nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒02‒16
four papers chosen by
Karl Petrick
University of the West Indies

  1. What Behavioural Economics Teaches Personnel Economics By Uschi Backes-Gellner; Donata Bessey; Kerstin Pull; Simone Tuor
  2. The Economics and Psychology of Personality Traits By Lex Borghans; Angela Lee Duckworth; James J. Heckman; Bas ter Weel
  3. The Case for Price Stability, Then and Now: A Retrospective Note on John W. Crow's 1988 Eric J. Hanson Memorial Lecture By David Laidler
  4. Foolishness and Identity: Amartya Sen and Adam Smith By Caroline Gerschlager

  1. By: Uschi Backes-Gellner (Institute for Strategy and Business Economics, University of Zurich); Donata Bessey (Institute for Strategy and Business Economics, University of Zurich); Kerstin Pull (Eberhard Karls Universitaet Tuebingen); Simone Tuor (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: In this survey article, we review results from behavioural and experimental economics that have a potential application in the field of personnel economics. While personnel economics started out with a “clean” economic perspective on human resource management (HRM), recently it has broadened its perspective by increasingly taking into account the results from laboratory experiments. Besides having inspired theory-building, the integration of behavioural economics into personnel economics has gone hand in hand with a strengthening of empirical analyses (field experiments and survey data) complementing the findings from the laboratory. Concentrating on employee compensation as one particular field of application, we show that for personnel economics there is indeed much to be learnt from the recent developments in behavioural economics. Moreover, integrating behavioural economics into personnel economics bears the chance of eventually reconciling personnel economics and “classic” HRM analysis that has a long tradition of relying on social psychology as a classical point of reference.
    Keywords: Behavioural Economics, Personnel Economics
    JEL: J3 M52 C9
    Date: 2008–02
  2. By: Lex Borghans; Angela Lee Duckworth; James J. Heckman; Bas ter Weel
    Abstract: This paper explores the interface between personality psychology and economics. We examine the predictive power of personality and the stability of personality traits over the life cycle. We develop simple analytical frameworks for interpreting the evidence in personality psychology and suggest promising avenues for future research.
    JEL: I2 J24
    Date: 2008–02
  3. By: David Laidler (University of Western Ontario)
    Abstract: John Crow's 1988 Hanson Lecture argued for making price stability the goal of Canada's monetary policy, but in the early 1990s, political and economic circumstances led policy makers to settle for a 2 percent inflation target instead. The recently instituted review of the Inflation Control Program has put price stability on the policy menu again, and the current relevance of Crow's 1988 case is assessed in the light of the past 20 years' experience.
    Keywords: price stability; inflation targeting; Bank of Canada; monetary policy
    JEL: E42 E58 E61
    Date: 2008
  4. By: Caroline Gerschlager (Free University of Brussels, DULBEA, av. F. D. Roosevelt, 50, B-1050 Brussels,)
    Abstract: Drawing on Amartya Sen the paper aims at a better understanding of the motivational foundation of the economic agent by analysing Adam Smith’s insights into the foolishness of human ambitions. It inquires whether there is another side to the pursuit of self-interest in Adam Smith and particularly accentuates his parable of the poor man’s son as a prototypical example. Complementing the standard views of the self and their recent extensions, the present analysis of the parable advances a description of economic identity based on selfreflexivity and conscious change of preferences.
    Keywords: hypertrophic self-love, self-deceit, illusion, change of preference, self-reflexivity.
    JEL: B B21 B D
    Date: 2008–01

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