from macro and micro economic perspective. In this environment, the challenges for corporate management are being also permanently changed: the balance between short term noise and long term chaos whose attractor includes customers, shareholders and employees must be found. The emergence of chaos in economic relationships is demonstrated by a simple system of differential equations that relate the stakeholders described above. The chapter concludes with two financial applications: about debt and risk management. The non-equilibrium economic establishment leads to additional problems by using excessive borrowing; unexpected downturns in economy can more easily kill companies. Finally, the demand for quantitative improvements in risk management is postulated. Development of the financial markets has triggered non-linearity to spike in prices of various production articles such as agricultural and other commodities that has added market

An Assessment of Theories Underlying the Operations of the Nigerian Stock Market

Directory of Open Access Journals (Sweden)

Chris O. Udoka

2014-07-01

Full Text Available This paper aimed at determining the theories and approaches that inform the operational efficiency of the Nigerian stock market, considering the economic, financial, political and environmental factors inducing shareholder behaviour in the market. Taking a desk review of the theories, against the wealth maximization expectations of investors, the paper notes that due to imperfections in the Nigerian stock market, certain policies are clearly unsuitable in informing shareholder behaviour and corporate managements’ relationship with them. Due to the several factors affecting dividend policy such as legal constraints, funding needs, control issue, debt obligation, investment opportunity, inflation, shareholders expectations etc, good planning must be put in place.

Adaptability of the Logistics System in National Economic Mobilization Based on Blocking Flow Theory

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Xiangyuan Jing

2014-01-01

Full Text Available In the process of national economic mobilization, the logistics system usually suffers from negative impact and/or threats of such emergency events as wars and accidents, which implies that adaptability of the logistics system directly determines realization of economic mobilization. And where the real-time rescue operation is concerned, heavy traffic congestion is likely to cause a great loss of or damage to human beings and their properties. To deal with this situation, this article constructs a blocking-resistance optimum model and an optimum restructuring model based on blocking flow theories, of which both are illustrated by numerical cases and compared in characteristics and application. The design of these two models is expected to eliminate or alleviate the congestion situation occurring in the logistics system, thus effectively enhancing its adaptability in the national economic mobilization process.

Employment and Economic Insecurity: A Commonsian Perspective

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Sylvie Morel

2010-01-01

Full Text Available The principal concern of this paper is with the need of a theoretical shift in economics for analyzing and devising efficient and innovative policy reforms to combat employment insecurity. Mainstream economics is unable to provide appropriate theorizing about economic phenomena, including economic insecurity. Thus, we must turn to economic theories which radically question the dominant paradigm in economics. John Rogers Commons's institutionalist theory accomplishes that. First, the author of this paper outlines the distinctive character of this theory by presenting some of its crucial methodological differences with neoclassical economics. Second, she explains how economic insecurity is conceptualized as an "instituted" process with this theory of institution. A better mastery of this specific school of thought in economics appears to escape the problems met by mainstream economics by proposing a real theoretical alternative for the development of a truly evolutionary, trans-disciplinary and ethical economic theory.

Employment and Economic Insecurity: A Commonsian Perspective

Directory of Open Access Journals (Sweden)

Sylvie Morel

2009-12-01

Full Text Available The principal concern of this paper is with the need of a theoretical shift in economics for analyzing and devising efficient and innovative policy reforms to combat employment insecurity. Mainstream economics is unable to provide appropriate theorizing about economic phenomena, including economic insecurity. Thus, we must turn to economic theories which radically question the dominant paradigm in economics. John Rogers Commons's institutionalist theory accomplishes that. First, the author of this paper outlines the distinctive character of this theory by presenting some of its crucial methodological differences with neoclassical economics. Second, she explains how economic insecurity is conceptualized as an "instituted" process with this theory of institution. A better mastery of this specific school of thought in economics appears to escape the problems met by mainstream economics by proposing a real theoretical alternative for the development of a truly evolutionary, trans-disciplinary and ethical economic theory.

[The theory of the demographic transition as a reference for demo-economic models].

Science.gov (United States)

Genne, M

1981-01-01

The aim of the theory of demographic transition (TTD) is to better understand the behavior and interrelationship of economic and demographic variables. There are 2 types of demo-economic models: 1) the malthusian models, which consider demographic variables as pure exogenous variables, and 2) the neoclassical models, which consider demographic variables as strictly endogenous. If TTD can explore the behavior of exogenous and endogenous demographic variables, it cannot demonstrate neither the relation nor the order of causality among the various demographic and economic variables, but it is simply the theoretical framework of a complex social and economic phenomenon which started in Europe in the 19th Century, and which today can be extended to developing countries. There are 4 stages in the TTD; the 1st stage is characterized by high levels of fecundity and mortality; the 2nd stage is characterized by high fecundity levels and declining mortality levels; the 3rd stage is characterized by declining fecundity levels and low mortality levels; the 4th stage is characterized by low fertility and mortality levels. The impact of economic variables over mortality and birth rates is evident for mortality rates, which decline earlier and at a greater speed than birth rates. According to reliable mathematical predictions, around the year 1987 mortality rates in developing countries will have reached the low level of European countries, and growth rate will be only 1.5%. If the validity of demo-economic models has not yet been established, TTD has clearly shown that social and economic development is the factor which influences demographic expansion.

Yam Storability and Economic Benefits of Storage Under the Modern ...

African Journals Online (AJOL)

This paper examines yam storability and the economic benefits of storage under the modern (underground) and the traditional (yam barn) storage technologies in Southeastern Nigeria. Data were collected mainly from 55 respondents who were interviewed, as well as from measurement of storage parameters on yam ...

LAG, GAPS AND CONVERGENCES – FIVE CENTURIES OF EUROPEAN ECONOMIC EXPERIENCES

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Dr. Bogdan MURGESCU

2010-11-01

Full Text Available This paper entails the experience of different European countries in what concerns economic gaps storage, “economic lag” and “catching-up the lag time”, confronting economic theories regarding economic growth determinants. Taking into consideration the cases of Denmark and Ireland, which have managed, in different historical periods, to surpass the peripheral condition and relative economic under- development, and to be part of the most developed and prosper group countries; the study evaluates the chances of other countries to realize similar progresses.

Gauge theories under incorporation of a generalized uncertainty principle

International Nuclear Information System (INIS)

Kober, Martin

2010-01-01

There is considered an extension of gauge theories according to the assumption of a generalized uncertainty principle which implies a minimal length scale. A modification of the usual uncertainty principle implies an extended shape of matter field equations like the Dirac equation. If there is postulated invariance of such a generalized field equation under local gauge transformations, the usual covariant derivative containing the gauge potential has to be replaced by a generalized covariant derivative. This leads to a generalized interaction between the matter field and the gauge field as well as to an additional self-interaction of the gauge field. Since the existence of a minimal length scale seems to be a necessary assumption of any consistent quantum theory of gravity, the gauge principle is a constitutive ingredient of the standard model, and even gravity can be described as gauge theory of local translations or Lorentz transformations, the presented extension of gauge theories appears as a very important consideration.

The Properties of Model Selection when Retaining Theory Variables

DEFF Research Database (Denmark)

Hendry, David F.; Johansen, Søren

Economic theories are often fitted directly to data to avoid possible model selection biases. We show that embedding a theory model that specifies the correct set of m relevant exogenous variables, x{t}, within the larger set of m+k candidate variables, (x{t},w{t}), then selection over the second...... set by their statistical significance can be undertaken without affecting the estimator distribution of the theory parameters. This strategy returns the theory-parameter estimates when the theory is correct, yet protects against the theory being under-specified because some w{t} are relevant....

Economic Studies

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A. V. Kholopov

2014-01-01

Full Text Available The establishment of the School of Economic Science at MGIMO was due to the necessity of the world economy research, and the need to prepare highly skilled specialists in international economics. The school is developing a number of areas, which reflect the Faculty structure. - Economic theory is one of the most important research areas, a kind of foundation of the School of Economic Science at MGIMO. Economic theory studies are carried out at the chair of Economic theory. "The course of economic theory" textbook was published in 1991, and later it was reprinted seven times. Over the past few years other textbooks and manuals have been published, including "Economics for Managers" by Professor S.N. Ivashkovskaya, which survived through five editions; "International Economics" - four editions and "History of Economic Thought" - three editions. - International Economic Relations are carried out by the Department of International Economic Relations and Foreign Economic Activity. Its establishment is associated with the prominent economist N.N. Lyubimov. In 1957 he with his colleagues published the first textbook on the subject which went through multiple republications. The editorial team of the textbook subsequently formed the pride of Soviet economic science - S.M. Menshikov, E.P. Pletnev, V.D. Schetinin. Since 2007, the chair of Foreign Economic Activities led by Doctor of Economics, Professor I. Platonova has been investigating the problems of improving the architecture of foreign economic network and the international competitiveness of Russia; - The history of the study of problems of the world economy at MGIMO begins in 1958 at the chair baring the same name. Since 1998, the department has been headed by Professor A. Bulatov; - The study of international monetary relations is based on the chair of International Finance, and is focused on addressing the fundamental scientific and practical problems; - The chair "Banks, monetary circulation

Theory and empiricism of shadow economy - an economic analysis example for Austria

International Nuclear Information System (INIS)

Kuntzer, H.-P.

2000-09-01

Illegally circulating streams of net output will exist as long as economic events are registered and taxed by state authorities. Since the beginning of the eighties this part of the economic process has been more and more involved in scientific and political discussions not least because of the stagnating officially registered domestic content (as a result of two oil crisis) which lead to a continually financial crisis of all social security systems in Europe. Even if the shadow economic domestic content of GDP in Austria can be seen as relatively low in comparison to international figures, the steady increase of this sector during the last few years gives rise to concerns. In order to approach the phenomenon of shadow economy and especially illegal activities in the Alpine republic this treatise gives an abstract on the state of affairs as far as theoretical researches on the shadow economy is concerned. In this connection the following influencing factors are seen as important. On the one hand the variety of costs that go with the factor work (direct and indirect taxes, social security contributions and regulating costs) and on the other hand the steadily rising offers of illegal activities as a result of decreasing working hours and increasing unemployment. Moreover this development is supported by the growing sullenness towards state authorities (hypotheses of changing values). The interplay of all these factors ends up in an increasing share value of shadow economic activities in the OECD. The effects of this circumstance are evaluated ambivalently by theory because there are negative effects (growing unemployment, low tax receipts) as well as positive effects (induced costs, better supply of consumer demands). Punitive measures to control these activities are also regarded as ineffective. In order to approach the shadow economy - especially in Austria - this treatise first deals with the different methods to measure shadow economic activities, which are all

"Economics Imperialism", Education Policy and Educational Theory

Science.gov (United States)

Allais, Stephanie

2012-01-01

This paper examines how economics imperialism (the increasing colonization of other disciplines by neoclassical economics) has affected contemporary education policies. I suggest that an increasing preoccupation with education meeting the needs of the economy, together with the prevalence of economic concepts outside of economics, have contributed…

PRINCIPLE OF RATIONAL EGOISM AS AN IDEOLOGICAL CONCEPTION OF MAN FOUNDATION UNDER THE CONTEXT OF ECONOMIC RELATIONS

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Oksana Petinowa

2016-12-01

Full Text Available The modern global context of humanity’s existence is greatly mediated by economic relations. The solution of typical social issues is closely related to the economic sphere, economic activity, and market mechanisms. The subject of all co-operations is the specific character of his economic, natural and behavioral displays, presented in the model of homo economicus. The article considers the historical part of ideological reconstructions of economic theories where certain conceptions of man, one or another understanding of his essence and destiny as an expression of the spirit of time are shown (A. Smith, L. Valla, N. Machiavelli, T. Gobbs, F. Bacon, B. Mandeville, J.J. Rousseau, D. Didro, C. Helvétius, P. Holbach and others.

Revisiting the relevance of economic theory to hotel revenue management education and practice in the era of Big Data

OpenAIRE

Haynes, Natalie; Egan, David

2017-01-01

Abstract\\ud This paper explores the role of economics in hospitality education and industry practice, with a particular focus on revenue management, and puts forward an argument for a return to the inclusion of economic theory in UK hospitality education, not seen since the 1990s. Given the increasing amounts of pricing data available to both managers and customers and the consequent market complexities now seen, developing economic literacy is demonstrated to be a crucial skill required for ...

Planificarea economică sub monarhia autoritară din România (The economic planning under authoritarian monarchy of Romania

Directory of Open Access Journals (Sweden)

Florin GRECU

2016-06-01

Full Text Available The article analyzes the economic planning institution under authoritarian monarchy of Romania, 1938-1940. The Superior Economic Council, populated by specialists, had the main responsibilities of planning and economic control. The Superior Economic Council composition will be found in the structures of the National Renaissance Front as well as in the composition of the corporatist Parliament. The appointment of the Members of the The Superior Economic Council by royal decree has highlighted the monarch’s desire to have a personal institution, which would be composed of all the important representatives of the Economy, Industry and Finances. The Super Ministry, Ministry of National Economy, headed by Mitiţă Constantinescu, have the task of guidance, coordination and encouragement of the progress for the productive forces distribution of production, direction and supervision of importation, and preparation of economic laws. By the Decree of October 1939, the Ministry of National Economy may could decide the syndicalization of all enterprises, from a specific industrial branch, setting concrete tasks of production and selling of goods. The Superior Economic Council was established to coordinate the corporate economy through policies of planism and economic nationalization, but the corporate institutution of the Romanian authoritative state was the guild

The Economics of Networking

DEFF Research Database (Denmark)

Sørensen, Olav Jull

The literature on business networks is often oversocialized. The economic side of business is implicitly assumed. This paper analyses the economics of network behavior by loking at each of the key concepts in the Network Theory.......The literature on business networks is often oversocialized. The economic side of business is implicitly assumed. This paper analyses the economics of network behavior by loking at each of the key concepts in the Network Theory....

Walter Isard's Contributions to Environmental Economics and Ecological Economics

NARCIS (Netherlands)

Rose, Adam; Folmer, Henk; Nijkamp, Peter

This article summarizes Walter Isard's important contributions to environmental economics and ecological economics. The former is the traditional field that incorporates some limited aspects of the environment into neoclassical economic theory, while the latter is a more comprehensive integration of

Essays in energy economics

Energy Technology Data Exchange (ETDEWEB)

Malischek, Raimund

2016-10-25

This thesis presents four essays in energy economics. The first essay investigates one of the workhorse models of resource economics, the Hotelling model of an inter-temporally optimizing resource extracting firm. The Hotelling model provides a convincing theory of fundamental concepts like resource scarcity, but very few empirical validations of the model have been conducted. This essay attempts to empirically validate the Hotelling model by first expanding it to include exploration activity and market power and then using a newly constructed data set for the uranium mining industry to test whether a major resource extracting mining firm in the industry is following the theory's predictions. The results show that the theory is rejected in all considered settings. The second and third essays investigate the difference in market outcomes under spot-market based trade as compared to long-term contract based trade in oligopolistic markets with investments. The second essay investigates analytically the difference in market outcomes in an electricity market setting, showing that investments and consumer welfare may be higher under spot-market based trade than under long-term contracts. The third essay proposes techniques to solve large-scale models of this kind, empirically, by exploring the practicability of this approach in an application to the international metallurgical coal market. The final essay investigates the influence of policy uncertainty on investment decisions. With France debating the role of nuclear technology, this essay analyses how policy uncertainty regarding nuclear power in France may feature in the French and European power sector. Applying a stochastic model for the European power system, the analysis shows that the costs of uncertainty in this particular application are rather low compared to the overall costs of a nuclear phase-out.

Essays in energy economics

International Nuclear Information System (INIS)

Malischek, Raimund

2016-01-01

This thesis presents four essays in energy economics. The first essay investigates one of the workhorse models of resource economics, the Hotelling model of an inter-temporally optimizing resource extracting firm. The Hotelling model provides a convincing theory of fundamental concepts like resource scarcity, but very few empirical validations of the model have been conducted. This essay attempts to empirically validate the Hotelling model by first expanding it to include exploration activity and market power and then using a newly constructed data set for the uranium mining industry to test whether a major resource extracting mining firm in the industry is following the theory's predictions. The results show that the theory is rejected in all considered settings. The second and third essays investigate the difference in market outcomes under spot-market based trade as compared to long-term contract based trade in oligopolistic markets with investments. The second essay investigates analytically the difference in market outcomes in an electricity market setting, showing that investments and consumer welfare may be higher under spot-market based trade than under long-term contracts. The third essay proposes techniques to solve large-scale models of this kind, empirically, by exploring the practicability of this approach in an application to the international metallurgical coal market. The final essay investigates the influence of policy uncertainty on investment decisions. With France debating the role of nuclear technology, this essay analyses how policy uncertainty regarding nuclear power in France may feature in the French and European power sector. Applying a stochastic model for the European power system, the analysis shows that the costs of uncertainty in this particular application are rather low compared to the overall costs of a nuclear phase-out.

Two stages of economic development

OpenAIRE

Gong, Gang

2016-01-01

This study suggests that the development process of a less-developed country can be divided into two stages, which demonstrate significantly different properties in areas such as structural endowments, production modes, income distribution, and the forces that drive economic growth. The two stages of economic development have been indicated in the growth theory of macroeconomics and in the various "turning point" theories in development economics, including Lewis's dual economy theory, Kuznet...

What determines crime rates? An empirical test of integrated economic and sociological theories of criminal behavior

NARCIS (Netherlands)

Engelen, Peter Jan; Lander, Michel W.; van Essen, Marc

Research on crime has by no means reached a definitive conclusion on which factors are related to crime rates. We contribute to the crime literature by providing an integrated empirical model of economic and sociological theories of criminal behavior and by using a very comprehensive set of

APPLYING THE THEORY OF CONSTRAINTS TO INCREASE ECONOMIC VALUE ADDED: PART 1—THEORY

Directory of Open Access Journals (Sweden)

Malan Smith

2012-01-01

Full Text Available

ENGLISH ABSTRACT: This article, presented in two parts, explains how to apply the Theory of Constraints (TOC in a business to increase Economic Value Added (EVA. The first part deals with the theory, while the second part deals with the implementation. The goal of a business, the measurements of the goal and the priority of the measurements are discussed. The future reality of a company which implements TOC principles is shown through cause and effect to lead to an increase in EVA. The increase in EVA is caused by an increase in return on investment and a reduction in the cost of capital. The actions the company must take to increase EVA is presented.

AFRIKAANSE OPSOMMING: Hierdie artikel, aangebied in twee dele, verduidelik hoe om die Teorie van Beperkinge (TVB in a besigheid toe te pas om Ekonomiese Toegevoegde Waarde (ETW te vermeerder. Die eerste gedeelte verduidelik die teorie, terwyl die tweede gedeelte die toepassing hanteer. Die doel van ’n besigheid, die maatstawwe van die doel en die prioriteit van die maatstawwe word bespreek. Deur middel van oorsaak en effek word gewys dat die toekomstige werklikheid van ’n besigheid wat TVB beginsels toepas lei tot ’n toename in ETW. Die toename in ETW word veroorsaak deur ’n toename in opbrengs op belegging en ’n afname in die koste van kapitaal. Die aksies wat ’n besigheid moet neem om ETW te vermeerder, word genoem.

Theories of estimation of differentiation for regulation of social-economic development of the city agglomeration

OpenAIRE

Anikina, Yu; Litovchenko, V.

2009-01-01

Theories of estimation of differentiation of social-economic development of territorial units in city agglomeration are discussed in the article. Approbation of the given methods helped find out successfulness of the regulation of municipal development of administrative-territorial units in Krasnoyarsk agglomeration, set the goals of regional policy on peculiarities of development of the phenomenon of differentiation.

Strategy for the expansion of renewable energies. An investigation of the pricing strategy of the Renewable Energy Law from the viewpoint of an evolutionary cybernetic theory of economic policy; Die Strategie des Ausbaus erneuerbarer Energien. Eine Untersuchung der Preissetzungsstrategie des EEGs aus Sicht einer evolutorisch-kybernetischen Theorie der Wirtschaftspolitik

Energy Technology Data Exchange (ETDEWEB)

Schlueter, Fabian

2015-11-01

This publication reports on how the steadily increasing costs caused by the Renewable Energy Law (EEG) have brought the German strategy for the expansion of renewable energies under criticism. According to theories of regulatory economic policy, which state that politico-economic incentives of this kind must necessarily result in an inefficient allocation of scarce resources, this cost increase can be interpreted as a direct consequence of the price intervention. The present publication takes a critical stance on this viewpoint, developing for its purpose a new position on regulatory policy referred to as the evolutionary cybernetic theory of economic policy. It starts out from the works of F.A. von Hayek, which it then takes a significant step further however. The author argues that price interventions can be meaningful strategies of economic policy as long as they are aimed at a temporary initiation of market development towards sustainability and efficiency. Based on this model conception of a shrewd pricing strategy the publication undertakes an analysis from the perspective of regulatory policy of the German subsidisation of renewable energies. In the process it not only reveals errors in design of the EEG but also makes a proposal for an amendment that could be effective in cutting through the present price dynamics. In presenting its recommendation of a self-steering expansion policy the publication not only contributes to the further development of an evolutionary cybernetic theory of economic policy but addresses the urgent problem of how to wisely use regulatory policy to create pricing strategies which serve the expansion of renewable energies.

Metabolic state alters economic decision making under risk in humans.

Directory of Open Access Journals (Sweden)

Mkael Symmonds

2010-06-01

Full Text Available Animals' attitudes to risk are profoundly influenced by metabolic state (hunger and baseline energy stores. Specifically, animals often express a preference for risky (more variable food sources when below a metabolic reference point (hungry, and safe (less variable food sources when sated. Circulating hormones report the status of energy reserves and acute nutrient intake to widespread targets in the central nervous system that regulate feeding behaviour, including brain regions strongly implicated in risk and reward based decision-making in humans. Despite this, physiological influences per se have not been considered previously to influence economic decisions in humans. We hypothesised that baseline metabolic reserves and alterations in metabolic state would systematically modulate decision-making and financial risk-taking in humans.We used a controlled feeding manipulation and assayed decision-making preferences across different metabolic states following a meal. To elicit risk-preference, we presented a sequence of 200 paired lotteries, subjects' task being to select their preferred option from each pair. We also measured prandial suppression of circulating acyl-ghrelin (a centrally-acting orexigenic hormone signalling acute nutrient intake, and circulating leptin levels (providing an assay of energy reserves. We show both immediate and delayed effects on risky decision-making following a meal, and that these changes correlate with an individual's baseline leptin and changes in acyl-ghrelin levels respectively.We show that human risk preferences are exquisitely sensitive to current metabolic state, in a direction consistent with ecological models of feeding behaviour but not predicted by normative economic theory. These substantive effects of state changes on economic decisions perhaps reflect shared evolutionarily conserved neurobiological mechanisms. We suggest that this sensitivity in human risk-preference to current metabolic state has

Advances in mathematical economics

CERN Document Server

Yamazaki, Akira

2005-01-01

A lot of economic problems can be formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories. The series is designed to bring together those mathematicians who are seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking effective mathematical tools for their research. The editorial board of this series comprises the following prominent economists and mathematicians: Managing Editors: S. Kusuoka (Univ. Tokyo), T. Maruyama (Keio Univ.). Editors: R. Anderson (U.C. Berkeley), C. Castaing (Univ. Montpellier), F.H. Clarke (Univ. Lyon I), G. Debreu (U.C. Berkeley), E. Dierker (Univ. Vienna), D. Duffie (Stanford Univ.), L.C. Evans (U.C. Berkeley), T. Fujimoto (Okayama Univ.), J.-M. Grandmont...

STAKEHOLDER THEORY DAN KARYA KESELAMATAN SCHINDLER

Directory of Open Access Journals (Sweden)

Edward Nicodemus Lontah

2015-04-01

Donaldson and Peterson studies have shown that stakeholder theory has a more solid foundation than the epistemology of shareholder theory to analyze the performance of business ethics and moral duty of a company. This article discussed the business activities of Oskar Schindler, an industrialist war-profiteer during World War II. Schindler's business which was originally run by the government under the Nazi regime, eventually opposed the mission of economic and legal liability imposed by the regime. Schindler's transformation of vision and business mission in this article demonstrate the characteristics and connection of layers in descriptive, instrumental and normative stakeholder theory in the concept of "normative, instrumental and descriptive stakeholder theory" according to Donaldson and Peterson.

Probabilistic sensitivity analysis in health economics.

Science.gov (United States)

Baio, Gianluca; Dawid, A Philip

2015-12-01

Health economic evaluations have recently become an important part of the clinical and medical research process and have built upon more advanced statistical decision-theoretic foundations. In some contexts, it is officially required that uncertainty about both parameters and observable variables be properly taken into account, increasingly often by means of Bayesian methods. Among these, probabilistic sensitivity analysis has assumed a predominant role. The objective of this article is to review the problem of health economic assessment from the standpoint of Bayesian statistical decision theory with particular attention to the philosophy underlying the procedures for sensitivity analysis. © The Author(s) 2011.

Expansionary economic effects of energy conversion under stagnation

International Nuclear Information System (INIS)

Ono, Yoshiyasu

2013-01-01

After the Fukushima disaster, energy conversion such as nuclear power phaseout and deployment of renewable energy or survival of nuclear power had been actively argued pro and con. Both sides admitted extra costs were needed but their economic effects would be contrary dependent on business state. Under better economy, extra costs would be actual burden of total economy. Under stagnation as was long in Japan at present, extra costs brought about expansion of employment and economy with simulated consumption increase. Industry conversion would occur such industry intensively using power would depreciate and energy conserved industry would grow. Difference of power use intensity between industries made difficult in energy conversion because present Japanese industry constitution was mostly formed based on cheap power cost for industry use. Even taking account of international competition, the same would be true by adjusting finance balance sheet and currency exchange rate. (T. Tanaka)

Foundations of economic change

DEFF Research Database (Denmark)

Cantner, Uwe

2016-01-01

This paper employs the Schumpeterian approach to the development of economies in order to identify the core building blocks of a theory of endogenous economic change. Borders and insights are widened by combining concepts and findings from behavioral economics, from evolutionary economics, and from...... complexity economics. Actor heterogeneity, on the one hand, and mechanisms of actors’ interaction, on the other, are suggested to be fundamental elements of that theory. Theoretical analyses and empirical accounts are presented, achievements are discussed, and further avenues of research are suggested....

Keynesianism vs. Classical Economic Theory: European Refugee Crisis and the Fall of Multiculturalism

Directory of Open Access Journals (Sweden)

Aliaksei Igor Patonia

2017-09-01

Full Text Available Posing arguments against statistical evidence picturing the European Union as the key world economy, the research views the economic model of the EU through the prism of Hofstede’s cultural dimensions, explaining its lower resistance towards the global economic crisis and comparing it to China – a country with authoritarian governmental methods – that suffered to a significantly lesser extent. Based on the example of these two entities, the paper views the topic of the current refugee crisis in Europe representing it as a new crucial trial for the EU that potentially checks classical economic theory for consistency. According to the author, if found effective, in the foreseeable future it will form a sound basis for further development, if not – it will likely be replaced by the Keynesian paradigm. Thus, with the current refugee crisis in Europe, the author juxtaposes liberal economy with the state-regulated one. This is done to give hints at the importance of the crisis per se, as it is believed to be capable of shattering some of the fundamental principles of the current world order.

Analysis of North Korea's Nuclear Tests under Prospect Theory

International Nuclear Information System (INIS)

Lee, Han Myung; Ryu, Jae Soo; Lee, Kwang Seok; Lee, Dong Hoon; Jun, Eunju; Kim, Mi Jin

2013-01-01

North Korea has chosen nuclear weapons as the means to protect its sovereignty. Despite international society's endeavors and sanctions to encourage North Korea to abandon its nuclear ambition, North Korea has repeatedly conducted nuclear testing. In this paper, the reason for North Korea's addiction to a nuclear arsenal is addressed within the framework of cognitive psychology. The prospect theory addresses an epistemological approach usually overlooked in rational choice theories. It provides useful implications why North Korea, being under a crisis situation has thrown out a stable choice but taken on a risky one such as nuclear testing. Under the viewpoint of prospect theory, nuclear tests by North Korea can be understood as follows: The first nuclear test in 2006 is seen as a trial to escape from loss areas such as financial sanctions and regime threats; the second test in 2009 was interpreted as a consequence of the strategy to recover losses by making a direct confrontation against the United States; and the third test in 2013 was understood as an attempt to strengthen internal solidarity after Kim Jong-eun inherited the dynasty, as well as to enhance bargaining power against the United States. Thus, it can be summarized that Pyongyang repeated its nuclear tests to escape from a negative domain and to settle into a positive one. In addition, in the future, North Korea may not be willing to readily give up its nuclear capabilities to ensure the survival of its own regime

"Too much medicine": Insights and explanations from economic theory and research.

Science.gov (United States)

Hensher, Martin; Tisdell, John; Zimitat, Craig

2017-03-01

Increasing attention has been paid in recent years to the problem of "too much medicine", whereby patients receive unnecessary investigations and treatments providing them with little or no benefit, but which expose them to risks of harm. Despite this phenomenon potentially constituting an inefficient use of health care resources, it has received limited direct attention from health economists. This paper considers "too much medicine" as a form of overconsumption, drawing on research from health economics, behavioural economics and ecological economics to identify possible explanations for and drivers of overconsumption. We define overconsumption of health care as a situation in which individuals consume in a way that undermines their own well-being. Extensive health economics research since the 1960s has provided clear evidence that physicians do not act as perfect agents for patients, and there are perverse incentives for them to provide unnecessary services under various circumstances. There is strong evidence of the existence of supplier-induced demand, and of the impact of various forms of financial incentives on clinical practice. The behavioural economics evidence provides rich insights on why clinical practice may depart from an "evidence-based" approach. Moreover, behavioural findings on health professionals' strategies for dealing with uncertainty, and for avoiding potential regret, provide powerful explanations of why overuse and overtreatment may frequently appear to be the "rational" choice in clinical decision-making, even when they cause harm. The ecological economics literature suggests that status or positional competition can, via the principal-agent relationship in health care, provide a further force driving overconsumption. This novel synthesis of economic perspectives suggests important scope for interdisciplinary collaboration; signals potentially important issues for health technology assessment and health technology management policies; and

Transformation of the Terminological Apparatus of Economic Development of Innovation Activity under Conditions of Dynamic Changes in the External Environment

Directory of Open Access Journals (Sweden)

Sharko Margarita V.

2017-12-01

Full Text Available The aim of the article is to analyze the content interpretation of categorical concepts of economic development of production functioning under conditions of dynamic changes in the exploitation of the external environment. The article presents the author’s interpretation of the concepts of economic development and economic growth under conditions of dynamic changes in the external environment. The urgency of unification and systematization of the main interpretations of economic growth as a means of choosing and using certain management solutions under specific production conditions is substantiated. Based on the construction of the Ishikawa diagram, the reasons and difficulties of the economic growth of enterprises are graded. The conditions and factors of the conceptual apparatus of innovation activity under uncertainty are structured. It is shown that the complex application of iterative methods and methods of factor analysis provides a holistic perception of the dominant tendencies of economic development under conditions of dynamic changes in the external environment.

Consumer Capital as the Source of Happiness : The Missing Economic Theory Underlying the Income-Happiness Paradox

NARCIS (Netherlands)

van Hoorn, André; Sent, Esther-Mirjam

2016-01-01

Self-reported happiness does not generally increase with rising income, as established by Richard Easterlin. We argue that the subsequent debate in economics surrounding this income-happiness paradox has paid too little attention to the theoretical foundation for the expected positive relation

21st Century Environmental Challenges: The Need For a New Economics

OpenAIRE

Michie, Jonathan; Oughton, Christine

2011-01-01

Research on environmental economics and policy has been dominated by neoclassical theory. While there have been advances in this approach, including more sophisticated analysis of imperfect information and time, and the development of endogenous growth theory, neoclassical models contain a number of underlying characteristics that limit their relevance for modelling firm behaviour especially in relation to environmental issues, innovation and change. The limitations spring fundamentally from ...

Nonadiabatic theory of strong-field atomic effects under elliptical polarization

International Nuclear Information System (INIS)

Wang Xu; Eberly, J. H.

2012-01-01

Elliptically polarized laser fields provide a new channel for access to strong-field processes that are either suppressed or not present under linear polarization. Quantum theory is mostly unavailable for their analysis, and we report here results of a systematic study based on a classical ensemble theory with solution of the relevant ab inito time-dependent Newton equations for selected model atoms. The study's approach is necessarily nonadiabatic, as it follows individual electron trajectories leading to single, double, and triple ionizations. Of particular interest are new results bearing on open questions concerning experimental reports of unexplained species dependences as well as double-electron release times that are badly matched by a conventional adiabatic quantum tunneling theory. We also report the first analysis of electron trajectories for sequential and non-sequential triple ionization.

A feasible central limit theory for realised volatility under leverage

DEFF Research Database (Denmark)

Barndorff-Nielsen, Ole Eiler; Shephard, Neil

In this note we show that the feasible central limit theory for realised volatility and realised covariation recently developed by Barndor-Nielsen and Shephard applies under arbitrary diusion based leverage eects. Results from a simulation experiment suggest that the feasible version of the limit...

Prospect theory in the valuation of health.

Science.gov (United States)

Moffett, Maurice L; Suarez-Almazor, Maria E

2005-08-01

Prospect theory is the prominent nonexpected utility theory in the estimation of health state preference scores for quality-adjusted life year calculation. Until recently, the theory was not considered to be developed to the point of implementation in economic analysis. This review focuses on the research and evidence that tests the implementation of prospect theory into health state valuation. The typical application of expected utility theory assumes that a decision maker has stable preferences under conditions of risk and uncertainty. Under prospect theory, preferences are dependent on whether the decision maker regards the outcome of a choice as a gain or loss, relative to a reference point. The conceptual preference for standard gamble utilities in the valuation of health states has led to the development of elicitation techniques. Empirical evidence using these techniques indicates that when individual preferences are elicited, a prospect theory consistent framework appears to be necessary for adequate representation of individual health utilities. The relevance of prospect theory to policy making and resource allocation remains to be established. Societal preferences may not need the same attitudes towards risks as individual preferences, and may remain largely risk neutral.

How could differences in 'control over destiny' lead to socio-economic inequalities in health? A synthesis of theories and pathways in the living environment.

Science.gov (United States)

Whitehead, Margaret; Pennington, Andy; Orton, Lois; Nayak, Shilpa; Petticrew, Mark; Sowden, Amanda; White, Martin

2016-05-01

We conducted the first synthesis of theories on causal associations and pathways connecting degree of control in the living environment to socio-economic inequalities in health-related outcomes. We identified the main theories about how differences in 'control over destiny' could lead to socio-economic inequalities in health, and conceptualised these at three distinct explanatory levels: micro/personal; meso/community; and macro/societal. These levels are interrelated but have rarely been considered together in the disparate literatures in which they are located. This synthesis of theories provides new conceptual frameworks to contribute to the design and conduct of theory-led evaluations of actions to tackle inequalities in health. Copyright © 2016 The Authors. Published by Elsevier Ltd.. All rights reserved.

The Rights of Private Economic Actors Under the World Trade Organization Agreements in Indonesia

Directory of Open Access Journals (Sweden)

Intan Soeparna

2012-09-01

Full Text Available Nothing in the Uruguay Round mentions directly about rights of private economic actors. It seems that the relationship to private economic actors (or may be individual does not exist within the WTO Agreements, because as a general rule, private parties are not legal subjects of the international legal order. However, this article will prevail upon this situation, by looking closer at the essence of the WTO Agreements to discern the rights of private economic actors that derive from the WTO. The main question of this article is to what extent then Indonesia is dealing with the rights of private economic actors under the WTO Agreements? The background of this questionis because four years after ratifying the WTO Agreements, Indonesia has been facing what is arguably the most serious multidimensional crisis in 1997, some difficult situations have arisen from the crisis; therefore, the society hesitated to accept the open world trading system. The society seemed look askance to the implementation of the WTO Agreements. But Indonesian Government took major step to reduce the skepticism of society toward liberalization, by readjusting its national laws conform to the WTO Agreements with the intention to support the rights of national economic actors under the WTO Agreements in order to achieve total benefits of the WTO rules.

Economics of Convention and New Economic Sociology

DEFF Research Database (Denmark)

Jagd, Søren

2007-01-01

The aim of the article is to explore potential common themes in economic sociology and economics of conventions. The article explores two issues raised by economics of conventions that may be of particular importance to economic sociology. First, the explicit exploration of the consequences...... of a plurality of forms of justification, as elaborated in économie de la grandeur. This perspective was recently taken up in economic sociology by David Stark's introduction of the notion ‘sociology of worth'. The second issue, recently suggested by André Orléan, is the need to denaturalize economic theory...... and economic action to demonstrate the social constructed nature of economic action. It is argued that these two issues demonstrate that a fruitful dialogue is indeed possible between economic sociology and economics of convention and should be encouraged....

Quest for a New Paradigm in Economics - A Synthesis of Views of the New Economics Working Group

Directory of Open Access Journals (Sweden)

Garry Jacobs

2017-05-01

Full Text Available The remarkable economic achievements of the past two centuries have cast an illusion of omniscience on the discipline of Economics, which even repeated catastrophic policy failures have still not entirely banished. The gap and disjuncture between prevailing economic wisdom and its effective application to promote human welfare and well-being are enormous and widening rapidly. The gap between current economic performance and the economic potential of global society has never been greater. Both have been aggravated by the rapid evolution of economy and society in recent decades. An ideology masquerading as scientific theory, mainstream theory fails to provide the necessary insights to guide us through the next phase of global social evolution. This paper summarizes major conclusions from a series of meetings organized by the World Academy of Art & Science over the past half-decade. It examines important premises and principles of a transdisciplinary framework for ecologically-sustainable, human-centered development founded on knowledge of the underlying social processes that govern human accomplishment and social evolution. It challenges the implicit values and assumptions on which current theory and practice are based. It exposes the central role played by social power in determining the operations of economy and the distribution of benefits in society. It seeks to construct a holistic paradigm to reunite and integrate thinking about economy with the political, legal, social, organizational, ecological and psychological dimensions of which economy has always been an inseparable part. It points to the need for a transnational theoretical framework as a unit of analysis and emphasizes a global perspective, which aims to maximize the well-being of humanity as a whole. In recent times, growing awareness of the limitations of the present economic system and the real planetary boundaries and ecological constraints on unlimited growth has overshadowed

Preferences UnderUncertainty and the Deficiencies of the Expected Utility Model

OpenAIRE

Murat Tasdemir

2007-01-01

In economics, the prevailing framework to explain preferences under uncerta- inty is the Expected Utility theory. Despite its widespread use, the Expected Utility theory is not free from problems. Experimental and empirical works shows that, in real life, the choices of individuals among risky alternatives conflict with the axioms of the Expected Utility theory. This study, in the light of experimental studies, investigates the problems with the Expected Utility theory regarding the individua...

Price Theory and Money Coupled: some Remarks on the Ayres-Martinás Theory

Directory of Open Access Journals (Sweden)

Zsolt Gilanyi

2013-01-01

Full Text Available The main concern of economic science is to explain the Wealth of Nations. This tradition implies on the one hand, that wealth must be evaluated i.e.: economic science must elaborate a price theory; on the other hand, money should be integrated in economic theories because prices are expressed in monetary terms. Mainstream economic theory succeeds in price determination (with some limits but fails on money integration, while non-mainstream monetary models succeed on money integration but fail on price determination. In this paper I argue that the Ayres-Martinás theoretical framework is a promising tentative to cope with this challenge of economic science.

Economic dispatch of a single micro-gas turbine under CHP operation

International Nuclear Information System (INIS)

Rist, Johannes F.; Dias, Miguel F.; Palman, Michael; Zelazo, Daniel; Cukurel, Beni

2017-01-01

Highlights: •Economic dispatch of a micro gas turbine is considered for smart grid integration. •A detailed thermodynamic cycle analysis is conducted for variable load CHP operation. •Benefits are shown for case studies with real demand profiles and energy tariffs. •Optimal unit schedule can be electricity, heat, revenue or maintenance-cost driven. -- Abstract: This work considers the economic dispatch of a single micro-gas turbine under combined heat and power (CHP) operation. A detailed thermodynamic cycle analysis is conducted on a representative micro-gas turbine unit with non-constant component efficiencies and recuperator bypass. Based on partial and full load configurations, an accurate optimization model is developed for solving the economic dispatch problem of integrating the turbine into the grid. The financial benefit and viability of this approach is then examined on four detailed scenarios using real data on energy demand profiles and electricity tariffs. The analysis considers the optimal operation in a large hotel, a full-service restaurant, a small hotel, and a residential neighborhood during various seasons. The optimal schedule follows four fundamental economic drivers which are electricity, heat, revenue, and maintenance-cost driven.

Decision making under time pressure, modeled in a prospect theory framework.

Science.gov (United States)

Young, Diana L; Goodie, Adam S; Hall, Daniel B; Wu, Eric

2012-07-01

The current research examines the effects of time pressure on decision behavior based on a prospect theory framework. In Experiments 1 and 2, participants estimated certainty equivalents for binary gains-only bets in the presence or absence of time pressure. In Experiment 3, participants assessed comparable bets that were framed as losses. Data were modeled to establish psychological mechanisms underlying decision behavior. In Experiments 1 and 2, time pressure led to increased risk attractiveness, but no significant differences emerged in either probability discriminability or outcome utility. In Experiment 3, time pressure reduced probability discriminability, which was coupled with severe risk-seeking behavior for both conditions in the domain of losses. No significant effects of control over outcomes were observed. Results provide qualified support for theories that suggest increased risk-seeking for gains under time pressure.

Racionalnost managerskih odkupov z vidika vedenjske ekonomije = Rationality of Management Buyout from the Behavioural Economics Theory

Directory of Open Access Journals (Sweden)

Gregor Žvipelj

2011-06-01

Full Text Available The theory of behavioral economics examines the behavior of individualsin markets in order to examine, explain and predict individualbehavior. The psychology of behavior has evolved in order to explainthe impact of emotions and most common cognitive errors in thedecision-making process of individuals. Psychological and sociologicalaspects, which can be explained by a qualitative case study, are used tounderstand their behavior. In this paper we shall analyse the rationalityof management behavior from the Behavioral Economy perspectivethrough a plural case study. The conclusions drawn from our researchshow that non-economic factors, such as overconfidence, arrogance,greed and optimism significantly contribute to the management buyoutdecision.

The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes

NARCIS (Netherlands)

Gómez-Baggethun, E.; Groot, de R.S.; Lomas, P.; Sotelo Montes, C.

2010-01-01

This paper reviews the historic development of the conceptualization of ecosystem services and examines critical landmarks in economic theory and practice with regard to the incorporation of ecosystem services into markets and payment schemes. The review presented here suggests that the trend

Toward a Metatheory of Economic Bubbles

DEFF Research Database (Denmark)

Dholakia, Nikhilesh; Turcan, Romeo V.

Dholakia and Turcan present their interdisciplinary metatheory of bubbles with short case studies of minor and major bubbles. They comprehensively identify and exemplify constructs of the theory, set its temporal and contextual boundaries, and examine the underlying economic, psychological......, and social dynamics assumptions, explaining how these elements are related. By doing so, they provide a partial window into the precarious nature of contemporary finance-driven capitalism and suggest some possible ways of overcoming the wrenching ups and downs of the prevalent system. The case studies...... and original research in Toward a Metatheory of Economic Bubbles have far-reaching implications for the study and practice of entrepreneurship and marketing, public and corporate finance, and public policies towards innovation, economy, and finance. It contributes to the defining issues for economic sociology...

METHODOLOGICAL FEATURES OF HISTORICAL TYPES OF ECONOMIC THEORY'S SCIENTIFIC RATIONALITY IN TERMS OF MODERN PHILOSOPHY OF SCIENCE

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T. Gaidai

2015-10-01

Full Text Available The article studies the evolution of basic methodological features of economic theory on its different historical stages.The research highlights the fruitful usage of a new analytical approach on the basis of the achievements of modern philosophy of science. Its presents the research of main types of scientific rationality dominating at certain historical stages of science maturity. Such as historical, classical, nonclassical and postnonclassical types of scientific rationality. Structuring and research of basic methodological features of such historical types of economic theory’s scientific rationality as classical economics (end of ХVII century – 70-th of XIX century, nonclassical economics (70-th of ХІХ century – 70-th of ХХ century, postnonclassical economics (70-th of ХХст. – the beginning of ХХI century are undertaken. Methodological analysis accentuated ideological, ontological, epistemological dominants and main differences in basic techniques of the main types of economic theory’s scientific rationality. The research argues the illegality of existing in the economics literature attempts to identification or simplified reduction of more mature types of scientific rationality to the less mature. The article shows the contribution made by the leaders of classical, nonclassical and postnonclassical economics in the development of normative and positive economic methodology. It is emphasized a general tendency to methodological pluralism, pluralism of paradigmal structureand interdisciplinary of scientific economic knowledge throughout its historical development.

The implementation of interest-based entrepreneurship curriculum in the Theory of Economics course

Science.gov (United States)

Surjanti, J.; Nugrohoseno, D.; Budiono; Musfidah, H.

2018-01-01

College and university are educational institutions and they should be able to design entrepreneurship program in order to strengthen creativity and innovation. Potential grown-up citizens potential is the main problem of national development solved through the role of universities by reconstructing the curriculum based on 2016 Indonesian National Curriculum Framework. The interest of building entrepreneurship becomes the work of all elements which one of them is a university. Reconstructing interest-based entrepreneurship curriculum is the first step to construct characterized economic. Economics lecturers have a responsibility to develop the curriculum. This study aimed to explore the interest in entrepreneurship used to develop the contextual learning using problem-based learning (PBL) method that refers to Universitas Negeri Surabaya’s motto “Growing with character” and integrated into 2016 Indonesian National Curriculum Framework. This study was qualitative explorative. The subjects of the study are 86 students in their first semester. The objective of the study was curriculum development interest-based entrepreneurship in the theory of economics course. The results of the study showed that the interest-based entrepreneurship curriculum was able to reach the targeted learning outcome as well as to create a product in the culinary and services project in Wonorejo mangrove forest according to students’ interests.

Trust, Personal Moral Codes, and the Resource-Advantage Theory of Competition: Explaining Productivity, Economic Growth, and Wealth Creation

Directory of Open Access Journals (Sweden)

Shelby D. Hunt

2012-06-01

Full Text Available Scholars agree that societal-level moral codes that promote social trust also promote wealth creation.  However, what specific kinds of societal-level moral codes promote social trust?  Also, by what specific kind of competitive process does social trust promote wealth creation?  Because societal-level moral codes are composed of or formed from peoples’ personal moral codes, this article explores a theory of ethics, known as the “Hunt-Vitell” theory of ethics, that illuminates the concept of personal moral codes and uses the theory to discuss which types of personal moral codes foster trust and distrust in society.  This article then uses resource-advantage (R-A theory, one of the most completely articulated dynamic theories of competition, to show the process by which trust-promoting, societal-level moral codes promote productivity and economic growth.  That is, they promote wealth creation.

How do Economic Crises Impact Firm Boundaries?

DEFF Research Database (Denmark)

Foss, Kirsten

2010-01-01

How economic crises impact the boundaries of firms has been offered virtually no attention in the literature on the theory of the firm. I review the best-known theories of the firm and identify the variables that matter for the explanation of firm boundaries. I then examine how an economic crisis...... may impact these variables and change efficient firm boundaries. The various theories of the firm have difficulties explaining how firms efficiently adapt their boundaries to such prominent characteristics of economic crisis as declining demand and increased costs of external finance. However, all...... these theories stress uncertainty as an antecedent of firm organization, and as uncertainty is also an important characteristic of an economic crisis I examine how uncertainty is allowed to play out in the various theories in order to identify what predictions we can derive from the theory regarding changes...

Information structures in economics studies in the theory of markets with imperfect information

CERN Document Server

Nermuth, Manfred

1982-01-01

This book is intended as a contribution to the theory of markets with imperfect information. The subject being nearly limitless, only certain selected topics are discussed. These are outlined in the Introduction (Ch. 0). The remainder of the book is divided into three parts. All results of economic significance are contained in Parts II & III. Part I introduces the main tools for the analysis, in particular the concept of an information structure. Although most of the material presented in Part I is not original, it is hoped that the detailed and self-contained exposition will help the reader to understand not only the following pages, but also the existing technical and variegated literature on markets with imperfect information. The mathematical prerequisites needed, but not explained in the text rarely go beyond elementary calculus and probability theory. Whenever more advanced concepts are used, I have made an effort to give an intuitive explanation as well, so that the argument can also be followed o...

Network versus Economic Incentives

DEFF Research Database (Denmark)

Larsen, Christian Albrekt

The article supplements the traditional economic line of reasoning with an economic sociological account of the transition from unemployment to employment. The lack of full information is recognised by economic theory while the focus on network within the tradition of economic sociology has...... not been adopted. The article argues that the importance of network actually might be very well understood within recent economic theories that emphasise the lack of full information. The empirical evidence for the importance of network both for employed and unemployed is provided by analysing a best case...... might be an important part of the vicious circles of unemployment. Finally, the article analyse the importance of network versus the importance of economic incentives. The result supports the thesis that economic sociology provides a better account of the transition from unemployment to employment than...

A PLEA FOR INTRODUCING CONSPIRATORIAL REASONING IN ECONOMICS

Directory of Open Access Journals (Sweden)

Mădălina CALANCE

2014-04-01

Full Text Available Along with the economic globalization, economics must decode a more complex reality, to which classical answers are no longer helpful. Due to excessive abstraction and mathematical representation, the economic and social phenomena are partially analyzed and understood - after the delimitation from the political context that has driven and maintained them. We notice that, throughout history, global economic relations have always been altered by the achievement instinct or by the desire for power; that markets and natural order had been violated due to the interventionist factor which takes various forms: the state, the elites or groups animated by particular interests. That is why conspiracy theories can be starting points in analyzing our world, by underlying specific political and economic interests that govern the public decision system. This paper aims to plead for introducing conspiratorial reasoning in economics; a reasoning that rejects total hazard and the limits imposed by the study of unintended consequences of economic phenomena.

Economic costs of extratropical storms under climate change: An application of FUND

NARCIS (Netherlands)

Narita, D.; Anthoff, D.; Tol, R.S.J.

2010-01-01

Extratropical cyclones have attracted some attention in climate policy circles as a possible significant damage factor of climate change. This study conducts an assessment of economic impacts of increased storm activities under climate change with the integrated assessment model FUND 3.5. In the

Managing Bad Loans of Domestic Banks under Modern Economic Conditions

OpenAIRE

Bolhar Tetyana M.

2014-01-01

The article considers main methods of management of bad bank loans under modern economic conditions, conducts analysis of internal and external banking methods used by Ukrainian banks, and specifies and identifies their advantages and shortcomings. In the result of the study the article analyses in detail the use of the methods of rehabilitation and liquidation of bad loans. It considers organisation of internal and external banking methods of liquidation of bad loans, considers mechanism of ...

REFERENCE MODELS OF ENDOGENOUS ECONOMIC GROWTH

OpenAIRE

GEAMĂNU MARINELA

2012-01-01

The new endogenous growth theories are a very important research area for shaping the most effective policies and long term sustainable development strategies. Endogenous growth theory has emerged as a reaction to the imperfections of neoclassical theory, by the fact that the economic growth is the endogenous product of an economical system.

Decision making under time pressure, modeled in a prospect theory framework

Science.gov (United States)

Young, Diana L.; Goodie, Adam S.; Hall, Daniel B.; Wu, Eric

2012-01-01

The current research examines the effects of time pressure on decision behavior based on a prospect theory framework. In Experiments 1 and 2, participants estimated certainty equivalents for binary gains-only bets in the presence or absence of time pressure. In Experiment 3, participants assessed comparable bets that were framed as losses. Data were modeled to establish psychological mechanisms underlying decision behavior. In Experiments 1 and 2, time pressure led to increased risk attractiveness, but no significant differences emerged in either probability discriminability or outcome utility. In Experiment 3, time pressure reduced probability discriminability, which was coupled with severe risk-seeking behavior for both conditions in the domain of losses. No significant effects of control over outcomes were observed. Results provide qualified support for theories that suggest increased risk-seeking for gains under time pressure. PMID:22711977

The Philosophy of Information as an Underlying and Unifying Theory of Information Science

Science.gov (United States)

Tomic, Taeda

2010-01-01

Introduction: Philosophical analyses of theoretical principles underlying these sub-domains reveal philosophy of information as underlying meta-theory of information science. Method: Conceptual research on the knowledge sub-domains in information science and philosophy and analysis of their mutual connection. Analysis: Similarities between…

French Economics of Convention and Economic Sociology

DEFF Research Database (Denmark)

Jagd, Søren

foundation of markets and of money may be an occasion for economic sociology to focus even more on elaborating on the institutional void created by traditional economic theory. A second point is that economic sociology could benefit from the perspective of a plurality of forms of coordination involved......The French Economics of convention tradition has developed to be an influential research tradition situated in the area between economics and sociology. The aim of the paper is to explore some of the themes that may be common to economics of conventions and economic sociology by looking more...... closely into three recent texts from the economics of convention tradition discussing, in slightly different ways, differences and similarities between economics of convention and economic sociology. It is argued that André Orléan’s point that a common aim could be to ‘denaturalise’ the institutional...

Modelling regional cropping patterns under scenarios of climate and socio-economic change in Hungary.

Science.gov (United States)

Li, Sen; Juhász-Horváth, Linda; Pintér, László; Rounsevell, Mark D A; Harrison, Paula A

2018-05-01

Impacts of socio-economic, political and climatic change on agricultural land systems are inherently uncertain. The role of regional and local-level actors is critical in developing effective policy responses that accommodate such uncertainty in a flexible and informed way across governance levels. This study identified potential regional challenges in arable land use systems, which may arise from climate and socio-economic change for two counties in western Hungary: Veszprém and Tolna. An empirically-grounded, agent-based model was developed from an extensive farmer household survey about local land use practices. The model was used to project future patterns of arable land use under four localised, stakeholder-driven scenarios of plausible future socio-economic and climate change. The results show strong differences in farmers' behaviour and current agricultural land use patterns between the two regions, highlighting the need to implement focused policy at the regional level. For instance, policy that encourages local food security may need to support improvements in the capacity of farmers to adapt to physical constraints in Veszprém and farmer access to social capital and environmental awareness in Tolna. It is further suggested that the two regions will experience different challenges to adaptation under possible future conditions (up to 2100). For example, Veszprém was projected to have increased fallow land under a scenario with high inequality, ineffective institutions and higher-end climate change, implying risks of land abandonment. By contrast, Tolna was projected to have a considerable decline in major cereals under a scenario assuming a de-globalising future with moderate climate change, inferring challenges to local food self-sufficiency. The study provides insight into how socio-economic and physical factors influence the selection of crop rotation plans by farmers in western Hungary and how farmer behaviour may affect future risks to agricultural

Decision-making under risk. An overview of some alternative utility theories

International Nuclear Information System (INIS)

Pauwels, N.; Van Woensel, T.

1998-09-01

Decision-makers often have to take decisions with unknown consequences that depend on various events which on their turn can take place a certain chance. Under the given circumstances, the traditional decision criterion is based on the maximisation of the expected benefits. Experimental studies have however revealed important inconsistencies between decisions taken on the basis of this decision criterion on the one hand and the observed decisions on the other hand. The report gives an overview of a number of alternative theories extending or adapting the traditional theory in view of avoiding the observed inconsistencies

A hermeneutic science: health economics and Habermas.

Science.gov (United States)

Small, Neil; Mannion, Russell

2005-01-01

Mainstream health economics labours under a misleading understanding of the nature of the topic area and suffers from a concomitant poverty of thinking about theory and method. The purpose here is to explore this critical position and argue that health economics should aspire to being more than a technical discipline. It can, and should, engage with transformative discourse. It is argued that the hermeneutic sciences, emphasising interpretation not instrumentality or domination, offer a route into the change to which one seeks to contribute. The article specifically focuses on the way Habermas provides insights in his approach to knowledge, reason and political economy. How he emphasises complexity and interaction within cultural milieu is explored and primacy is given to preserving the life-world against the encroachments of a narrow rationalization. The argument for a critical re-imagining of health economics is presented in three stages. First, the antecedents, current assumptions and critical voices from contemporary economics and health economics are reviewed. Second, the way in which health is best understood via engaging with the complexity of both the subject itself and the society and culture within which it is embedded is explored. Third, the contribution that hermeneutics, and Habermas' critical theory, could make to a new health economics is examined. The paper offers a radical alternative to health economics. It explores the shortcomings of current thinking and argues an optimistic position. Progress via reason is possible if one reframes both in the direction of communication and in the appreciation of reflexivity and communality. This is a position that resonates with many who challenge prevailing paradigms, in economics and elsewhere.

Revealed Preference Theory, Rationality, and Neoclassical ...

African Journals Online (AJOL)

Revealed Preference Theory (Samuelson 1938) is an attempt to establish economic theory as a genuine empirical science by ridding it of nonempirical psychological concepts. Samuelson's goal was to rid economic theory of the last vestiges of utility analysis. Samuelson structured his theory on a set of preference axioms ...

Free Competition Theory and the secret agreements between companies. Saint-Gobain under the charges of cartel

Directory of Open Access Journals (Sweden)

Andreas STAMATE

2011-12-01

Full Text Available The European view of economic competition, which is the European Parliament view and enforced by the European Commission does not have a coherent theory of efficiency in allocating resources and justice on a market. The positive law proceeds at incriminating and penalizing with arbitrarily fixed fines the players on different markets but not offering a definition of what competition or free market means, not to mention a theory of the firm. It delivers, of course, a sort of theory, but we argue that it is not coherent and moreover, pretends to be what it cannot possible be, nam¬ely free of any value judgments. The present paper exposes an alternative view to the theory used by EC when decided to fine with 1.4 billion euros the European car glass suppliers Saint-Gobain, Pilkington, AGC and Soliver for cartelizing, and it also presents the case from the perspective of free competition theory based on private property rights of owners.

Economic Design of Things

NARCIS (Netherlands)

Can, Burak

2017-01-01

Economics is a social science, so is economic design as a field. This short article discusses, in particular, the future of economic design, and of economic theory in general. By suggesting some examples, I hope to convince the readers that the recent technological advances in science and technology

The role of material/energy resources and dematerialisation in economic growth theories

Energy Technology Data Exchange (ETDEWEB)

Ayres, R.U. [Center for the Management of Environmental Resources INSEAD, Fountainebleau (France); Van den Bergh, J.C.J.M. [Department of Spatial Economics, Free University, Amsterdam (Netherlands)

2000-06-01

The nature of energy and material resources in an endogenous growth theory framework is clarified. This involves three modifications of the conventional theory. Firstly, multiple feedback mechanisms or 'growth engines' are identified. Secondly, a production function distinguishes between resource use, technical efficiency and value creation. Thirdly, the impact of the cost of production through demand on growth is accounted for. A formal model is analytically solved under a condition of a constant growth rate. Given model complexity, numerical experiments are performed as well, providing relevant insights to the academic and political debates on 'environmental Kuznets curves' and 'dematerialization'. 49 refs.

Economic aspects of low labour-income farming

NARCIS (Netherlands)

Luning, H.A.

1967-01-01

Conflicting views on the relevance of economic theory, as developed in the West, to low-income peasant societies had been advanced ever since Boeke's time.

Recent literature pointed out that available economic theories did not seem to fit the behavioral motivation, assumed in economic logic. The

Economic Sociology and Economics of Convention

DEFF Research Database (Denmark)

Jagd, Søren

This paper is part of a larger exploration of the French Economics of Convention tradition. The aim of the paper is to explore potential themes of common interest to economic sociology and Economics of Conventions. The paper is in two parts. First, I summarise the main theoretical features of EC...... the institutional framework of social action. Second, I explore two issues raised by economics of conventions that may be particularly important to consider for economic sociology. The first issue is the explicit exploration of the consequences of a plurality of forms of justification suggested by Luc Boltanski...... and Laurent Thévenot in ‘économie de la grandeur’. This perspective has already been taken up in economic sociology in David Stark’s notion of a ‘Sociology of Worth’. The second issue, recently suggested by André Orléan, is the need to denaturalise economic theory and economic action to demonstrate the social...

76 FR 71933 - Office of the Under Secretary, Research, Education, and Economics; Notice of the Advisory...

Science.gov (United States)

2011-11-21

... DEPARTMENT OF AGRICULTURE Office of the Under Secretary, Research, Education, and Economics; Notice of the Advisory Committee on Biotechnology and 21st Century Agriculture Meeting AGENCY... Secretary, Research, Education and Economics. [FR Doc. 2011-30027 Filed 11-18-11; 8:45 am] BILLING CODE 3410...

Economic growth, inequality, and the economic position of the poor in 1985-1995: an international perspective.

Science.gov (United States)

Kangas, Olli

2002-01-01

The "trickle-down" theory argues that wider income differences are good for economic growth, that growth is good for the poor, and therefore that widening income disparities benefit the poor. The theory thus fulfills Rawlsian principles of justice. The purpose of this article is to present a preliminary evaluation of the correctness of this theory. Income data for 21 countries were obtained from the Luxembourg Income Study, for the period 1985-95. The results of the analysis show no clear connections between inequality and economic prosperity. The wider the inequality, the worse is the absolute income of the poor. In this respect the theory is falsified. However, the trickle-down theory is partly correct in arguing for the beneficial effects of economic growth for the poor: the absolute income level of the poor is dependent on what is happening in the national economy, while the incidence and depth of poverty in advanced countries are not so much associated with economic factors as a result of national social policy programs.

13 CFR 123.603 - What is the interest rate on an economic injury disaster loan under this subpart?

Science.gov (United States)

2010-01-01

... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false What is the interest rate on an... September 11, 2001 Terrorist Attacks § 123.603 What is the interest rate on an economic injury disaster loan under this subpart? Your economic injury disaster loan under this subpart will have an interest rate of...

Democracy, Citizen Sovereignty and Constitutional Economics

OpenAIRE

Vanberg, Viktor J.

2006-01-01

This paper is an exercise in conceptual clarification. Its purpose is to explore the contribution that constitutional economics can make to the theory of democracy. Constitutional economics as the economics of rules is concerned with the study of how the choice of rules in the social, economic and political realm affects the nature of the processes of human interaction that evolve within these rules. The theory of democracy is concerned with institutionalorganizational problems of self-govern...

J.M. Keynes and His Economic Theory: an Ethical Perspective

Directory of Open Access Journals (Sweden)

Stanislav N. Ivaskovsky

2016-01-01

Full Text Available The article examines the philosophical and moral foundations of the biggest economist and political philosopher of the 20th century John Maynard Keynes (1883-1946, who played an important role in rethinking a number of important provisions of the classical political economy and in creating the ideological and methodological basis of the "Keynesian revolution" and of the new field of economic analysis-macroeconomics. The author traces the main stages in the formation of ethical views of Keynes, shows that his interest in ethics as the system of values in society was dictated by the need for the new conceptual vision of economic realities and by the search of an answer to the main ethical question: "What should we do?". Attention is drawn to the fact that an understanding of the ethical orientation of economic theory by Keynes allowed him to take a critical stance towards traditional individualism and Victorian morality of thrift and moneymaking and to conclude that rational and "right" forms of individual behaviour are not a guarantee of the prosperity of society as a whole. To achieve the latter Keynes justified the necessity of "central control" by the State of the overall level of aggregate expenditure. It isstressed that the ethical views of Keynes correspond with the concept of the "ethic of responsibility"- a relatively new scientific discipline, which originated as a response to the risks of technogenic era: pollution, resource constraints, overpopulation, lack of stability of the world economy. The final part of the article analyzes one of the most important, from the point of view of Keynes, vices of capitalism - reckless proclivity of people to the multiplication of "abstract monetary wealth". It is shown that it doesn't only disfigure the psyche and consciousness of people, but also changes the direction of development of the market economy towards "speculative capitalism", which creates a threat to civilization, creativity, well

On the economic analysis of problems in energy efficiency: Market barriers, market failures, and policy implications

International Nuclear Information System (INIS)

Sanstad, A.H.; Koomey, J.G.; Levine, M.D.

1993-01-01

In his recent paper in The Energy Journal, Ronald Sutherland argues that several so-called ''market barriers'' to energy efficiency frequently cited in the literature are not market failures in the conventional sense and are thus irrelevant for energy policy. We argue that Sutherland has inadequately analyzed the idea of market barrier and misrepresented the policy implications of microeconomics. We find that economic theory, correctly interpreted, does not provide for the categorical dismissal of market barriers. We explore important methodological issues underlying the debate over market barriers, and discuss the importance of reconciling the findings of non-economic social sciences with the economic analysis of energy demand and consumer decision-making. We also scrutinize Sutherland's attempt to apply finance theory to rationalize high implicit discount rates observed in energy-related choices, and find this use of finance theory to be inappropriate

On the economic analysis of problems in energy efficiency: Market barriers, market failures, and policy implications

Energy Technology Data Exchange (ETDEWEB)

Sanstad, A.H.; Koomey, J.G.; Levine, M.D.

1993-01-01

In his recent paper in The Energy Journal, Ronald Sutherland argues that several so-called ``market barriers`` to energy efficiency frequently cited in the literature are not market failures in the conventional sense and are thus irrelevant for energy policy. We argue that Sutherland has inadequately analyzed the idea of market barrier and misrepresented the policy implications of microeconomics. We find that economic theory, correctly interpreted, does not provide for the categorical dismissal of market barriers. We explore important methodological issues underlying the debate over market barriers, and discuss the importance of reconciling the findings of non-economic social sciences with the economic analysis of energy demand and consumer decision-making. We also scrutinize Sutherland`s attempt to apply finance theory to rationalize high implicit discount rates observed in energy-related choices, and find this use of finance theory to be inappropriate.

Institutions, Entrepreneurship, and Economic Growth

DEFF Research Database (Denmark)

Bjørnskov, Christian; Foss, Nicolai Juul

2016-01-01

sample limitations, omitted variable biases, causality issues, and response heterogeneity. We argue that theories in management research, such as the resource-based view, transaction cost economics, and strategic entrepreneurship theory, can fill some of the conceptual and theoretical gaps.......We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on empirical research. Most of the literature has an economics orientation, but we also review relevant literature from other social sciences, including management research...

[Issue of population quality under economic reform].

Science.gov (United States)

Zhu, G

1991-02-01

Under the current economic reform program, various problems about the quality of the population have emerged; dropping out of school is one such problem. In recent years, dropping out of school, has become a prevalent phenomenon. It was estimated that between 1980 and 1987, 40 million primary and middle school students dropped out of school. Drop-outs occurred mostly in primary and middle schools and in rural areas. The reasons for dropping out can be summarized as follows: 1) families could not afford to pay for tuition, 2) students were not able to keep up with school work, and 3) families or students were influenced by other students who had dropped out. In weighing the cost and benefit of attending school, parents would decide whether or not and for how many years to send their children to school. The costs included both direct costs and opportunity costs. Children in urban areas have practically no opportunity costs, while those in rural areas do. Dropping out has been more prevalent among girls than boys. Since girls marry into other families, parents were less willing to invest in their education. On the other hand, the school curriculum gave more emphasis to preparing students for advanced studies than to relaying practical knowledge. Parents did not feel there was any advantage for their children to spend more time in school. Rural economic reform had strengthened the decision-making function of the family in the area of investment. It has also widened the gap between the rich and the poor. For less affluent families, it has become more and more difficult to bear the increasing cost of education. To deal with this problem, the author made several suggestions: 1) persuade parents to continue sending children to school 2) set regulations forbidding the employment of school age children 3) forbid schools to collect unauthorized feeds and establish scholarships to help economically disadvantaged students, 4) develop more vocational schools and change the

Using the Music Industry To Teach Economic Principles.

Science.gov (United States)

Stamm, K. Brad

The key purpose of this paper is to provide economics and business professors, particularly those teaching principles courses, with concrete examples of economic theory applied to the music industry. A second objective is to further the interest in economic theory among business majors and expose non-majors to economic principles via real world…

Benefits of economic criteria for water scarcity management under global changes: insights from a large-scale hydroeconomic framework

Science.gov (United States)

Neverre, Noémie; Dumas, Patrice; Nassopoulos, Hypatia

2016-04-01

Global changes are expected to exacerbate water scarcity issues in the Mediterranean region in the next decades. In this work, we investigate the impacts of reservoirs operation rules based on an economic criterion. We examine whether can they help reduce the costs of water scarcity, and whether they become more relevant under future climatic and socioeconomic conditions. We develop an original hydroeconomic model able to compare future water supply and demand on a large scale, while representing river basin heterogeneity. On the demand side, we focus on the two main sectors of water use: the irrigation and domestic sectors. Demands are projected in terms of both quantity and economic value. Irrigation requirements are computed for 12 types of crops, at the 0.5° spatial resolution, under future climatic conditions (A1B scenario). The computation of the economic benefits of irrigation water is based on a yield comparison approach between rainfed and irrigated crops. For the domestic sector, we project the combined effects of demographic growth, economic development and water cost evolution on future demands. The economic value of domestic water is defined as the economic surplus. On the supply side, we evaluate the impacts of climate change on water inflows to the reservoirs. Operating rules of the reservoirs are set up using a parameterisation-simulation-optimisation approach. The objective is to maximise water benefits. We introduce prudential parametric rules in order to take into account spatial and temporal trade-offs. The methodology is applied to Algeria at the 2050 horizon. Overall, our results show that the supply-demand imbalance and its costs will increase in most basins under future climatic and socioeconomic conditions. Our results suggest that the benefits of operating rules based on economic criteria are not unequivocally increased with global changes: in some basins the positive impact of economic prioritisation is higher under future conditions

The implications of migration theory for distributive justice

OpenAIRE

Sager, Alex

2012-01-01

This paper explores the implications of empirical theories of migration for normative accounts of migration and distributive justice. It examines neo-classical economics, world-systems theory, dual labor market theory, and feminist approaches to migration and contends that neo-classical economic theory in isolation provides an inadequate understanding of migration. Other theories provide a fuller account of how national and global economic, political, and social institutions cause and shape m...

Theories of the firm as a foundation for formulating accounting theories

Directory of Open Access Journals (Sweden)

José Glauber Cavalcante dos Santos

2015-03-01

Full Text Available This paper develops an essay concerning the conceptual extension derived from the theory of the firm and its relationship to prevailing accounting theories, summarizes the main currents that try to explain the firm and seeks to establish a relationship with changes of direction in the object and purpose of accounting, as expressed in current accounting research. It is argued that the actual concept of “firm” ends up guiding an informational logic that is deep-rooted in accounting by means of the interpretations absorbed by accounting theory. The discussion centers on the object of accounting theory (registration and disclosure of economic aggregates as intended for accounting information users. The neoclassical theory of the firm, the contractual theory of the firm and the New Institutional Economics (NIE are used for support, focused on transactional costs, property rights and measurement costs. The concepts of business economics direct the actual conceptual logic of accounting theory, with the main intention being to provide efficient information to stakeholders. It has been observed that accounting theory has its roots in the neoclassical theory of the firm; and, by means of the contractual theory of the firm, where the monitoring of agents and of contracts is discussed, it goes beyond the limited vision of the assets control function (stewardship, expands the focus of providing information, in addition to the restricted function of accountability. And, finally, although not all elements of the new NIE are comprehended by accounting theory, the NIE withholds elements of instrumental importance for the consolidation of accounting theories concerning its institutionalization.

Predicting Attitudes toward Press- and Speech Freedom across the U.S.A.: A Test of Climato-Economic, Parasite Stress, and Life History Theories.

Science.gov (United States)

Zhang, Jinguang; Reid, Scott A; Xu, Jing

2015-01-01

National surveys reveal notable individual differences in U.S. citizens' attitudes toward freedom of expression, including freedom of the press and speech. Recent theoretical developments and empirical findings suggest that ecological factors impact censorship attitudes in addition to individual difference variables (e.g., education, conservatism), but no research has compared the explanatory power of prominent ecological theories. This study tested climato-economic, parasite stress, and life history theories using four measures of attitudes toward censoring the press and offensive speech obtained from two national surveys in the U.S.A. Neither climate demands nor its interaction with state wealth--two key variables for climato-economic theory--predicted any of the four outcome measures. Interstate parasite stress significantly predicted two, with a marginally significant effect on the third, but the effects became non-significant when the analyses were stratified for race (as a control for extrinsic risks). Teenage birth rates (a proxy of human life history) significantly predicted attitudes toward press freedom during wartime, but the effect was the opposite of what life history theory predicted. While none of the three theories provided a fully successful explanation of individual differences in attitudes toward freedom of expression, parasite stress and life history theories do show potentials. Future research should continue examining the impact of these ecological factors on human psychology by further specifying the mechanisms and developing better measures for those theories.

What is justice in education? Sketch of answer based on theories of justice and economics.

OpenAIRE

D. Waltenberg , Fábio

2004-01-01

D. Waltenberg, F. (2004). What is justice in education? Sketch of answer based on theories of justice and economics. Les Cahiers de Recherche du Girsef, 32.; What is justice in education? How can we evaluate whether given distributions of educational inputs or educational outcomes are just or not? How should a society distribute its educational resources? How can we evaluate the level of (un)fairness of a schooling system? In this paper, we try to provide a basic framework for thinking about ...

Essays in behavioral economics : Applied game theory and experiments

NARCIS (Netherlands)

Mermer, A.G.

2014-01-01

Behavioral Economics aims at understanding the decision of economic agents who are not necessarily monetary utility maximizers and accounts for the fact that agents may have other concerns next to economic gain. This thesis contributes to the literature by studying the behavior of economic agents

Economic analysis of replacement regeneration and coppice regeneration in eucalyptus stands under risk conditions

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Isabel Carolina de Lima Guedes

2011-09-01

Full Text Available Projects are by their very nature subject to conditions of uncertainty that obstruct the decision-making process. Uncertainties involving forestry projects are even greater, as they are combined with time of return on capital invested, being medium to long term. For successful forest planning, it is necessary to quantify uncertainties by converting them into risks. The decision on whether to adopt replacement regeneration or coppice regeneration in a forest stand is influenced by several factors, which include land availability for new forest crops, changes in project end use, oscillations in demand and technological advancement. This study analyzed the economic feasibility of replacement regeneration and coppice regeneration of eucalyptus stands, under deterministic and under risk conditions. Information was gathered about costs and revenues for charcoal production in order to structure the cash flow used in the economic analysis, adopting the Net Present Value method (VPL. Risk assessment was based on simulations running the Monte Carlo method. Results led to the following conclusions: replacement regeneration is economically viable, even if the future stand has the same productivity as the original stand; coppice regeneration is an economically viable option even if productivity is a mere 70% of the original stand (high-tree planted stand, the best risk-return ratio option is restocking the stand (replacement regeneration by one that is 20% more productive; the probabilistic analysis running the Monte Carlo method revealed that invariably there is economic viability for the various replacement and coppice regeneration options being studied, minimizing uncertainties and consequently increasing confidence in decision-making.

Understanding how biodiversity unfolds through time under neutral theory.

Science.gov (United States)

Missa, Olivier; Dytham, Calvin; Morlon, Hélène

2016-04-05

Theoretical predictions for biodiversity patterns are typically derived under the assumption that ecological systems have reached a dynamic equilibrium. Yet, there is increasing evidence that various aspects of ecological systems, including (but not limited to) species richness, are not at equilibrium. Here, we use simulations to analyse how biodiversity patterns unfold through time. In particular, we focus on the relative time required for various biodiversity patterns (macroecological or phylogenetic) to reach equilibrium. We simulate spatially explicit metacommunities according to the Neutral Theory of Biodiversity (NTB) under three modes of speciation, which differ in how evenly a parent species is split between its two daughter species. We find that species richness stabilizes first, followed by species area relationships (SAR) and finally species abundance distributions (SAD). The difference in timing of equilibrium between these different macroecological patterns is the largest when the split of individuals between sibling species at speciation is the most uneven. Phylogenetic patterns of biodiversity take even longer to stabilize (tens to hundreds of times longer than species richness) so that equilibrium predictions from neutral theory for these patterns are unlikely to be relevant. Our results suggest that it may be unwise to assume that biodiversity patterns are at equilibrium and provide a first step in studying how these patterns unfold through time. © 2016 The Author(s).

Techno-economic viability assessments of greener propulsion technology under potential environmental regulatory policy scenarios

International Nuclear Information System (INIS)

Nalianda, D.K.; Kyprianidis, K.G.; Sethi, V.; Singh, R.

2015-01-01

Highlights: • An advanced method is presented for techno-economic assessment under potential environmental regulatory policy scenarios. • The viability of the contra-rotating open rotor concept is investigated under various environmental policies. • CO_2 taxation is needed to drive the aerospace industry towards greener solutions. - Abstract: Sustainability of the aviation industry, as any other industry, depends on the elasticity of demand for the product and profitability through minimising operating costs. Of paramount importance is assessing and understanding the interdependency and effects of environmentally optimised solutions and emission mitigation policies. This paper describes the development and application of assessment methodologies to better understand the effects of environmental taxation/energy policies aimed at environmental pollution reduction and the future potential economic impact they may have on the adaptation of “greener” novel technologies. These studies are undertaken using a Techno-economic Environmental Risk Assessment approach. The methodology demonstrated allows the assessment of the economic viability of new technologies compared to conventional technologies, for various CO_2 emission taxation and fuel price scenarios. It considers relative increases in acquisition price and maintenance costs. A study undertaken as a ‘proof of concept’ compares a Counter Rotating Open Rotor aircraft with a conventional aircraft for short range operations. It indicates that at current fuel price and with no carbon taxation, a highly fuel efficient technology, such as the one considered, could be rendered economically unviable. The work goes on to demonstrate that in comparison to the conventional aircraft, any economic benefits that may be accrued from improvement in fuel consumption through such a technology, may well be negated through increases in acquisition price and maintenance costs. The work further demonstrates that if policy

THEORIES OF MONETARY POLICY – FROM THE MERCANTILIST PRAGMATISM TO THE MODERN MONETARY THEORIES

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Zina CIORAN

2014-06-01

Full Text Available The purpose of this article is to perform an incursion into the monetary theories, from the mercantilists to the modern theories. The monetary area is an important component of the economic system which has always been and still is tormented by anxiety and uncertainty. The currency can be considered a barometer that promptly and precisely registers a country’s economic oscillations and the fundamental problems that torment the human society nowadays is mainly expressed in monetary terms. Being one of the major tools the state uses to balance the economy, the monetary politics has permanently generated fervent controversies and discussions. Scientific research of the monetary phenomenon, facing the complexity of the currency problems with a diversity of currency types and with the complex currency role within the company, as well as the explosive evolution of the financial institutions, structures and monetary and financial products has always kept the monetary theory in the beginning of a new research program. The monetary theory center, around which the economists‘ thinking is founded, is formed of: emphasizing the money role in the economy, the money measurement, the money offer and request with their influence factors, the monetary balance theory, the monetary impulse transition modality as well as the monetary behavior on the part of the economic agents. It was established that each economical thinking movement marked the social, economical and political life for a certain amount of time, each school has criticized or supported their predecessors’ ideas contributing to the enrichment of the monetary theory and the economic development, implicitly.

Differential Forms: A New Tool in Economics

Science.gov (United States)

Mimkes, Jürgen

Econophysics is the transfer of methods from natural to socio-economic sciences. This concept has first been applied to finance1, but it is now also used in various applications of economics and social sciences [2,3]. The present paper focuses on problems in macro economics and growth. 1. Neoclassical theory [4, 5] neglects the “ex post” property of income and growth. Income Y(K, L) is assumed to be a function of capital and labor. But functions cannot model the “ex post” character of income. 2. Neoclassical theory is based on a Cobb Douglas function [6] with variable elasticity α, which may be fitted to economic data. But an undefined elasticity α leads to a descriptive rather than a predictive economic theory. The present paper introduces a new tool - differential forms and path dependent integrals - to macro economics. This is a solution to the problems above: 1. The integral of not exact differential forms is path dependent and can only be calculated “ex post” like income and economic growth. 2. Not exact differential forms can be made exact by an integrating factor, this leads to a new, well defined, unique production function F and a predictive economic theory.

Never the Twain Shall Meet? A Critical Perspective on Cultural Limits Between Internal Continental Dogmatism and Consequential US-Style Law and Economics Theory

NARCIS (Netherlands)

Purnhagen, K.

2014-01-01

Why could law and economics theory (hereinafter L&E) develop to become the most prominent theory in US legal scholarship, while still playing only a minor role in Europe? As this article is also meant as a gloss, as “a propagandist tracet”,1 I herein make use of my academic freedom to write

Leisure of the theory class. [Relationship of socio-economic status and espousals on energy or the economy

Energy Technology Data Exchange (ETDEWEB)

Laney, R.V.

1978-05-11

The energy debate is evolving into discussions of how to select options capable of meeting long-range social goals and how to apply the appropriate weight to the various perceptions that underlie individual opinions. The causal relationships linking personal status and attitudes is examined to see if there is a correlation between economic well-being and enthusiasm for a no-growth economy. The affluent U.S. college-educated, primarily concerned with self-actualization, show an inversion of Maslow's hierarchy of needs compared to people in developing countries. They are also in a position to express and promote theories for no-risk technology. The author suggests that these theorists be required to submit the same detailed support for their theories as is required for new energy facilities. The theory class is noted for acting upon faith rather than evidence; for ideas rather than workable plans.

Fiscal Deficit and Its Impact on Economic Growth: Evidence from Bangladesh

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Mohammed Ershad Hussain

2017-10-01

Full Text Available The findings from the VECM for BBS data reveal that there is a positive and significant relationship between FD and GDPGR, supporting the Keynesian theory, while findings from the VECM for World Bank data indicate that the impact of Fiscal Deficit (FD on GDPGR is mild but negative and significant at the 5% level. This contradicts the Keynesian theory, but is in accord with Neo-classical theory which asserts that fiscal deficits lead to a drop in the GDP. Nevertheless, the government must strive to keep deficit under control, not to hamper growth, and expenditure ought to be set so as to avoid massive deficits leading to debt financing and the crowding-out effect of private investment. If deficits become unsustainable, it can lead to higher interest payments, and the government may well default. Although in the economic literature, there is no definitive conclusion as to whether fiscal deficit helps or hinders economic growth for any country, many argue that fiscal deficit leads to economic growth of a country, which cannot be achieved only through domestic savings, not enough for investment. It can be assumed safely that to some extent fiscal deficit is good for economic growth if the borrowed money is spent on beneficial projects, provided the return from such investments exceeds the funding cost. For future research work, it will be interesting to examine the relationships between government spending, economic growth and long-term interest rate for Bangladesh.

On the economic analysis of problems in energy efficiency: Market barriers, market failures, and policy implications

Energy Technology Data Exchange (ETDEWEB)

Sanstad, A.H.; Koomey, J.G.; Levine, M.D.

1993-01-01

In his recent paper in The Energy Journal, Ronald Sutherland argues that several so-called market barriers'' to energy efficiency frequently cited in the literature are not market failures in the conventional sense and are thus irrelevant for energy policy. We argue that Sutherland has inadequately analyzed the idea of market barrier and misrepresented the policy implications of microeconomics. We find that economic theory, correctly interpreted, does not provide for the categorical dismissal of market barriers. We explore important methodological issues underlying the debate over market barriers, and discuss the importance of reconciling the findings of non-economic social sciences with the economic analysis of energy demand and consumer decision-making. We also scrutinize Sutherland's attempt to apply finance theory to rationalize high implicit discount rates observed in energy-related choices, and find this use of finance theory to be inappropriate.

Value and power in economics

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Josifidis Kosta

2012-01-01

Full Text Available In this article we rethink the field of value in economic theory. First, we prove that the transhistorical and nominalist approaches show different weaknesses and can not account for the constitutive dimensions of value. Within this context, we demonstrate why value emerged in the first place and what epistemological dimensions it provided and enabled for economic reflexivity. In addition, we demonstrate that it is impossible to understand inherent value as an immanent property of goods in economic transactions and we critique the approach that renders value to the theory of price. Economic relations reflect value-related aspects without which the relations could not be understood. We then analyze the interrelations between power and value, proving the constitutive dimension of power in understanding value, demonstrated in selected examples. We treat power as a constellation in which economic agents act on other subjects to provoke certain activity. Power may occur only where the behaviour of subjects is not entirely determined. Finally, one additional selected example shows the range of this theory of power in terms of positional goods.

Theory and methodology of social, political and economic processes risks determining in different countries of the world

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Yashina Nadezhda, I.

2015-06-01

Full Text Available The study deals with the problems of the theory and methodology of social, political and economic processes risks in different countries with relative indicators of the socio-economic development level, as well as the size and condition of the public debt. Developed by the authors the methodology of determining the risks of social, political and economic processes of public policy around the world revealed close relationship between socio-economic situation of the countries and their public debt. Within the framework of this methodology two groups of factors characterizing the socio-political and economic processes in the country are being developed. After that each exponent and indicator are being processed, using expert procedures. Maximum statutory values for tentatively referenced countries with effective and ineffective government policies are identified. Then standardization (specification and definition of integral (generalized indexes of socio-political and economic processes in the country are taking place. After that the ranking of countries by aggregated standardized ratio is arranged, taking into account the significance of the developed indicators. The final phase of implementation methodology is identifying risks of social, political and economic processes of public policy around the world. This is the ranking of countries by ratio of stability in public policy (stability of economic and socio-political processes in the country. As the result of implementation methodology the following output was received: what really makes a difference is not the amount of the country's debt, but how effectively it manages this debt, whether it has a goal to improve social and economic indicators. Practical testing methodology has proven that studied indicators fully characterize the development of the countries, their political, social and economic situation on the world stage.

Towards a critical theory of information

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Christian Fuchs

2009-11-01

The debate on redistribution and recognition between critical theorists Nancy Fraser and Axel Honneth gives the opportunity to renew the discussion of the relationship of base and superstructure in critical social theory. Critical information theory needs to be aware of economic, political, and cultural demands that it needs to make in struggles for ending domination and oppression, and of the unifying role that the economy and class play in these demands and struggles. Objective and subjective information concepts are based on the underlying worldview of reification. Reification endangers human existence. Information as process and relation enables political and ethical alternatives that have radical implications for society.

Budgetary and Economic Outcomes Under Paths for Federal Revenues and Noninterest Spending Specified by Chairman Price, March 2016

Science.gov (United States)

2016-03-01

Budgetary and Economic Outcomes Under Paths for Federal Revenues and Noninterest Spending Specified by Chairman Price , March 2016 March 2016CONGRESS... Price and His Staff 1 The Extended Baseline and Three Illustrative Paths 1 How CBO Analyzed the Effects of the Budgetary Paths 3 What Would Outcomes...Be Under Current Law? 4 What Paths for Federal Revenues and Noninterest Spending Did Chairman Price Specify? 6 What Would Budgetary and Economic

A risk-economic approach to nuclear power generation. Beyond the myth of absolute safety and unthinkable events

International Nuclear Information System (INIS)

Sakai, Yasuhiro

2012-01-01

This paper deals with a risk-economic approach to nuclear power generation, a very timely yet rather neglected area in the economics profession. The economic and psychological consequences of Japan's recent catastrophe have been so grave and wide-spread, thus calling for careful reexamination of the economics of risk and uncertainty. It is Daniel Bernoulli, a mathematical genius of the 18 th century, who first introduced the expected utility theory into decision making under risk. Although a great deal of applications has been done in many areas since then, it appears that the most recent nuclear meltdown of Japan is casting serious doubt upon the general validity of existing risk theories. It is high time for us to establish a new comprehensive approach by taking account of psychological, sociological, cultural, and historical factors. (author)

Economic growth and technological change : an evolutionary interpretation

NARCIS (Netherlands)

Verspagen, B.

2000-01-01

The aim of this paper is to apply insights from evolutionary economic theory to the question of what can explain recent trends in economic growth, with emphasis on the role of technological change. Obviously, a basic question that precedes this question is "what is evolutionary economic theory"? The

Introduction to game theory

Institute of Scientific and Technical Information of China (English)

无

2003-01-01

The basic ideas of game theory were originated from the problems of maximum and minimum given by J.Yon Neumann in 1928. Later, wars accelerated the study of game theory, there are many developments that contributed to the advancement of game theory, many problems of optimum appeared in economic development process. Scientists applied mathematic methods to studying game theory to make the theory more profound and perfect. The axiomatic structure of game theory was nearly complete in 1944. The path of the development of game theory started from finite to infinite, from two players to many players, from expressing gains with quantity to showing the ending of game theory with abstract result, and from certainty problems to random problems. Thus development of game theory is closely related to the economic development. In recent years, the research on the non-differentiability of Shapley value posed by Belgian Mertens is one of the advanced studies in game theory.

Predicting Attitudes toward Press- and Speech Freedom across the U.S.A.: A Test of Climato-Economic, Parasite Stress, and Life History Theories.

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Jinguang Zhang

Full Text Available National surveys reveal notable individual differences in U.S. citizens' attitudes toward freedom of expression, including freedom of the press and speech. Recent theoretical developments and empirical findings suggest that ecological factors impact censorship attitudes in addition to individual difference variables (e.g., education, conservatism, but no research has compared the explanatory power of prominent ecological theories. This study tested climato-economic, parasite stress, and life history theories using four measures of attitudes toward censoring the press and offensive speech obtained from two national surveys in the U.S.A. Neither climate demands nor its interaction with state wealth--two key variables for climato-economic theory--predicted any of the four outcome measures. Interstate parasite stress significantly predicted two, with a marginally significant effect on the third, but the effects became non-significant when the analyses were stratified for race (as a control for extrinsic risks. Teenage birth rates (a proxy of human life history significantly predicted attitudes toward press freedom during wartime, but the effect was the opposite of what life history theory predicted. While none of the three theories provided a fully successful explanation of individual differences in attitudes toward freedom of expression, parasite stress and life history theories do show potentials. Future research should continue examining the impact of these ecological factors on human psychology by further specifying the mechanisms and developing better measures for those theories.

THE CAUSES OF ECONOMIC CRISIS. A BEHAVIORAL FOUNDATION.

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Soim Horatiu Florin

2012-07-01

Full Text Available The cyclical path of economy is a common place in the economic theory. The economic crisis that started in 2007 was not only one of the most severe since the WWII but it came unexpectedly. The cause of the crises and of the surprise consists in the economic models and theories that were founded on the rationality and maximization behavior of the economic actor. People lack the rationality the mainstream economics assume. This is why both economists and simple people do not act as theory predicts and finally economy does not tend toward equilibrium but suffers recurrent crises. This crisis started as a financial one, because of the subprime loans made in USA, but have spread in production sector because of credit frozen, is now in transforming into a social crisis because of austerity measures taken by governments. The paper analyzes the theoretical foundation of economic theory and how the facts that characterize the recent economic evolution fit with the non mainstream theories. It presents the figures of the economic evolution in the last 3 years and explains them based of the agent’s behavior described by Herbert Simon and Daniel Kahneman. Their challenge of mainstream economics is based on an analyze of human behavior. Herbert Simon introduced the concept of bounded rationality as opposed to perfect rationality postulated by neoclassic economics and Daniel Kahneman realized experiments that proved that people cannot stick with the performances assumed by mainstream economics. Their conclusion permit to understand the approach of George Soros who says that people actions are bounded by reflexivity and as a consequences sometimes economy move not toward but far from equilibrium, creating bubbles that end in financial and economic crises. As Akerlof mention the cause of the crisis is the reliance of a false theory which said that we are safe. The conclusion is that we need new theories more close to the real life and an agent description

Vertical Integration of Hospitals and Physicians: Economic Theory and Empirical Evidence on Spending and Quality.

Science.gov (United States)

Post, Brady; Buchmueller, Tom; Ryan, Andrew M

2017-08-01

Hospital-physician vertical integration is on the rise. While increased efficiencies may be possible, emerging research raises concerns about anticompetitive behavior, spending increases, and uncertain effects on quality. In this review, we bring together several of the key theories of vertical integration that exist in the neoclassical and institutional economics literatures and apply these theories to the hospital-physician relationship. We also conduct a literature review of the effects of vertical integration on prices, spending, and quality in the growing body of evidence ( n = 15) to evaluate which of these frameworks have the strongest empirical support. We find some support for vertical foreclosure as a framework for explaining the observed results. We suggest a conceptual model and identify directions for future research. Based on our analysis, we conclude that vertical integration poses a threat to the affordability of health services and merits special attention from policymakers and antitrust authorities.

The Contribution of the Human Development Index Literacy Theory to the Debate on Literacy and Development

Science.gov (United States)

Biao, Idowu; Mogotsi, Kebadire; Maruatona, Tonic; Raditloaneng, Wapula; Tladi, Flora; Chawawa, Morgan; Kheru, Obakeng

2014-01-01

The Human Development Index Literacy (HDIL) theory was developed in 2011 to eliminate or minimise the negative impact of issues underlying the failure of previous literacy programmes in promoting socio-economic development. This theory was tested for the first time between July 2013 and February 2014 in two rural communities of Botswana. A…

The Economics of Online Dating: A Course in Economic Modeling

Science.gov (United States)

Monaco, Andrew J.

2018-01-01

The author discusses the development of a unique course, The Economics of Online Dating. The course is an upper-level undergraduate course that combines intensive discussion, peer review, and economic theory to teach modeling skills to undergraduates. The course uses the framework of "online dating," interpreted broadly, as a point of…

Do politicians take risks like the rest of us? An experimental test of prospect theory under MPs

NARCIS (Netherlands)

Linde, J.; Vis, B.

Political psychologists have been quick to use prospect theory in their work, realizing its potential for explaining decisions under risk. Applying prospect theory to political decision-making is not without problems, though, and here we address two of these: (1) Does prospect theory actually apply

Do Politicians Take Risks Like the Rest of Us? An Experimental Test of Prospect Theory Under MPs

NARCIS (Netherlands)

Linde, Jona; Vis, Barbara

Political psychologists have been quick to use prospect theory in their work, realizing its potential for explaining decisions under risk. Applying prospect theory to political decision-making is not without problems, though, and here we address two of these: (1) Does prospect theory actually apply

Speed maintenance under cognitive load - Implications for theories of driver behaviour.

Science.gov (United States)

Lewis-Evans, Ben; de Waard, Dick; Brookhuis, Karel A

2011-07-01

No theory of driver behaviour has yet managed to achieve widespread acceptance and use in the field of Traffic Psychology, partly due to the difficulty in testing many of the theories. However, one class of theories, the motivational theories, can be usefully split into two groups and the differences between them can then be examined. One group posits the constant monitoring and targeting of a certain subjective variable, often risk, as the controlling factor in driving. The other group however states that subjective variables such as risk are only relevant once a certain threshold has been passed. In this study we aimed to examine this difference by manipulating both speed of travel and the amount of cognitive load participants were under. Participants were asked to initially drive at their preferred speed for 1min in a driving simulator. Participant's speed was then automatically increased or decreased by 10, 20 30km/h or left unchanged. Participants were then required to maintain the new speed for 1min. After this 1min the speed was again automatically changed and had to be maintained for one more minute, but this time participants also carried out a secondary mental arithmetic task. Finally participants were asked to again drive for another 1min at their preferred speed. This procedure was repeated seven times, once for each speed manipulation; -30, -20, -10, +0, +10, +20 and +30km/h. After each 1min interval verbal ratings of task difficulty, effort, feeling of risk and the typicality of the speed were collected. The results show a threshold effect in ratings of task difficulty, effort and feeling of risk, with no significant difference given between the ratings during the baseline period and the experimentally decreased speed periods until after participant's preferred speed of travel had been exceeded. Furthermore, even when under cognitive load the threshold relationship was still apparent, if diminished. Finally it appears that when under cognitive load

The role (or not) of economic evaluation at the micro level: can Bourdieu's theory provide a way forward for clinical decision-making?

Science.gov (United States)

Lessard, Chantale; Contandriopoulos, André-Pierre; Beaulieu, Marie-Dominique

2010-06-01

Despite increasing interest in health economic evaluation, investigations have shown limited use by micro (clinical) level decision-makers. A considerable amount of health decisions take place daily at the point of the clinical encounter; especially in primary care. Since every decision has an opportunity cost, ignoring economic information in family physicians' (FPs) decision-making may have a broad impact on health care efficiency. Knowledge translation of economic evaluation is often based on taken-for-granted assumptions about actors' interests and interactions, neglecting much of the complexity of social reality. Health economics literature frequently assumes a rational and linear decision-making process. Clinical decision-making is in fact a complex social, dynamic, multifaceted process, involving relationships and contextual embeddedness. FPs are embedded in complex social networks that have a significant impact on skills, attitudes, knowledge, practices, and on the information being used. Because of their socially constructed nature, understanding preferences, professional culture, practices, and knowledge translation requires serious attention to social reality. There has been little exploration by health economists of whether the problem may be more fundamental and reside in a misunderstanding of the process of decision-making. There is a need to enhance our understanding of the role of economic evaluation in decision-making from a disciplinary perspective different than health economics. This paper argues for a different conceptualization of the role of economic evaluation in FPs' decision-making, and proposes Bourdieu's sociological theory as a research framework. Bourdieu's theory of practice illustrates how the context-sensitive nature of practice must be understood as a socially constituted practical knowledge. The proposed approach could substantially contribute to a more complex understanding of the role of economic evaluation in FPs' decision

Ugly Facts and Fancy Theories: Children and Youth during the Transition. Innocenti Occasional Papers Economic Policy Series, Number 47. Special Subseries: Economies in Transition.

Science.gov (United States)

Cornia, Giovanni Andrea

This is a report sponsored by UNICEF on the effects of economic and political transition in Europe, particularly Eastern Europe, on young children and adolescents. The economic theories and changes in labor and markets which have characterized European transitions in the past few years have paid little attention to issues of poverty and child…

Homo Oeconomicus and Behavioral Economics

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Justyna Brzezicka

2014-12-01

Full Text Available Recent years have witnessed a growing interest in behavioral trends in both economic theory and practical applications. As a science with vast potential for explaining complex market behaviors, behavioral economics is drifting away from the classical model of homo oeconomicus deployed by mainstream economics. This paper discusses the significance and role of the homo oeconomicus model in light of behavioral economics. It analyzes the direction of changes affecting homo oeconomicus, examines the definition of anomalies within the context of behavioral economics and discusses the anomalous status of homo oeconomicus. The paper proposes a hypothesis that the attitude characterizing homo oeconomicus is unique and incidental. The presented interdisciplinary analysis relies on economics, behavioral economics, economic psychology, behavioral finance and the methodology of science to discuss the homo oeconomicus model. The paper reviews change trends in economics, which are largely propelled by advancements in behavioral economics. The key methodological tools deployed in this paper are theoretical analysis and a compilation of extensive research findings. The results were used to formulate new theories advocating the development of a modern approach to the homo oeconomicus model, recognizing its significance and the growing importance of behavioral economics.

Spreading of intolerance under economic stress: Results from a reputation-based model

Science.gov (United States)

Martinez-Vaquero, Luis A.; Cuesta, José A.

2014-08-01

When a population is engaged in successive prisoner's dilemmas, indirect reciprocity through reputation fosters cooperation through the emergence of moral and action rules. A simplified model has recently been proposed where individuals choose between helping others or not and are judged good or bad for it by the rest of the population. The reputation so acquired will condition future actions. In this model, eight strategies (referred to as "leading eight") enforce a high level of cooperation, generate high payoffs, and are therefore resistant to invasions by other strategies. Here we show that, by assigning each individual one of two labels that peers can distinguish (e.g., political ideas, religion, and skin color) and allowing moral and action rules to depend on the label, intolerant behaviors can emerge within minorities under sufficient economic stress. We analyze the sets of conditions where this can happen and also discuss the circumstances under which tolerance can be restored. Our results agree with empirical observations that correlate intolerance and economic stress and predict a correlation between the degree of tolerance of a population and its composition and ethical stance.

Why innovation theories make no sense

OpenAIRE

Moldaschl, Manfred

2010-01-01

In this paper I argue that it makes no sense to have "innovation theories", or the use of the concept in describing the potential of social and economic theories to explain the phenomenon of non-equilibrium. If we wish to explain dynamic, change, evolution, revolution, etc. in socio-economic systems, then theories that are genuinely capable of doing so are indispensable. We don't need static theories of society, economy, organization, the firm, etc. which need an "additional" theory of incong...

Complexity theory and financial regulation

NARCIS (Netherlands)

Battiston, Stefano; Farmer, J.D.; Flache, Andreas; Garlaschelli, Diego; Haldane, Andrew G.; Heesterbeek, Hans; Hommes, Cars; Jaeger, Carlo; May, Robert; Scheffer, Marten

2016-01-01

Traditional economic theory could not explain, much less predict, the near collapse of the financial system and its long-lasting effects on the global economy. Since the 2008 crisis, there has been increasing interest in using ideas from complexity theory to make sense of economic and financial

Economic Rents and Legitimacy: Incorporating Elements of Organizational Analysis Institutional Theory to the Field of Business Strategy

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Marco Aurélio Lima de Queiroz

2007-01-01

Full Text Available Are sources of economic rent, as defined by the prevalent business strategy paradigm, sufficient to attain and maintain superior returns? The perspective developed within the conceptual framework of the Institutional Theory may offer managers a contribution towards understanding the strategy process and its potentialities,particularly by stressing the leading role played by legitimacy, the influence of many institutional spheres, the isomorphic pressures, ceremonial behavior and decoupling, among other elements, that mainstream business strategy fails to address directly, but which may have a significant effect on firm performance. We advance thatthese elements must be accounted for in the pursuit and acquisition of economic rents, even if the ability to articulate them purposefully is constrained by rationality, agency conditions and the manager's social embeddedness.

Environmental and economic risks assessment under climate changes for three land uses scenarios analysis across Teshio watershed, northernmost of Japan.

Science.gov (United States)

Fan, Min; Shibata, Hideaki; Chen, Li

2017-12-01

Land use and climate changes affect on the economy and environment with different patterns and magnitudes in the watershed. This study used risk analysis model stochastic efficiency with respect to a function (SERF) to evaluate economic and environmental risks caused by four climate change scenarios (baseline, small-, mid- and large changes) and three land uses (paddy dominated, paddy-farmland mixture and farmland dominated for agriculture) in Teshio watershed in northern Hokkaido, Japan. Under the baseline climate conditions, the lower ranking of economic income of crop yield and higher ranking of pollutant load from agricultural land were both predicted in paddy dominated for agriculture, suggesting that the paddy dominated system caused higher risks of economic and environmental variables compared to other two land uses. Increase of temperature and precipitation increased crop yields under all three climate changes which resulted in increase of the ranking of economic income, indicating that those climate changes could reduce economic risk. The increased temperature and precipitation also accelerated mineralization of organic nutrient and nutrient leaching to river course of Teshio which resulted in increase of the ranking of pollutant load, suggesting that those climate changes could lead to more environmental risk. The rankings of economic income in mid- and large changes of climate were lower than that in small change of climate under paddy-farmland mixture and farmland dominated systems due to decrease of crop yield, suggesting that climate change led to more economic risk. In summary, the results suggested that increase in temperature and precipitation caused higher risks of both economic and environmental perspectives, and the impacts was higher than those of land use changes in the studied watershed. Those findings would help producers and watershed managers to measure the tradeoffs between environmental protection and agricultural economic development

An economic and neuroscientific comparison of strategic decision making

NARCIS (Netherlands)

Michl, T.; Taing, S.; Day, M.; Stanton, A.; Welpe, I.M.

2010-01-01

Economic decision- making is traditionally based on the assumptions of the predominant existence of Homo economicus (Latin: economic human being). The framework of this theory is known as the Rational Choice Theory (RC Theory). It includes assumptions such as utility maximization, opportunism,

Estimating total economic merit for the Portuguese Holstein cattle population under new economic conditions

Directory of Open Access Journals (Sweden)

Joana B.M. Almeida

2013-12-01

Full Text Available The objective of this study was to develop a total economic merit index that identifies more profitable animals using Portugal as a case study to illustrate the recent economic changes in milk production. Economic values were estimated following future global prices and EU policy, and taking into consideration the priorities of the Portuguese dairy sector. Economic values were derived using an objective system analysis with a positive approach, that involved the comparison of several alternatives, using real technical and economic data from national dairy farms. The estimated relative economic values revealed a high importance of production traits, low for morphological traits and a value of zero for somatic cell score. According to several future market expectations, three scenarios for milk production were defined: a realistic, a pessimistic and an optimistic setting, each with projected future economic values. Responses to selection and efficiency of selection of the indices were compared to a fourth scenario that represents the current selection situation in Portugal, based on individual estimated breeding values for milk yield. Although profit resulting from sale of milk per average lactation in the optimistic scenario was higher than in the realistic scenario, the volatility of future economic conditions and uncertainty about the future milk pricing system should be considered. Due to this market instability, genetic improvement programs require new definitions of profit functions for the near future. Effective genetic progress direction must be verified so that total economic merit formulae can be adjusted and selection criteria redirected to the newly defined target goals.

The Trends in International Migration of Human Resources under Conditions of Geo-Economic Transformations

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Shymanska Kateryna V.

2017-06-01

Full Text Available The aim of the article is to reveal the influence of geo-economic transformations on the trends in international migration of human resources as an element of the resource potential of countries and regions. The current state of geo-economic transformations is analyzed, and their influence on the processes of international migration of human resources is revealed. The relevance of analyzing international movement of human resources, not labor ones, in building the geo-economic strategy of a country or a regional grouping is justified. The connection between the international migration of human resources and the trends in development of individual countries and regions (oil exporting countries, newly industrialized countries and least developed agrarian countries is determined, the general patterns of migration flows in these countries are described. Furthermore, the topical issues in studying international migration of human resources in the context of the directions of geo-economics identified by scientists are formulated. It is determined that the regional migration policy should contribute to maximizing the benefits of migration of human resources for the development of the region and the use of immigrants in the countries of the region as an economic resource that becomes strategically important under conditions of geo-economic transformations.

Teaching Economics. Second Edition.

Science.gov (United States)

Lee, Norman, Ed.

The purpose of this book is to review the place of economics education in the curriculum and to investigate the significance of developments in educational theory and practice for the teaching of economics. It consists of a collection of studies on different aspects of economics education, prepared by 24 contributors from British and North…

Game theory in philosophy

NARCIS (Netherlands)

de Bruin, B.P.

2005-01-01

Game theory is the mathematical study of strategy and conflict. It has wide applications in economics, political science, sociology, and, to some extent, in philosophy. Where rational choice theory or decision theory is concerned with individual agents facing games against nature, game theory deals

Intimate partner violence and women's economic and non-economic activities in Minya, Egypt.

Science.gov (United States)

Yount, Kathryn M; Zureick-Brown, Sarah; salem, Rania

2014-06-01

Intimate partner violence (IPV) against women is widespread, but its implications for their economic and non-economic activities are understudied. Leveraging new data from 564 ever-married women aged 22–65 in rural Minya, Egypt, we estimated logistic regressions and zero-inflated negative binomial regressions to test spillover, compensation, and patriarchal bargaining theories about the influences of women's exposure to IPV on their engagement in and time spent on market, subsistence, domestic, and care work. Supporting compensation theory, exposures to lifetime, recent, and chronic physical or sexual IPV were associated with higher adjusted odds of performing market work in the prior month, and exposures to recent and chronic IPV were associated with higher adjusted odds of performing subsistence work in this period. Supporting compensation and patriarchal bargaining theories, exposures to recent and chronic IPV were associated with more time spent on domestic work in the prior day. Supporting spillover and patriarchal bargaining theories, exposures to lifetime IPV of all forms were associated with lower adjusted odds of performing mostly nonspousal care work in the prior day, and this association was partially mediated by women's generalized anxiety. Women in rural Minya who are exposed to IPV may escalate their housework to fulfill local norms of feminine domesticity while substituting economic activities for nonspousal care work to enhance their economic independence from violent partners.

Managing Entrepreneurial Risks under Conditions of Instability of Economic Environment

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Miroshnichenko Yurii V.

2013-12-01

Full Text Available The article analyses the state of an organisation under modern conditions of establishment of new competitive relations between subjects of economic activity and transition to the model of market economy, justifies urgency of studies devoted to methods of entrepreneurial risk management. The article analyses factors that influence the risk level and offers own definition of this category. The article sets the task of improvement of the systemised classification of entrepreneurial risk management methods. In the result of the conducted analysis, the authors offered an improved systemised classification of risk management methods and justifies efficiency of its use.

Are there common mathematical structures in economics and physics?

Science.gov (United States)

Mimkes, Jürgen

2016-12-01

Economics is a field that looks into the future. We may know a few things ahead (ex ante), but most things we only know, afterwards (ex post). How can we work in a field, where much of the important information is missing? Mathematics gives two answers: 1. Probability theory leads to microeconomics: the Lagrange function optimizes utility under constraints of economic terms (like costs). The utility function is the entropy, the logarithm of probability. The optimal result is given by a probability distribution and an integrating factor. 2. Calculus leads to macroeconomics: In economics we have two production factors, capital and labour. This requires two dimensional calculus with exact and not-exact differentials, which represent the "ex ante" and "ex post" terms of economics. An integrating factor turns a not-exact term (like income) into an exact term (entropy, the natural production function). The integrating factor is the same as in microeconomics and turns the not-exact field of economics into an exact physical science.

Electricity markets theories and applications

CERN Document Server

Lin, Jeremy

2017-01-01

Electricity Markets: Theories and Applications offers students and practitioners a clear understanding of the fundamental concepts of the economic theories, particularly microeconomic theories, as well as information on some advanced optimization methods of electricity markets. The authors--noted experts in the field--cover the basic drivers for the transformation of the electricity industry in both the United States and around the world and discuss the fundamentals of power system operation, electricity market design and structures, and electricity market operations. The text also explores advanced topics of power system operations and electricity market design and structure including zonal versus nodal pricing, market performance and market power issues, transmission pricing, and the emerging problems electricity markets face in smart grid and micro-grid environments. The authors also examine system planning under the context of electricity market regime. They explain the new ways to solve problems with t...

Entrepreneurship and the Economics of the Firm

DEFF Research Database (Denmark)

Foss, Nicolai Juul

The study of entrepreneurship and the study of economic organizing lack contact. In fact, the modern theory of the firm virtually ignores entrepreneurship, while the literature on entrepreneurship often sees little value in the economic theory of the firm. In contrast, we argue in this chapter...... that entrepreneurship theory and the theory of the firm can be usefully integrated, and that doing so would improve both bodies of theory. Adding the entrepreneur to the theory of the firm provides a dynamic view that the overly static analysis of firm organizing cannot support. Moreover, adding the firm to the study...... of the entrepreneur provides important clues to how we can understand entrepreneurship....

Algunas aplicaciones de la Teoría de Lie a la Economía y las Finanzas = Some Applications of Lie Theory to Economics and Finance

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Hernández Fernández, Isabel

2008-01-01

Full Text Available En este artículo, los autores pretenden mostrar y explicar cómo la Teoría de Lie se puede aplicar a la resolución de algunos problemas relativos a la Economía y a las Finanzas. Concretamente, se realiza un análisis de dos de esos problemas y se discuten tanto sus aspectos matemáticos como el acercamiento hecho desde la Teoría de Lie para su resolución. Igualmente, se indican los avances más recientes existentes en esta línea de investigación, mencionando también algunos problemas abiertos que pueden ser tratados en futuros trabajos. = This paper shows and explains two problems in Economics and Finance, both dealt with a Lie Theory approach. So, mathematical aspects for these approaches are put forward and discussed in several economic problems which have been previously considered in the literature. Besides, some advances on this topic are also shown, mentioning some open problems for future research.

To the Question about the Quality of Economic Education

Science.gov (United States)

Dyshaeva, Lyudmila

2015-01-01

The article discusses the shortcomings of the methodology of neoclassical theory as a basic theory determining the content of contemporary economic theory course at Russian educational institutions namely unrealistic conditions of perfect competition, rationality of economic behavior of business entities, completeness and authenticity of…

76 FR 31425 - HIPAA Privacy Rule Accounting of Disclosures Under the Health Information Technology for Economic...

Science.gov (United States)

2011-05-31

... 164 HIPAA Privacy Rule Accounting of Disclosures Under the Health Information Technology for Economic... Secretary 45 CFR Part 164 RIN 0991-AB62 HIPAA Privacy Rule Accounting of Disclosures Under the Health... accounting of disclosures of protected health information. The purpose of these modifications is, in part, to...

Why do we price electricity the way we do? Canadian policy in the light of political-economic theories of governmental behaviour

International Nuclear Information System (INIS)

Cairns, R.D.; Heyes, A.G.

1993-01-01

In the past few decades, Canadian crown electrical utilities have exhausted available economies of scale. At marginal cost prices, the utilities could recover costs and even a rent. Yet the available rents have not been collected through economically efficient pricing, but distributed to consumers through low prices. An economically preferred pricing method, known as second-best pricing, is formulated in which there are rents to the hydro resource but these rents are distributed to consumers through the pricing of the product rather than collected by the crown owner of the resource. The model assumes three types of demand: households with different annual incomes which are dependent on the profits of the other two types; small industrial or commercial firms; and large industrial firms. Revenues from the different demand classes are assumed to take the form of two-part tariffs. The pricing policies of crown utilities are discussed, with an emphasis on Hydro-Quebec, and the results of the model are used as informal tests of various theories of public decisionmaking. Most theories provide a partial explanation, but no theory provides a complete explanation of pricing behavior. 24 refs

REQUIREMENTS FOR A GENERAL INTERPRETATION THEORY

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Anda Laura Lungu Petruescu

2013-06-01

Full Text Available Time has proved that Economic Analysis is not enough as to ensure all the needs of the economic field. The present study wishes to propose a new approach method of the economic phenomena and processes based on the researches made outside the economic space- a new general interpretation theory- which is centered on the human being as the basic actor of economy. A general interpretation theory must assure the interpretation of the causalities among the economic phenomena and processes- causal interpretation; the interpretation of the correlations and dependencies among indicators- normative interpretation; the interpretation of social and communicational processes in economic organizations- social and communicational interpretation; the interpretation of the community status of companies- transsocial interpretation; the interpretation of the purposes of human activities and their coherency – teleological interpretation; the interpretation of equilibrium/ disequilibrium from inside the economic systems- optimality interpretation. In order to respond to such demands, rigor, pragmatism, praxiology and contextual connectors are required. In order to progress, the economic science must improve its language, both its syntax and its semantics. The clarity of exposure requires a language clarity and the scientific theory progress asks for the need of hypotheses in the building of the theories. The switch from the common language to the symbolic one means the switch from ambiguity to rigor and rationality, that is order in thinking. But order implies structure, which implies formalization. Our paper should be a plea for these requirements, requirements which should be fulfilled by a modern interpretation theory.

Air Force Pilot Retention: An Economic Analysis

Science.gov (United States)

1993-01-01

Force impacts retention. Within the field of labor economics , an alternative labor market theory has developed which contrasts with typical competitive...this section. 60 NOTES ON CHAPTER III 1 Sherwin Rosen. "The Theory of Equalizing Differences," _Handboof•f Labor Economics , Volume 1, (New York

A tri-reference point theory of decision making under risk.

Science.gov (United States)

Wang, X T; Johnson, Joseph G

2012-11-01

The tri-reference point (TRP) theory takes into account minimum requirements (MR), the status quo (SQ), and goals (G) in decision making under risk. The 3 reference points demarcate risky outcomes and risk perception into 4 functional regions: success (expected value of x ≥ G), gain (SQ G > SQ. We present TRP assumptions and value functions and a mathematical formalization of the theory. We conducted empirical tests of crucial TRP predictions using both explicit and implicit reference points. We show that decision makers consider both G and MR and give greater weight to MR than G, indicating failure aversion (i.e., the disutility of a failure is greater than the utility of a success in the same task) in addition to loss aversion (i.e., the disutility of a loss is greater than the utility of the same amount of gain). Captured by a double-S shaped value function with 3 inflection points, risk preferences switched between risk seeking and risk aversion when the distribution of a gamble straddled a different reference point. The existence of MR (not G) significantly shifted choice preference toward risk aversion even when the outcome distribution of a gamble was well above the MR. Single reference point based models such as prospect theory cannot consistently account for these findings. The TRP theory provides simple guidelines for evaluating risky choices for individuals and organizational management. (PsycINFO Database Record (c) 2012 APA, all rights reserved).

Evolutionary Systems Theory, Universities, and Endogenous Regional Economic Development

Science.gov (United States)

Bowen, William M.

2007-01-01

Universities today are increasingly being viewed in terms of serving the purpose of economic development. This paper postulates that their chief purpose is to advance knowledge and that in doing so they effectuate regional economic growth and development through processes specified in the endogenous economic growth model. To achieve this purpose…

Applying Bayesian decision theory to assess reprocessing economic and social cost-benefits

International Nuclear Information System (INIS)

Heising, C.D.

1978-01-01

Bayesian decision theory, combined with conventional systems analysis techniques into the discipline called decision analysis, has been applied in this work to assess economic and social cost-benefits associated with reprocessing nuclear fuel. Particular attention in this paper is given to the models which have been developed to place numerical estimates in dollar terms on the three categories of social risks that have been identified with reprocessing. These categories include: (1) health, environment, and safety, (2) diversion of fissile material, including sabotage, terrorist acts, and subnational diversion, and (3) nuclear proliferation, defined to be a diversion at the national level to obtain weapons capability. The emphasis is placed on the third category, as proliferation risk has not been treated elsewhere in a quantitative fashion; most arguments have in the main been qualitative conjectures put forth by political scientists

Predicting Attitudes toward Press- and Speech Freedom across the U.S.A.: A Test of Climato-Economic, Parasite Stress, and Life History Theories

Science.gov (United States)

Zhang, Jinguang; Reid, Scott A.; Xu, Jing

2015-01-01

National surveys reveal notable individual differences in U.S. citizens’ attitudes toward freedom of expression, including freedom of the press and speech. Recent theoretical developments and empirical findings suggest that ecological factors impact censorship attitudes in addition to individual difference variables (e.g., education, conservatism), but no research has compared the explanatory power of prominent ecological theories. This study tested climato-economic, parasite stress, and life history theories using four measures of attitudes toward censoring the press and offensive speech obtained from two national surveys in the U.S.A. Neither climate demands nor its interaction with state wealth—two key variables for climato-economic theory—predicted any of the four outcome measures. Interstate parasite stress significantly predicted two, with a marginally significant effect on the third, but the effects became non-significant when the analyses were stratified for race (as a control for extrinsic risks). Teenage birth rates (a proxy of human life history) significantly predicted attitudes toward press freedom during wartime, but the effect was the opposite of what life history theory predicted. While none of the three theories provided a fully successful explanation of individual differences in attitudes toward freedom of expression, parasite stress and life history theories do show potentials. Future research should continue examining the impact of these ecological factors on human psychology by further specifying the mechanisms and developing better measures for those theories. PMID:26030736

Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resources

International Nuclear Information System (INIS)

Silva, Susana; Soares, Isabel; Afonso, Oscar

2013-01-01

We build a general equilibrium model with renewable (non-polluting) and non-renewable (polluting) resources to analyze the interaction and compatibility between economic growth and a cleaner environment. The study is in two phases: (i) resource extraction/production costs are constant; (ii) resource producers invest in knowledge to reduce extraction/production costs, endogenizing technical change. With constant costs, there is a permanent trade-off between economic growth and a cleaner environment. With endogenous technical change, it is possible to harmonize more output and less emissions by replacing non-renewable resources for renewable ones. We also conduct a sensitivity analysis to explore three specific policy actions. With constant costs, the best policy action is the imposition of a higher renewable resources standard, while with endogenous technical change, under certain conditions, all policy interventions may benefit both the economy and the environment. - Highlights: ► Our general equilibrium model includes renewable and non-renewable resources. ► Under constant resource production costs emissions grow at the same rate as output. ► Resource producers can invest in knowledge to reduce production costs. ► Under decreasing costs, lower emissions are compatible with stable output growth. ► Empirical results differ under constant costs and under endogenous technical change

Austrian Economics and the Transaction Cost Approach to the Firm

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Nicolai J. Foss

2009-10-01

Full Text Available As the transaction cost theory of the firm was taking shape in the 1970s, another important movement in economics was emerging: a revival of the ‘Austrian’ tradition in economic theory associated with such economists as Ludwig von Mises and F. A. Hayek (1973; Dolan, 1976; Spadaro, 1978. As Oliver Williamson has pointed out, Austrian economics is among the diverse sources for transaction cost economics. In particular, Williamson frequently cites Hayek (e.g., Williamson, 1985, p. 8; 1991, p. 162, particularly Hayek’s emphasis on adaptation as a key problem of economic organisation (Hayek, 1945. Following Williamson’s lead, a reference to Hayek’s ‘The Use of Knowledge in Society’ (Hayek, 1945 has become almost mandatory in discussions of economic organisation (e.g., Ricketts, 1987, p. 59; Milgrom and Roberts, 1992, p. 56; Douma and Schreuder 1991, p. 9. However, there are many other potential links between Austrian and transaction cost economics that have not been explored closely and exploited.This article argues that characteristically Austrian ideas about property, entrepreneurship, economic calculation, tacit knowledge, and the temporal structure of capital have important implications for theories of economic organisation, transaction cost economics in particular. Austrian economists have not, however, devoted substantial attention to the theory of the firm, preferring to focus on business-cycle theory, welfare economics, political economy, comparative economic systems, and other areas. Until recently the theory of the firm was an almost completely neglected area in Austrian economics, but over the last decade, a small Austrian literature on the firm has emerged. While these works cover a wide variety of theoretical and applied topics, their authors share the view that Austrian insights have something to offer students of firm organisation.

About some problems of the modern economic scienc

OpenAIRE

Zolotov, A.

2014-01-01

It is given a critical analysis of definitions of such economic categories as economics, economy, relations of production and criticism of the views of some modern economists on the interrelation between science and theory, theory and political economy.

Analysis of North Korea's Nuclear Tests under Prospect Theory

Energy Technology Data Exchange (ETDEWEB)

Lee, Han Myung; Ryu, Jae Soo; Lee, Kwang Seok; Lee, Dong Hoon; Jun, Eunju; Kim, Mi Jin [Korea Atomic Energy Research Institute, Daejeon (Korea, Republic of)

2013-10-15

North Korea has chosen nuclear weapons as the means to protect its sovereignty. Despite international society's endeavors and sanctions to encourage North Korea to abandon its nuclear ambition, North Korea has repeatedly conducted nuclear testing. In this paper, the reason for North Korea's addiction to a nuclear arsenal is addressed within the framework of cognitive psychology. The prospect theory addresses an epistemological approach usually overlooked in rational choice theories. It provides useful implications why North Korea, being under a crisis situation has thrown out a stable choice but taken on a risky one such as nuclear testing. Under the viewpoint of prospect theory, nuclear tests by North Korea can be understood as follows: The first nuclear test in 2006 is seen as a trial to escape from loss areas such as financial sanctions and regime threats; the second test in 2009 was interpreted as a consequence of the strategy to recover losses by making a direct confrontation against the United States; and the third test in 2013 was understood as an attempt to strengthen internal solidarity after Kim Jong-eun inherited the dynasty, as well as to enhance bargaining power against the United States. Thus, it can be summarized that Pyongyang repeated its nuclear tests to escape from a negative domain and to settle into a positive one. In addition, in the future, North Korea may not be willing to readily give up its nuclear capabilities to ensure the survival of its own regime.

Regions’ Economic Autonomy in the New Reality

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Vladimir Stepanovich Bochko

2016-06-01

Full Text Available The paper discloses the understanding of new reality (normality for Russia that consists in the strengthening of the role of a man-personality and in the expansion of the economic autonomy of the territories in their interaction with the federal center. The rationale is based on a hypothesis according to which in the conditions of new reality, the increase of the well-being of the population and the overcoming of economic inequality between the territories are provided by the expansion of their economic independence as it leads to the increase of their intellectual, engineering and manufacturing potential. In the research, the author used the basic concepts of the classical economic theory, the theory of behavioural economics, interdisciplinary approach and statistical grouping method. The dynamics of the economic independence of the territories, which is manifested in the decrease in a number of donor regions and the socio-economic dividing of the territories, is shown. The assumption is proved that the consequences of the territorial stratification are the restraining of the growth of their socio-economic development and possibility probable emergence of «regional peripheral economy» with the property of the dependence of the periphery on the center, the decrease in a local initiative, the inhibition of technological development. The need to use the social psychology of the population, the psychological sets of economic development, «the second invisible hand of the market» and soft power to overcome the «regional peripheral economy» is revealed. The result of the research is the proof that the expansion of the economic independence of the territories is not only the increase of the self-isolation of regions and municipalities, but also the need to save the considerable part of the income from the production of goods and services created by the local population under control of the regional and municipal authorities and direct it to the

Progress, influence and perspectives of emergy theories in China, in support of environmentally sound economic development and equitable trade

International Nuclear Information System (INIS)

Dong, Xiaobin; Ulgiati, Sergio; Yan, Maochao; Gao, Wangsheng

2008-01-01

Emergy Accounting and Synthesis, developed by Howard Odum in the 1980s, accounts for both the work of nature and that of humans as part of it in generating products and services. Since the 1990s, when Odum's system theories and emergy approach were introduced to China, a great attention was paid to them, since they appeared to Chinese scholars very important, comprehensive, and rich with application opportunities to China's economic development and environmental management. Until now more than 150 papers related to emergy theories were published in Chinese scientific journals, more than 20 dissertations presented in all Chinese Universities, and a large number of emergy-based papers were authored by Chinese scholars in international journals. Also, several reports dealing with emergy evaluation of different provinces of China were presented to local governments for decision-making. Emergy theories were applied to valuation of ecosystems and eco-industrial parks, as well as to studies of benefits/cost analysis and feasibility of ecological engineering. Meanwhile, a series of monographs and translated books related to emergy theories were published in China, some of which are used as text books in Chinese universities and institutes. Compared with the great potential of emergy application, there are many new fields that should be addressed in China, including: assessing the environmental impact of processes based on matching of high-quality and low-quality resources, establishing new frameworks and systems for environmental accounting, evaluating natural capital and services and applying research results to the process of decision-making, and finally studying the patterns and the available development options of China regional eco-economic systems. (author)

Spreading the Word: Transaction Cost Economics in the Conversation of Economics: Spreading the Word

OpenAIRE

Pessali, Huascar; Fernández, Ramón

2012-01-01

Transaction cost economics is a key topic in many conversations in business and economics related disciplines, much as a result of Oliver Williamson's intellectual crusade. By claiming a "distinct worldview," he develops arguments of association and differentiation to established worldviews, like traditional microeconomics, earlier institutionalism, Austrian and radical economics, and also within the new institutional economics itself, in order to advance his theory. His resourcefulness defie...

Sociological explanations of economic growth.

Science.gov (United States)

Marsh, R M

1988-01-01

Even if questions of how resources are distributed within and between societies are the main concern, it is necessary to continue to grapple with the issue of the causes of economic growth since economic growth and level of development continue to be among the most important causes of inequality, poverty, unemployment, and the quality of life. This paper's dependent variable is the economic growth rate of 55 less developed countries (LDCs) over 2 time periods. 1970-78 and 1965-84. The causal model consists of control variables--level of development and domestic investment in 1965--and a variety of independent variables drawn from major sociological theories of economic growth published during the last 3 decades. Multiple regression analysis shows that, net of the effects of the 2 control variables, the variables which have the strongest effect on economic growth are: 1) direct foreign investment, which has a negative effect, 2) the proportion of the population in military service, and 3) the primary school enrollment ratio, both of which have positive effects on economic growth. On the other hand, variables drawn from some theories receive no empirical support. The mass media of communications, ethnolinguistic heterogeneity, democracy and human rights, income inequality, and state-centric theory's key variable, state strength, all fail to show any significant impact on economic growth rates when the control variables and the significant independent variables are held constant. The theoretical implications of these findings are discussed.

The Culture of Economics

OpenAIRE

Stephen Marglin

2009-01-01

Stephen Marglin examines how the culture of economics has impacted on Third World cultures. He argues that economics is possessed by its own theory of culture based on the market as the organizing principle of life, one that we need to go beyond.

A physical detail relevant to the Savic-Kasanin theory of behaviour of materials under high pressure

International Nuclear Information System (INIS)

Celebonovic, V.

1982-01-01

P. Savic and R. Kasanin have proposed a theory of behaviour of materials under high pressure (Savic, 1981). Their theory can be applied to the explanation of the internal structures of planets and stars. The author proposes, a simple method for the calculation of the internal temperatures of the terrestrial planets. All the parameters needed for the application of the method can be obtained from the SK theory. (Auth.)

Prioritizing health services research: an economic perspective.

Science.gov (United States)

Gandjour, Afschin

2016-05-01

Given limited resources policymakers need to decide about how much and in what areas of health services research (HSR) to invest. The purpose of this study is to provide guidance for priority setting of HSR projects based on economic theory. The conceptual analysis starts from the premise that competition in health care is valuable-a position that seems to predominate among Western policymakers. The principle of competition rests on economic theory and, in particular, its branch of welfare economics. Based on economic theory, the role of HSR is to detect and alleviate information asymmetry, negative externalities, and harm caused by competition and inappropriate incentives for competition. A hierarchy of HSR projects is provided; following the ethical principle of harm ('do not harm'), the detection and prevention of harm would receive highest priority among HSR projects. Agreeing that competition is valuable in achieving efficiency and quality of care (and therefore agreeing to the assumptions of economic theory) implies accepting the role of HSR in detecting market failure and the HSR hierarchy as suggested. Disagreement would require an alternative coherent concept of improving efficiency and quality of care.

State Policy of Stimulation of Industrial Competitiveness under Conditions of Economic Integration

Directory of Open Access Journals (Sweden)

Kovalchuk Viacheslav H.

2014-03-01

Full Text Available The article is devoted to problems of state regulatory policy of stimulation of economic growth, increase of efficiency of activity of industrial branches of the country. It considers examples of foreign experience in the part of state support of domestic manufacturers. It shows possible variants of integration of co-operation between CIS countries on the basis of specialisation, co-operation and joint activity for achieving economic growth of economies. It demonstrates an automated system of mass servicing of customers, which is offered to be used in the structure of associations of trade enterprises. It offers ways of achievement of competitive advantages of domestic enterprises under conditions of globalisation by means of introduction of clusters of the consumer market enterprises. The article reveals their shortcomings and possibilities of development in the territory of Ukraine under conditions of limited financial resources. It acknowledges that measures of the fiscal policy should be directed, first of all, at support of creation of associations of medium enterprises of the light and other branches of industry and agriculture, which have development potential. It identifies main elements of creation of state programmes of support and development of the cluster form of organisation of the light and other branches of industry, agriculture and trade.

CONSIDERATIONS ON THE EVOLUTION OF ROMANIAN FOREIGN TRADE UNDER THE IMPACT OF ECONOMIC CRISIS

Directory of Open Access Journals (Sweden)

DOBROTĂ GABRIELA

2011-12-01

Full Text Available The foreign trade represent the engine of renewal of productive structures of developed countries and the essential vector for the development of newly industrialized nations as countries that can not be considered as belonging to the developing countries, mainly due to exports development. Nobody doubts the need for foreign trade and its possible beneficial effects for the economy of a country, which is supported by John Stuart Mill classical economist, who said that "openness to foreign trade ... is sometimes the effect of an industrial revolution as a country whose resources are poor" This paper analyses, on the one side, the importance of foreign trade and his evolution in 2001– 2010 period, and, on the other side, the consequences of the economic crisis on it. The period under review includes the last years of economic growth in Romania and the first years of actual economic crisis., because the global economic crisis is reflected strongly in the evolution of Romania's foreign trade, which in February 2009, has seen a veritable collapse over the same period of the previous year.

Decision Making under Ecological Regime Shift: An Experimental Economic Approach

OpenAIRE

Kawata, Yukichika

2011-01-01

Environmental economics postulates the assumption of homo economicus and presumes that externality occurs as a result of the rational economic activities of economic agents. This paper examines this assumption using an experimental economic approach in the context of regime shift, which has been receiving increasing attention. We observe that when externality does not exist, economic agents (subjects of experimemt) act economically rationally, but when externality exists, economic agents avoi...

Structural reliability analysis under evidence theory using the active learning kriging model

Science.gov (United States)

Yang, Xufeng; Liu, Yongshou; Ma, Panke

2017-11-01

Structural reliability analysis under evidence theory is investigated. It is rigorously proved that a surrogate model providing only correct sign prediction of the performance function can meet the accuracy requirement of evidence-theory-based reliability analysis. Accordingly, a method based on the active learning kriging model which only correctly predicts the sign of the performance function is proposed. Interval Monte Carlo simulation and a modified optimization method based on Karush-Kuhn-Tucker conditions are introduced to make the method more efficient in estimating the bounds of failure probability based on the kriging model. Four examples are investigated to demonstrate the efficiency and accuracy of the proposed method.

Risk Management and Insurance Decisions under Ambiguity

DEFF Research Database (Denmark)

Martínez-Correa, Jimmy

I study the impact of ambiguity on insurance decisions and the optimality of insurance contracts. My tractable approach allows me to study the interaction between risk and ambiguity attitudes. When insurance decisions are made independently of other assets, for a given increase in wealth, both risk...... portfolio theory that assumes Subjective Expected Utility theory; however, it provides hints to a possible solution of the under-diversification puzzle of households. I also identify conditions under which more risk or ambiguity aversion decreases the demand for coinsurance. Additionally, I show...... a counterexample to a classical result in insurance economics where an insurance contract with straight deductible is dominated by a coinsurance contract. Finally, I find that a modified Borch rule characterizes the optimal insurance contract with bilateral risk and ambiguity attitudes and heterogeneity in beliefs....

EXPERIMENT IN ECONOMICS

OpenAIRE

Basilgan, Müslüm

2011-01-01

In contrast to sciences such as physics, chemistry and psychology, using experimental methods in economics has encountered significant resistance reaching as far back as Mill. The basic reason for the resistance is the widely accepted view that experiment is not suited to analyzing complex human activity including economic behaviors. However, experimental studies, which started to test economics theories from the 1940s, have now reached an important point. The purpose of this study is to show...

Economic Darwinism

DEFF Research Database (Denmark)

Sloth, Birgitte; Whitta-Jacobsen, Hans Jørgen

2011-01-01

We define an evolutionary process of "economic Darwinism" for playing the field, symmetric games. The process captures two forces. One is "economic selection": if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced...... in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-)activity than does Nash equilibrium....

What Factors Constitute Structures of Clustering Creative Industries? Incorporating New Institutional Economics and New Economic Sociology into A Conceptual Framework

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Poppy Ismalina

2012-11-01

Full Text Available Creative industries tend to cluster in specific places and the reasons for this phenomenon can be a multiplicity of elements linked mainly to culture, creativity, innovation and local development. In the international literature, it is pretty well recognized that creativity is frequently characterized by the agglomeration of firms so that creative industries are not homogeneously distributed across the territory but they are concentrated in the space. Three theories are becoming the dominant theoretical perspectives in agglomeration economies theory and they are increasingly being applied in industrial clusters analysis to study the effect of clustering industries. The theories are Marshall’s theoretical principles of localization economies, Schmitz’s collective efficiency and Porter’s five-diamond approach. However, those have adequately theorized neither the institutionalization process through which change takes place nor the socio-economic context of the institutional formations of clustering creative industries. This text begins by reviewing three main theories to more fully articulate institutionalization processes of an economic institution. Specifically, this paper incorporates new institutional economics (NIE and new economic sociology (NES to explain the processes associated with creating institutional practices within clustering creative industries. Both streams of institutional theory constitute that economic organizations are socially constructed. Next, this text proposes the framework that depicts the socio-economic context better and more directly addresses the dynamics of enacting, embedding and changing organizational features and processes within clustering creative industries. Some pertinent definitions are offered to be used in a conceptual framework of research about how economic institutions like clustering creative industries constitute their structures.

Foundational Concepts and Underlying Theories for Majors in "Biochemistry and Molecular Biology"

Science.gov (United States)

Tansey, John T.; Baird, Teaster, Jr.; Cox, Michael M.; Fox, Kristin M.; Knight, Jennifer; Sears, Duane; Bell, Ellis

2013-01-01

Over the past two years, through an NSF RCN UBE grant, the ASBMB has held regional workshops for faculty members and science educators from around the country that focused on identifying: 1) core principles of biochemistry and molecular biology, 2) essential concepts and underlying theories from physics, chemistry, and mathematics, and 3)…

Teaching Economics to Business Students through the Lens of Corporate Social Responsibility and Sustainability

Science.gov (United States)

Maxfield, Sylvia

2011-01-01

Corporate "social-issues management" courses are often taught without in-depth reference to economics, but they afford an opportunity both to review ground-level microeconomics issues including pricing and profit maximization under different market structures and to introduce more advanced topics such as externalities, introductory game theory,…

Applying Economics Using Interactive Learning Modules

Science.gov (United States)

Goma, Ophelia D.

2010-01-01

This article describes the use of web-based, interactive learning modules in the principles of economics course. The learning modules introduce students to important, historical economic events while providing real-world application of the economic theory presented in class. Each module is designed to supplement and complement the economic theory…

Sustainable Innovation: Eco-development tendencies and Theory of Communicative Action Standpoint

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Dany Flávio Tonelli

2013-04-01

Full Text Available The paper aims to show new production tendencies, trying to find out if they can be seen under a sustainable innovation perspective and if their logical action presents a connection to Habermas’ Theory of Communicative Action. Considering the current innovation theories it is worth saying that specific approaches facing environmental sustainability are not common. Based on such scope, Industrial Ecology and Integrated Production Systems are highlighted. They are in the mainstream because they try to guide themselves not just by economic concerns, but also considering the articulation demand among different subjective and objective elements. The tendencies draw proposals to policies’ transformations – regarding production methods – by placing economical, social and environmental dimensions in an inseparable way. However, even though after analyzing systems we did not identify any relation to the “Theory of Communicative Action”, the habermasian approach is recognized as useful to innovation processes once achieved by consensus and mutual understanding.

Professional norms, public service motivation and economic incentives

DEFF Research Database (Denmark)

Andersen, Lotte Bøgh

2007-01-01

The theories of professions, public service motivation, and economic incentives explain the behaviour of the producers of publicly financed services differently. They emphasize professional norms, sector, and economic incentives, respectively. The few existing attempts to integrate these theories...... have, however, indicated that these factors interact. Using interviews, surveys and registers, the paper investigated how professional norms, economic incentives and sector affected the behaviour of Danish dentists and physicians. It was found that when strong professional norms existed, economic...... incentives were unimportant for both public and private employees. In contrast, when no firm professional norm applied, economic incentives affected behaviour. Controlling for different economic incentives, sector does not seem to affect the behaviour much. The results imply that the economic...

Tawhidic Based Economic System: A Preliminary Conception

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Nurul Hilmiyah Hilmiyah

2016-12-01

Full Text Available This study investigates contemporary mainstream economic system, does Islamic Economics taking advantage of the shortfall of the system outlined above based on Tawhidical approach? By using descriptive qualitative method this paper proposed the appropriate of Islamic economics theorize that the Islamic system provide the ideal form of a socio-economic order. This paper found that Tawhidic based economics approaches can be focused towards seeing wholes of economics, rather than parts; seeing economics activities as a worship, rather than competition; cultivating the solidarity (charity, rather than individualism and creating the justice, rather than injustice. Thus this paper designed to provide the concept of Islamic economic system with Tawhid as the basis, to fit the philosophy of economic science and reality of human life. The paper also shows the position of Tawhid in the system and theory of economy in creating prosperity and benefit for all mankind comparing to mainstream economic system and their theory.DOI: 10.15408/aiq.v9i1.3481 

THE INTERNATIONALISATION OF ACCOUNTING EDUCATION UNDER ECONOMIC GLOBALISATION

Institute of Scientific and Technical Information of China (English)

JialinXu

2004-01-01

This paper maintains that the trend toward economic globalisation, along with the resulting expectations and call for the internationalisation of accounting systems,are the basis for the concept of internationalizing Chinese accounting education. In fact, such dramatic changes in the economic and business environment have triggered suggestions for major changes in the accounting profession from the eight economic coordination organisations and international accounting bodies, which further reinforces the notion of internationalisation. Our current accounting pedagogy should reform in order to reflect the internationalisation of accounting education.

Austrian Capital Theory and the Link Between Entrepreneurship and the Theory of the Firm

DEFF Research Database (Denmark)

Foss, Kirsten; Foss, Nicolai Juul; Klein, Peter G.

2005-01-01

tangible and intangible,are heterogeneous; arranging these assets to minimize contractual hazards, toprovide efficient investment incentives, or to exploit competitive advantage isconceived as the prime task of economic organization. None of these approaches,however, is based on a systematic theory......Several writers link entrepreneurship to asset ownership, trying to incorporatethe theory of entrepreneurship into the theory of the firm. The critical link, weargue, is capital heterogeneity. Transaction cost, property rights, and resourcebasedapproaches to the firm assume that assets, both...... of capital heterogeneity. Inthis paper we outline the approach to capital developed by the Austrian schoolof economics and integrate it into an entrepreneurial theory of the firm. We refineAustrian capital theory by defining capital heterogeneity in terms of subjectivelyperceived attributes, that is...

Theories underlying health promotion interventions among cancer survivors.

Science.gov (United States)

Pinto, Bernardine M; Floyd, Andrea

2008-08-01

To review the theories that have been the basis for randomized controlled trials (RCTs) promoting health behavior change among adults diagnosed and treated for cancer. Electronic databases and recent review papers. Several theories have been used in intervention development: Transtheoretical Model, Motivational Interviewing, Social Learning and Social Cognitive Theory, Theory of Planned Behavior, and Cognitive Behavioral Theory. There is support for the efficacy of some of these interventions. However, there has been limited assessment of theory-based constructs and examination of the mediational role of theoretical constructs in intervention efficacy. There is a need to apply theory in the development of interventions to assess the effects of the intervention on the constructs and to conduct mediational tests of these constructs.

Qualitative Economics

DEFF Research Database (Denmark)

Fast, Michael; Clark II, Woodrow W

                     This book is about science -- specifically, the science of economics. Or lack thereof is more accurate. The building of any science, let alone economics, is grounded in the understanding of what is beneath the "surface" of economics. Science, and hence economics, should...... be concerned with formulating ideas that express theories which produce descriptions of how to understand phenomenon and real world experiences.                       Economics must become a science, because the essence of economics in terms of human actions, group interactions and communities are in need...... of scientific inquiry. Academics and scholars need a scientific perspective that can hypothesize, theorize document, understand and analyze human dynamics from the individual to more societal interactions. And that is what qualitative economics does; it can make economics into becoming a science. The economic...

Game theory application to operation control and pricing in deregulated power systems

International Nuclear Information System (INIS)

Yokoyama, G.R.

2000-01-01

Rapid move to a market-based electric power industry will significantly change electric utility operations. In this paper, we consider economic load dispatching rules in power systems under competitive environment when independent power producers (IPPs) are introduced and analyze their economic consequences by using game theory. An electric utility and IPPs are included in the model as players of the game where IPPs enter into the game firstly as a group, and secondly as individually. The utility and IPPs intend to maximize their own profit. We mainly use the Stackelberg strategy game theory and Nash equilibrium solution to analyze the negotiation process between the electric utility and IPPS, since it is widely recognized as rational decisions for competitive markets in terms of axiom. (author)

Economic Darwinism

DEFF Research Database (Denmark)

Sloth, Birgitte; Whitta-Jacobsen, Hans Jørgen

We define an evolutionary process of “economic Darwinism” for playing-the-field, symmetric games. The process captures two forces. One is “economic selection”: if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced...... in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-) activity than does Nash equilibrium...

Towards the conceptualisation of flow in corporate financial reporting theory

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Antoinette Rehwinkel

2015-12-01

Full Text Available Developments in science, technology and sophisticated interconnected social networks increase the speed and volatility of the flow of economic-related energies, such as financial and intellectual capital. These developments require an information theory on corporate financial reporting that is stable at a fundamental level and focused on the disclosure of those systemic attributes that are pivotal to the sustenance of business entities operating in the global economy, or in economies with similar traits. The limited success in attaining stability is caused by, among others, the application of diverse, restricted and even opposing perspectives, resulting in random theoretical development, often unaligned with economic reality. The main aim of the article is to investigate whether the introduction of an underlying concept, principle or theorem, founded on the phenomenon of flow, to general- purpose corporate financial reporting theory could contribute to rendering stable guidance for coherent theoretical development while simultaneously enhancing alignment with the current global economy. As the study was conducted at conceptual level, a qualitative, transdisciplinary theoretical research methodology was applied by taking into account related basic concepts of philosophy, corporate financial reporting theory, economics, management accounting, physics and complexity. The study suggests that the conceptualisation of flow in general-purpose corporate financial reporting theory could contribute to rendering stable guidance for further coherent theoretical development, and improve on the alignment of the theory with the dynamics of the current global economy. This finding creates the opportunity to explore a variety of new reporting approaches from a scientific perspective, which could aid to enhance the disclosure of useful financial information.

Assessing economic impact of storm surge under projected sea level rise scenarios

Science.gov (United States)

Del Angel, D. C.; Yoskowitz, D.

2017-12-01

Global sea level is expected to rise 0.2-2m by the year 2100. Rising sea level is expected to have a number of impacts such as erosion, saltwater intrusion, and decline in coastal wetlands; all which have direct and indirect socio-economic impact to coastal communities. By 2050, 25% of the world's population will reside within flood-prone areas. These statistics raise a concern for the economic cost that sea level and flooding has on the growing coastal communities. Economic cost of storm surge inundation and rising seas may include loss or damage to public facilities and infrastructure that may become temporarily inaccessible, as well as disruptions to business and services. This goal of this project is to assess economic impacts of storms under four SLR scenarios including low, intermediate-low, intermediate-high, and high (0.2m, 0.5m, 1.2m and 2m, respectively) in the Northern Gulf of Mexico region. To assess flooding impact on communities from storm surge, this project utilizes HAZUS-MH software - a Geographic Information System (GIS)-based modeling tool developed by the Federal Emergency Management Agency - to estimate physical, economic, and social impacts of natural disasters such as floods, earthquakes and hurricanes. The HAZUS database comes integrated with aggregate and site specific inventory which includes: demographic data, general building stock, agricultural statistics, vehicle inventory, essential facilities, transportation systems, utility systems (among other sensitive facilities). User-defined inundation scenarios will serve to identify assets at risk and damage estimates will be generated using the Depth Damage Function included in the HAZUS software. Results will focus on 3 communities in the Gulf and highlight changes in storm flood impact. This approach not only provides a method for economic impact assessment but also begins to create a link between ecosystem services and natural and nature-based features such as wetlands, beaches and dunes

Economics vis-à-vis Politics of Venezuela under the Chavez Regime 1998-2012

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Ramesh Chandra Das

2016-01-01

Full Text Available In today’s world most of the countries are following the market rule to determine their economic determinants with some to follow the mixed role of the government. There are a very few countries or states that are following the socialistic nature of development. One such country is Venezuela which has a long history of socialism and the degree of socialism got magnified under the regime of Hugo Chavez. The last election result in favour of Chavez has put some questions before the economists and politicians regarding its grounds. The present study has been framed in line with examining whether the role of economic factors have done the trick for Chavez to regain the presidential power. The study for the period of 1998-2010 has observed that the country has suffered in major economic factors compared to two Latin heroes Brazil and Argentina, albeit he has won the election. The study further observed that there are certain political grounds that played role for the favourable verdict.

China's energy consumption under the global economic crisis: Decomposition and sectoral analysis

International Nuclear Information System (INIS)

Li, Fangyi; Song, Zhouying; Liu, Weidong

2014-01-01

It is now widely recognized that there is a strong relationship between energy consumption and economic growth. Most countries′ energy demands declined during the economic depression of 2008–2009 when a worldwide economic crisis occurred. As an export-oriented economy, China suffered a serious exports decline in the course of the crisis. However, it was found that energy consumption continued to increase. Against such a background, this paper aims to assess and explain the factors causing the growth of energy consumption in China. First, we will explain the impact of domestic final use and international trade on energy consumption by using decomposition analysis. Second, embodied energy and its variation across sectors are quantified to identify the key sectors contributing to the growth. Lastly, the policy implications for long-term energy conservation are discussed. The results show that the decline in exports was one of the driving forces for energy consumption reduction in the crisis, but that the growth of domestic demand in manufacturing and construction, largely stimulated by economic stimulus plans, had the opposite effect on energy consumption. International trade contributed to decreasing energy consumption of China during and after the crisis because the structure of exports and imports changed in this period. - Highlights: • We analyze the reasons for China's energy consumption change under the global economic crisis during 2007–2010. • Domestic final use growth, especially in construction and manufacturing of machinery and equipment, resulted in energy consumption increase. • International trade is identified as a driver of energy consumption reduction during and after the crisis. • Increasing China's share of consumption or reducing its share of investment in the GDP can reduce national energy intensity

The Contribution of J.M. Keynes to the Analysis of the Psychological Motives of Economic Behavior

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Maria A. Kozlova

2016-01-01

Full Text Available The article examines the contribution of John Maynard Keynes to the study of the psychological motives of economic behavior. The origins of the analysis of the psychological motives in economics before Keynes are reviewed. The relative importance of rational and irrational motives of economic behavior in the Keynesian theory is analyzed. It is shown that Keynes's analysis of the behavior of the economic agents under uncertainty and the lack of information contributed to the elaboration of the bounded rationality theory by Simon. The article also describes the input of Keynes to the formation of a new «Keynesian» model of human behavior, which implies the importance of expectations, taking into account the psychological and social factors of economic behavior. The main psychological tendencies in the actions of the consumers and investors described by Keynes (the basic psychological law, liquidity preference, the influence of the «market psychology» on the investor's decisions and their relevance nowadays are examined. The article shows further development of the ideas of Keynes in the Akerlof and Shiller's theory of animal spirits and in the financial instability hypothesis of Minsky. It also gives a description of a confidence multiplier, introduced by Akerlof and Shiller, and shows how the cosumers' confidence can be measured nowadays. Besides, the article stresses that the study of the psychological motives of economic behavior, undertaken by Keynes, contributed to the development of such new disciplines at the interface between the economy and psychology as the economic psychology and behavioral economics.

Transportation strategy development under economic uncertainty.

Science.gov (United States)

2013-05-01

The interests of the researchers here were to understand various modes for developing long term : that is strategic plans with particular concern for the economic uncertainties one invariably : faces in such a planning environment. Often resou...

Some Links Between Game Theory and Decision Theory in Economics

OpenAIRE

Dominika Crnjac; Goran Martinovic

2009-01-01

Certain optimal strategies based upon game theory are given in this paper. A decision-making function and a risk function are explained. Decision-making criteria are applied for determining best decision-making functions with respect to a specific criterion. Special attention is given to the minimax criterion.

Economic Development and "National Competitive Advantage"

OpenAIRE

J.T., Goode

2002-01-01

Despite the preponderance of economic theory and research which argues to the contrary, the notion that national economies stand in a fundamentally competitive relationship with one another remains surprisingly widespread. In recent years, some of the most influential impetus for this misperception has come from Michael Porter's conceptualization of "the competitive advantage of nations" in relation to economic development and date theory. It is argued that Porter neither proposes nor demonst...

Teaching Writing in Economics

Science.gov (United States)

Schmeiser, Katherine

2017-01-01

In this article, the author provides motivation and a template for integrating and teaching writing in a variety of economics courses: core theory or introductory courses, topic courses, and economic writing/research courses. For each assignment, pedagogical reasoning and syllabus integration are discussed. Additionally, the author shows that…

Economic Assessment of Flood Control Facilities under Climate Uncertainty: A Case of Nakdong River, South Korea

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Kyeongseok Kim

2018-01-01

Full Text Available Climate change contributes to enhanced flood damage that has been increasing for the last several decades. Understanding climate uncertainties improves adaptation strategies used for investment in flood control facilities. This paper proposes an investment decision framework for one flood zone to cope with future severe climate impacts. This framework can help policy-makers investigate the cost of future damage and conduct an economic assessment using real options under future climate change scenarios. The proposed methodology provides local municipalities with an adaptation strategy for flood control facilities in a flood zone. Using the proposed framework, the flood prevention facilities in the Nakdong River Basin of South Korea was selected as a case study site to analyze the economic assessment of the investments for flood control facilities. Using representative concentration pathway (RCP climate scenarios, the cost of future flood damage to 23 local municipalities was calculated, and investment strategies for adaptation were analyzed. The project option value was determined by executing an option to invest in an expansion that would adapt to floods under climate change. The results of the case study showed that the proposed flood facilities are economically feasible under both scenarios used. The framework is anticipated to present guidance for establishing investment strategies for flood control facilities of a flood zone in multiple municipalities’ settings.

Il vichismo economico (Vico, Galiani, Croce-Economia, liberalismo economico (Economic Vichism (Vico, Galiani, Croce – economics, economic liberalism

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G. TAGLIACOZZO

2014-08-01

Full Text Available As every reader of Giambattista Vico’s New Science knows, the book contains a section on “poetic economy” - the economy of the “age of heroes”. This was the first study of such a topic ever conceived. Vico also dealt with some socio-economic problems of later stages of social evolution. In none of his works, however, did he pay specific attention to problems of economics stricto sensu. The present work provides a study of the set of direct and indirect inferences that can be drawn from the principles of the New Science in the economic field - what we might call “Economic Vichism” - and the relationship or analogy, if any, of “Economic Vichism” to later economic theories or viewpoints, and its place in the history of economics.JEL: B11, B31

Game theory.

Science.gov (United States)

Dufwenberg, Martin

2011-03-01

Game theory is a toolkit for examining situations where decision makers influence each other. I discuss the nature of game-theoretic analysis, the history of game theory, why game theory is useful for understanding human psychology, and why game theory has played a key role in the recent explosion of interest in the field of behavioral economics. WIREs Cogni Sci 2011 2 167-173 DOI: 10.1002/wcs.119 For further resources related to this article, please visit the WIREs website. Copyright © 2010 John Wiley & Sons, Ltd.

A theory of construction management?

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Gerard de Valence

2012-09-01

Full Text Available The links between theory and construction management (CM, and for that matter construction economics (CE, are not strong (see de Valence 2011. This may be one of the reasons why they have not gained complete acceptance as academic disciplines and are not seen as distinct branches of economics and management respectively. Another reason may be that products and production (the focus of management and economic theories respectively are not the same as projects and project management in general, and construction projects and CM in particular.

Towards a Theory of Revealed Economic Behavior: The Economic-Neurosciences Interface

NARCIS (Netherlands)

Pennings, J.M.E.; Garcia, P.; Hendrix, E.M.T.

2005-01-01

Based on recent findings from economics and the neurosciences, we present a conceptual decision-making model that provides insight into human decision-making and illustrates how behavioral outcomes are transformed into phenomena. The model may be viewed as a bridge between the seemingly disparate

Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

Energy Technology Data Exchange (ETDEWEB)

Bompard, E.; Ma, Y.C. [Politecnico di Torino, Dept. of Electrical Engineering, Torino (Italy); Ragazzi, E. [CERIS, Institute for Economic Research on Firms and Growth, CNR, National Research Council, Moncalieri, TO (Italy)

2006-03-15

Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged at a lower price, leading to higher market efficiency. Electricity markets are pretty different from other commodities mainly due to the physical constraints related to the network structure that may impact the market performance. The network structure of the system on which the economic transactions needs to be undertaken poses strict physical and operational constraints. Strategic interactions among producers that game the market with the objective of maximizing their producer surplus must be taken into account when modeling competitive electricity markets. The physical constraints, specific of the electricity markets, provide additional opportunity of gaming to the market players. Game theory provides a tool to model such a context. This paper discussed the application of game theory to physical constrained electricity markets with the goal of providing tools for assessing the market performance and pinpointing the critical network constraints that may impact the market efficiency. The basic models of game theory specifically designed to represent the electricity markets will be presented. IEEE30 bus test system of the constrained electricity market will be discussed to show the network impacts on the market performances in presence of strategic bidding behavior of the producers. (authors)

Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

Science.gov (United States)

Bompard, E.; Ma, Y. C.; Ragazzi, E.

2006-03-01

Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged at a lower price, leading to higher market efficiency. Electricity markets are pretty different from other commodities mainly due to the physical constraints related to the network structure that may impact the market performance. The network structure of the system on which the economic transactions need to be undertaken poses strict physical and operational constraints. Strategic interactions among producers that game the market with the objective of maximizing their producer surplus must be taken into account when modeling competitive electricity markets. The physical constraints, specific of the electricity markets, provide additional opportunity of gaming to the market players. Game theory provides a tool to model such a context. This paper discussed the application of game theory to physical constrained electricity markets with the goal of providing tools for assessing the market performance and pinpointing the critical network constraints that may impact the market efficiency. The basic models of game theory specifically designed to represent the electricity markets will be presented. IEEE30 bus test system of the constrained electricity market will be discussed to show the network impacts on the market performances in presence of strategic bidding behavior of the producers.

Organizational theory for dissemination and implementation research.

Science.gov (United States)

Birken, Sarah A; Bunger, Alicia C; Powell, Byron J; Turner, Kea; Clary, Alecia S; Klaman, Stacey L; Yu, Yan; Whitaker, Daniel J; Self, Shannon R; Rostad, Whitney L; Chatham, Jenelle R Shanley; Kirk, M Alexis; Shea, Christopher M; Haines, Emily; Weiner, Bryan J

2017-05-12

Even under optimal internal organizational conditions, implementation can be undermined by changes in organizations' external environments, such as fluctuations in funding, adjustments in contracting practices, new technology, new legislation, changes in clinical practice guidelines and recommendations, or other environmental shifts. Internal organizational conditions are increasingly reflected in implementation frameworks, but nuanced explanations of how organizations' external environments influence implementation success are lacking in implementation research. Organizational theories offer implementation researchers a host of existing, highly relevant, and heretofore largely untapped explanations of the complex interaction between organizations and their environment. In this paper, we demonstrate the utility of organizational theories for implementation research. We applied four well-known organizational theories (institutional theory, transaction cost economics, contingency theories, and resource dependency theory) to published descriptions of efforts to implement SafeCare, an evidence-based practice for preventing child abuse and neglect. Transaction cost economics theory explained how frequent, uncertain processes for contracting for SafeCare may have generated inefficiencies and thus compromised implementation among private child welfare organizations. Institutional theory explained how child welfare systems may have been motivated to implement SafeCare because doing so aligned with expectations of key stakeholders within child welfare systems' professional communities. Contingency theories explained how efforts such as interagency collaborative teams promoted SafeCare implementation by facilitating adaptation to child welfare agencies' internal and external contexts. Resource dependency theory (RDT) explained how interagency relationships, supported by contracts, memoranda of understanding, and negotiations, facilitated SafeCare implementation by balancing

Political instability and economic growth: an empirical evidence from the Baltic states

OpenAIRE

Ladislava Grochová; Luděk Kouba

2011-01-01

For more than last 20 decades, new political economics has been dealing with theories of economic growth (for example influential contributions by Mancur Olson, Dani Rodrik). However, less attention has been paid to their empirical verification. The new political economics growth theory defines some factors that are necessary for economic growth among which political stability. Our aim is to test the theory focused on political stability empirically in order to enrich the studies with recent ...

Ronald Coase and the Methodology of Economics

OpenAIRE

Sam Peltzman

2011-01-01

Ronald Coase was skeptical that economics is a positive science in the sense made famous by Milton Friedman. According to Coase, that notion is inaccurate on two counts: economists accept much theory without bothering to test it empirically, and much of their empirical work does not test theory. Coase's view is that we seek (and find) truth in economics via a competition of ideas that uses an eclectic variety of methods. I argue that, as a description of what empirical economics is about, muc...

Is Economics an Empirical Science? If not, can it become one?

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Sergio Mario Focardi

2015-07-01

Full Text Available Today’s mainstream economics, embodied in Dynamic Stochastic General Equilibrium (DSGE models, cannot be considered an empirical science in the modern sense of the term: it is not based on empirical data, is not descriptive of the real-world economy, and has little forecasting power. In this paper, I begin with a review of the weaknesses of neoclassical economic theory and argue for a truly scientific theory based on data, the sine qua non of bringing economics into the realm of an empirical science. But I suggest that, before embarking on this endeavor, we first need to analyze the epistemological problems of economics to understand what research questions we can reasonably ask our theory to address.. I then discuss new approaches which hold the promise of bringing economics closer to being an empirical science. Among the approaches discussed are the study of economies as complex systems, econometrics and econophysics, artificial economics made up of multiple interacting agents as well as attempts being made inside present main stream theory to more closely align the theory with the real world

Collective Order within Family; An Axial Phenomenon regarding the Effect of Islamic Teachings on the ‎Economic Action of Family: A Study Based on the Grounded Theory

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‎ V. Arshadi

2016-02-01

Full Text Available The present article aims to identify the intermediate factors regarding the effect of Islamic teachings on family economic action through an interpretative and multifactorial approach. The method is qualitative and is based on grounded theory method”. Due to the interdisciplinary nature of the matter, a semi-structured interview with 16 experts on Islamic economy, Muslim consumer behavior, educational sciences, psychology and sociology and the issue of values and actions has served as the main research tool. The samples were selected through purposive sampling and snowball method, and interviews were conducted to the point of theoretical saturation. Findings of data analysis in this three steps show that factors such as the synergy of the high quality of transfer of teachings from formal and informal education institutes, high quality of the perception of teachings by family members, high quality of family income resources, and faith and belief in the accountability in the Hereafter can create collective order within family based on the subjective value of Islamic economic teaching. The collective order is influenced by "underlying" and "structural" factors and leads to discretion behavior. This paper is also innovative in terms of its profound look into the formation of economic behavior within the family.

On the costs of self-interested economic behavior : How does stinginess get under the skin?

NARCIS (Netherlands)

Dunn, Elizabeth W.; Ashton-James, Claire E.; Hanson, Margaret D.; Aknin, Lara B.

The present study examined how financial decisions 'get under the skin'. Participants played an economic game in which they could donate some of their payment to another student. Affect was measured afterward and salivary cortisol was measured before and afterward. Participants who kept more money

Expected utility violations evolve under status-based selection mechanisms.

Science.gov (United States)

Dickson, Eric S

2008-10-07

The expected utility theory of decision making under uncertainty, a cornerstone of modern economics, assumes that humans linearly weight "utilities" for different possible outcomes by the probabilities with which these outcomes occur. Despite the theory's intuitive appeal, both from normative and from evolutionary perspectives, many experiments demonstrate systematic, though poorly understood, patterns of deviation from EU predictions. This paper offers a novel theoretical account of such patterns of deviation by demonstrating that EU violations can emerge from evolutionary selection when individual "status" affects inclusive fitness. In humans, battles for resources and social standing involve high-stakes decision making, and assortative mating ensures that status matters for fitness outcomes. The paper therefore proposes grounding the study of decision making under uncertainty in an evolutionary game-theoretic framework.

An Application of Convergence Theory to Japan's Post-WWII Economic "Miracle."

Science.gov (United States)

Valdes, Benigno

2003-01-01

Provides an explanation of the post-World War II economic phenomenon of Japan as a process of economic convergence within the framework of the neoclassical Solo-Swan model of economic growth. States that this interpretation helps students understand economic growth and development and Japan's modern economic history. (JEH)

Institutional Cognitive Economics: some recent developments

OpenAIRE

Gigante, Anna Azzurra

2013-01-01

By investigating the connection between mind working and institutional processes, Institutional Cognitive Economics turns out to be the most appropriate in order to overcome some limits in New Institutional Economics. This leads us to develop further this approach. This paper integrates F. Hayek’s theory on knowledge production and A. Bandura’s social cognitive theory with the fertile contributions coming from Self-Organization approach and cognitive path-dependence, by considering also the r...

New Directions in the Economic Theory of the Environment

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Carraro, Carlo; Siniscalco, Domenico

1998-01-01

This volume provides a broad survey of the recent developments in the new economics of the environment and reports the state of the art on a new set of environmental problems, analytical tools and economic policies. Throughout the volume environmental problems are analyzed in an open, generally noncompetitive economy with transnational or global externalities. The first part deals with the relationship between the environment, economic growth and technological innovation. The second part analyzes the optimal design of environmental taxation, while the third part considers the international dimension of environmental policy.

Navigating catastrophes: Local but not global optimisation allows for macro-economic navigation of crises

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Harré, Michael S.

2013-02-01

Two aspects of modern economic theory have dominated the recent discussion on the state of the global economy: Crashes in financial markets and whether or not traditional notions of economic equilibrium have any validity. We have all seen the consequences of market crashes: plummeting share prices, businesses collapsing and considerable uncertainty throughout the global economy. This seems contrary to what might be expected of a system in equilibrium where growth dominates the relatively minor fluctuations in prices. Recent work from within economics as well as by physicists, psychologists and computational scientists has significantly improved our understanding of the more complex aspects of these systems. With this interdisciplinary approach in mind, a behavioural economics model of local optimisation is introduced and three general properties are proven. The first is that under very specific conditions local optimisation leads to a conventional macro-economic notion of a global equilibrium. The second is that if both global optimisation and economic growth are required then under very mild assumptions market catastrophes are an unavoidable consequence. Third, if only local optimisation and economic growth are required then there is sufficient parametric freedom for macro-economic policy makers to steer an economy around catastrophes without overtly disrupting local optimisation.

On the costs of self-interested economic behavior: how does stinginess get under the skin?

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Dunn, Elizabeth W; Ashton-James, Claire E; Hanson, Margaret D; Aknin, Lara B

2010-05-01

The present study examined how financial decisions 'get under the skin'. Participants played an economic game in which they could donate some of their payment to another student. Affect was measured afterward and salivary cortisol was measured before and afterward. Participants who kept more money for themselves reported less positive affect, more negative affect, and more shame. Shame predicted higher levels of post-game cortisol, controlling for pre-game cortisol; stingy economic behavior therefore produced a significant indirect effect on cortisol via shame. Thus, shame and cortisol represent plausible emotional and biological pathways linking everyday decisions with downstream consequences for health.

Use of programme theory to understand the differential effects of interventions across socio-economic groups in systematic reviews-a systematic methodology review.

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Maden, Michelle; Cunliffe, Alex; McMahon, Naoimh; Booth, Andrew; Carey, Gina Michelle; Paisley, Suzy; Dickson, Rumona; Gabbay, Mark

2017-12-29

Systematic review guidance recommends the use of programme theory to inform considerations of if and how healthcare interventions may work differently across socio-economic status (SES) groups. This study aimed to address the lack of detail on how reviewers operationalise this in practice. A methodological systematic review was undertaken to assess if, how and the extent to which systematic reviewers operationalise the guidance on the use of programme theory in considerations of socio-economic inequalities in health. Multiple databases were searched from January 2013 to May 2016. Studies were included if they were systematic reviews assessing the effectiveness of an intervention and included data on SES. Two reviewers independently screened all studies, undertook quality assessment and extracted data. A narrative approach to synthesis was adopted. A total of 37 systematic reviews were included, 10 of which were explicit in the use of terminology for 'programme theory'. Twenty-nine studies used programme theory to inform both their a priori assumptions and explain their review findings. Of these, 22 incorporated considerations of both what and how interventions do/do not work in SES groups to both predict and explain their review findings. Thirteen studies acknowledged 24 unique theoretical references to support their assumptions of what or how interventions may have different effects in SES groups. Most reviewers used supplementary evidence to support their considerations of differential effectiveness. The majority of authors outlined a programme theory in the "Introduction" and "Discussion" sections of the review to inform their assumptions or provide explanations of what or how interventions may result in differential effects within or across SES groups. About a third of reviews used programme theory to inform the review analysis and/or synthesis. Few authors used programme theory to inform their inclusion criteria, data extraction or quality assessment. Twenty

REDISCOVERING MISES-HAYEK MONETARY AND BUSINESS CYCLE THEORY IN LIGHT OF THE CURRENT CRISIS: CREDIT EXPANSION AS A SOURCE OF ECONOMIC BOOM AND BUST

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Marcin Mrowiec

2013-10-01

Full Text Available The article starts with a brief description of Mises’ monetary theory, with emphasis on the Misesian differentiation of two kinds of credit: commodity and circulation credit, and with the description of the impact of circulation credit expansion on the business cycle. Further on it is described how Mises’ insights constituted the kernel of Austrian Business Cycle Theory, and how the same observations on the nature of credit constituted the kernel of the Chicago Plan (though Mises’ views on the nature of credit led him to different conculsions than it led the authors of the Chicago Plan, and how this plan is being “rediscovered” now. The following sections deal with observations of one of the preeminent current macroeconomic researches, Mr. Claudio Borio, on the elasticity of credit as the source of the current crisis, and on the importance of the financial cycle in analysing the current economic crisis. The author of this text demonstrates that Austrian Business Cycle Theory gave the same answer regarding the sources of economic crises that now modern macroeconomic theory seems to be approaching, and that the postulates for successful financial cycle modeling are already included in the ABCT. Finally, some observations on the current crisis, as well as proposals of avenues of further research are proposed.

The Economics of Terrorism: Economics Methods of Analysis in the Study of Terrorism and Counterterrorism

Science.gov (United States)

2010-12-01

addition to outlining definitions, data sources, choice theory , game theory , and the economic consequences of terrorism, this study identifies how...stratégiques. Les auteurs sont le Maj Alain Rollin, le Maj Meaghan Setter et Mme Rachel Lea Heide, Ph.D., sous la direction du Lcol William Yee...18 7 Choice Theory and its Applications 7.1

Extremal graph theory

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Bollobas, Bela

2004-01-01

The ever-expanding field of extremal graph theory encompasses a diverse array of problem-solving methods, including applications to economics, computer science, and optimization theory. This volume, based on a series of lectures delivered to graduate students at the University of Cambridge, presents a concise yet comprehensive treatment of extremal graph theory.Unlike most graph theory treatises, this text features complete proofs for almost all of its results. Further insights into theory are provided by the numerous exercises of varying degrees of difficulty that accompany each chapter. A

Characteristics of Criteria for Selecting Investment Projects under Uncertainty

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Adrian ENCIU

2011-07-01

Full Text Available Within financial theory and practice, there are used five main criteria for selecting investment projects: the net present value (NPV criterion, the internal rate of return (IRR criterion, the return term (RT criterion, the profitability ratio (PR criterion and the supplementary return (SR criterion. The assay will emphasize several new properties of said indexes for investment assessment, having as starting point the hypotheses of (approximately normal repartition of cash-flows generated by an investment project. The obtained results point to the fact that the NPV indexes (the analysis of this criterion was carried out in the article “The NPV Criterion for Valuing Investments under Uncertainty”, Daniel Armeanu, Leonard Lache, Economic Computation and Economic Cybernetics Studies and Research no. 4/2009, pp. 133-143, IRR, PR, RT and SR register normal repartitions, therefore simplifying the investment analysis under economic uncertainty, by the capacity of building confidence intervals and assessing probabilities for the inferior limits of said investment assessment indexes.

Economics of climate policy and collective decision making

International Nuclear Information System (INIS)

Buergenmeier, B.; Ferrier, C.; Ingold, K.; Perret, S.; Baranzini, A.; Germond-Duret, C.; Kypreos, S.; Wokaun, A.; Rafaj, P.

2006-01-01

This paper explores the reasons why economic instruments of climate change are reluctantly applied and stresses the need for interdisciplinary research linking economic theory and empirical testing to deliberative political procedures. It is divided in three parts. The first one recalls the main issues in implementing Cost-Benefit Analysis such as information problems, uncertainties, discounting the future and irreversibilities. The second part shows how these issues can be treated in integrated assessment and techno-economic models and presents a case study, which shows that (1) The chosen scenario tends to stabilize atmospheric CO2 concentration at around 550 ppm in the long run; (2) Exclusion of possibility to trade CO2 emission permits under a cap regime would increase the cost of emission abatement for OECD countries; and (3) Combining different flexibility instruments might lead to significant gains in the overall cost of climate policy. The third part presents results of a survey conducted among the main economic and environmental associations in Switzerland. The survey reveals conflicting views on economic instruments. It shows how the social acceptability of these instruments can be improved in taking explicitly into account these opposing views of special interest groups. Therefore, policy scenarios should be selected in combining techno-economic models with empirical studies about their political and normative context

Non-cooperative game theory

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Fujiwara-Greve, Takako

2015-01-01

This is a textbook for university juniors, seniors, and graduate students majoring in economics, applied mathematics, and related fields. Each chapter is structured so that a core concept of that chapter is presented with motivations, useful applications are given, and related advanced topics are discussed for future study. Many helpful exercises at various levels are provided at the end of each chapter. Therefore, this book is most suitable for readers who intend to study non-cooperative game theory rigorously for both theoretical studies and applications. Game theory consists of non-cooperative games and cooperative games. This book covers only non-cooperative games, which are major tools used in current economics and related areas. Non-cooperative game theory aims to provide a mathematical prediction of strategic choices by decision makers (players) in situations of conflicting interest. Through the logical analyses of strategic choices, we obtain a better understanding of social (economic, business) probl...

Economics Foundations for an Entrepreneurial Marketing Concept

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Duus, Henrik Johannsen

1997-01-01

and its strategy, parts of the essence of the marketing concept are being challenged. This article proposes that a new entrepreneurial marketing concept based on an ex-ante supply-push conception of marketing, and which focuses on future market demands and the future capabilities of the firm......This article examines developments in economics and strategic management theory and discusses their implications for marketing. Recent advances in economic theory have suggested new inputs to marketing management theory and practice. With the advance of the “new economic theories” of the firm......, will be capable of solving these problems. Possible elements in a new approach are suggested. The focus is on industrial marketing, very long-term and very general environmental analysis, and on innovation, industrial transformation and the building of the competencies of the firm....

Investigation on law and economics of listed companies' financing preference based on complex network theory.

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Jian Yang

Full Text Available In this paper, complex network theory is used to make time-series analysis of key indicators of governance structure and financing data. We analyze scientific listed companies' governance data from 2010 to 2014 and divide them into groups in accordance with the similarity they share. Then we select sample companies to analyze their financing data and explore the influence of governance structure on financing decision and the financing preference they display. This paper reviews relevant laws and regulations of financing from the perspective of law and economics, then proposes reasonable suggestions to consummate the law for the purpose of regulating listed companies' financing. The research provides a reference for making qualitative analysis on companies' financing.

Water scarcity under various socio-economic pathways and its potential effects on food production in the Yellow River basin

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Yin, Yuanyuan; Tang, Qiuhong; Liu, Xingcai; Zhang, Xuejun

2017-02-01

Increasing population and socio-economic development have put great pressure on water resources of the Yellow River (YR) basin. The anticipated climate and socio-economic changes may further increase water stress. Many studies have investigated the changes in renewable water resources under various climate change scenarios, but few have considered the joint pressure from both climate change and socio-economic development. In this study, we assess water scarcity under various socio-economic pathways with emphasis on the impact of water scarcity on food production. The water demands in the 21st century are estimated based on the newly developed shared socio-economic pathways (SSPs) and renewable water supply is estimated using the climate projections under the Representative Concentration Pathway (RCP) 8.5 scenario. The assessment predicts that the renewable water resources would decrease slightly then increase. The domestic and industrial water withdrawals are projected to increase in the next a few decades and then remain at the high level or decrease slightly during the 21st century. The increase in water withdrawals will put the middle and lower reaches in a condition of severe water scarcity beginning in the next a few decades. If 40 % of the renewable water resources were used to sustain ecosystems, a portion of irrigated land would have to be converted to rain-fed agriculture, which would lead to a 2-11 % reduction in food production. This study highlights the links between water, food and ecosystems in a changing environment and suggests that trade-offs should be considered when developing regional adaptation strategies.

Econophysics: from Game Theory and Information Theory to Quantum Mechanics

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Jimenez, Edward; Moya, Douglas

2005-03-01

Rationality is the universal invariant among human behavior, universe physical laws and ordered and complex biological systems. Econophysics isboth the use of physical concepts in Finance and Economics, and the use of Information Economics in Physics. In special, we will show that it is possible to obtain the Quantum Mechanics principles using Information and Game Theory.

Economic fables

OpenAIRE

Moran, Shane

2010-01-01

I had the good fortune to grow up in a wonderful area of Jerusalem, surrounded by a diverse range of people: Rabbi Meizel, the communist Sala Marcel, my widowed Aunt Hannah, and the intellectual Yaacovson. As far as I'm concerned, the opinion of such people is just as authoritative for making social and economic decisions as the opinion of an expert using a model. Part memoir, part crash-course in economic theory, this deeply engaging book by one of the world's foremost economists looks at ...

Fundamental Fields of Post-Schumpeterian Evolutionary Economics

DEFF Research Database (Denmark)

Andersen, Esben Sloth

2014-01-01

economic evolution as a process of the innovative renewal of business routines. He also explored the idea that the development of economics requires coordinated efforts within the “fundamental fields” of theory, history, statistics, and economic sociology. The paper applies this idea in an analysis...

Fundamental fields of post-Schumpeterian evolutionary economics

DEFF Research Database (Denmark)

Andersen, Esben Sloth

economic evolution as a process of the innovative renewal of business routines. He also explored the idea that the development of economics requires coordinated efforts within the “fundamental fields” of theory, history, statistics, and economic sociology. The paper applies this idea in an analysis...

Principles, Economic and Institutional Prerequisites for Fiscal Decentralization under Conditions of Post-Conflict Reconstruction

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Vishnevsky Valentine P.

2016-11-01

Full Text Available The aim of the article is to study principles, economic and institutional prerequisites for fiscal decentralization on post-conflict territories. It is determined that fiscal decentralization is one of the main ways to solve problems of post-conflict areas. There justified principles, economic and institutional prerequisites of fiscal decentralization on post-conflict territories with regard to the specificity of individual spheres of fiscal relations. Moreover, different spheres of fiscal relations require different approaches: the sphere of public revenues — providing economic efficiency with the formation of the tax structure contributing to the expansion of the tax base; the sphere of public spending — ensuring social justice and transparency in allocation of social cost at the local level; the sphere of subsidies — narrowing the scope of application of intergovernmental transfers with organizing the redistribution of financial resources under the principle of «center - post-conflict regions - post-conflict recipients»; the sphere of external assistance — ensuring proper coordination for cultivation of new co-operative institutions.

Evaluation of Possible Proximate Mechanisms Underlying the Kinship Theory of Intragenomic Conflict in Social Insects.

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Galbraith, David A; Yi, Soojin V; Grozinger, Christina M

2016-12-01

Kinship theory provides a universal framework in which to understand the evolution of altruism, but there are many molecular and genetic mechanisms that can generate altruistic behaviors. Interestingly, kinship theory specifically predicts intragenomic conflict between maternally-derived alleles (matrigenes) and paternally-derived alleles (patrigenes) over the generation of altruistic behavior in cases where the interests of the matrigenes and patrigenes are not aligned. Under these conditions, individual differences in selfish versus altruistic behavior are predicted to arise from differential expression of the matrigenes and patrigenes (parent-specific gene expression or PSGE) that regulate selfish versus altruistic behaviors. As one of the leading theories to describe PSGE and genomic imprinting, kinship theory has been used to generate predictions to describe the reproductive division of labor in social insect colonies, which represents an excellent model system to test the hypotheses of kinship theory and examine the underlying mechanisms driving it. Recent studies have confirmed the predicted differences in the influence of matrigenes and patrigenes on reproductive division of labor in social insects, and demonstrated that these differences are associated with differences in PSGE of key genes involved in regulating reproductive physiology, providing further support for kinship theory. However, the mechanisms mediating PSGE in social insects, and how PSGE leads to differences in selfish versus altruistic behavior, remain to be determined. Here, we review the available supporting evidence for three possible epigenetic mechanisms (DNA methylation, piRNAs, and histone modification) that may generate PSGE in social insects, and discuss how these may lead to variation in social behavior. © The Author 2016. Published by Oxford University Press on behalf of the Society for Integrative and Comparative Biology. All rights reserved. For permissions please email

Sense of control under uncertainty depends on people's childhood environment: a life history theory approach.

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Mittal, Chiraag; Griskevicius, Vladas

2014-10-01

Past research found that environmental uncertainty leads people to behave differently depending on their childhood environment. For example, economic uncertainty leads people from poor childhoods to become more impulsive while leading people from wealthy childhoods to become less impulsive. Drawing on life history theory, we examine the psychological mechanism driving such diverging responses to uncertainty. Five experiments show that uncertainty alters people's sense of control over the environment. Exposure to uncertainty led people from poorer childhoods to have a significantly lower sense of control than those from wealthier childhoods. In addition, perceptions of control statistically mediated the effect of uncertainty on impulsive behavior. These studies contribute by demonstrating that sense of control is a psychological driver of behaviors associated with fast and slow life history strategies. We discuss the implications of this for theory and future research, including that environmental uncertainty might lead people who grew up poor to quit challenging tasks sooner than people who grew up wealthy. 2014 APA, all rights reserved