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on Post Keynesian Economics |
| By: | Hirshleifer, David |
| Abstract: | Behavioral finance studies the application of psychology to finance, with a focus on individual-level cognitive biases. I describe here the sources of judgment and decision biases, how they affect trading and market prices, the role of arbitrage and flows of wealth between more rational and less rational investors, how firms exploit inefficient prices and incite misvaluation, and the effects of managerial judgment biases. There is need for more theory and testing of the effects of feelings on financial decisions and aggregate outcomes. Especially, the time has come to move beyond behavioral finance to social finance, which studies the structure of social interactions, how financial ideas spread and evolve, and how social processes affect financial outcomes. |
| Keywords: | Investor psychology, heuristics, overconfidence, attention, feelings, reference dependence, social finance |
| JEL: | G02 G1 G11 G14 G3 |
| Date: | 2014–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59028&r=pke |
| By: | Debra L. Brucker (University of New Hampshire); Sophie Mitra (Fordham University); Navena Chaitoo (Fordham University); Joseph Mauro (Fordham University) |
| Abstract: | This paper examines whether disability is a correlate of poverty when poverty is measured using (1) the official poverty measure; (2) the supplemental poverty measure (SPM); and (3) two newly created multidimensional poverty measures. Methods: Data from the Current Population Survey is used to explore the relationship between poverty and disability for each measure. Differences across disability status were tested for statistical significance. Results: Disability is associated with poverty, irrespective of the poverty measure under use. The gap in poverty rates between persons with and without disabilities is smaller when using the SPM as compared to the official poverty measure. The gap in poverty rates between persons with and without disabilities is highest when using multidimensional poverty measures. Conclusion: Working age persons with disabilities are more likely to be poor whatever the measure under use. They are a disadvantaged group in the U.S. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:frd:wpaper:dp2014-01&r=pke |
| By: | Matthew Weinzierl (Harvard Business School) |
| Abstract: | Commentary and political rhetoric on taxes in the United States have long included appeals to Smith's (1776) "classical" logic of benefit based taxation in which an individual's benefit from the state is tied to his or her income-earning ability. Modern optimal tax theory, in contrast, largely ignores the principle of benefit based taxation. This paper shows that the classical logic of benefit based taxation can be readily incorporated into the formal structure of modern theory. Moreover, by applying Lindahl's well-known methods, optimal policy according to that principle can be characterized analytically as depending on a few potentially estimable statistics. An objective for policy that gives weight to both this principle and the familiar utilitarian criterion can explain a variety of features of existing policy that are difficult to reconcile in standard theory, consistent with its apparent role in real-world normative reasoning over tax design. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed014:344&r=pke |
| By: | Wesson, Joseph |
| Abstract: | This is a survey of some ideas relating to the theory of economic growth and how economic growth impacts the natural world. |
| Keywords: | Growth environment population |
| JEL: | O1 O10 O3 O30 O33 O4 O47 Q01 Q56 |
| Date: | 2014–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59404&r=pke |
| By: | Estrada, Fernando |
| Abstract: | The History Schumpeter´s of Economic Analysis, is a tour de forcé of scholarship. The display of erudition is 'truly unbelievable. How could one man have acquired and then digested so much knowledge? Not only does the History offer two thousand years of economics, from Aristotle to Paul Samuelson, but also it ranges most expertly over all the other social sciences, history and belles lettres as well. For more than 1,100 pages the prose flows on in a way that one has come to expect from Schumpeterthe fluent style, the vivid analogy, the striking metaphor, the arresting aside. Our goal is to present the central ideas of Schumpeter on the complex relationships between Economic History and Epistemology of Science. This design has three aspects that interest us: (a) its amplitude to conceive the economy as part of the overall development of scientific knowledge; (b) its relevance applied and the examples used by the author; (c) its currently facing tremendous methodological problems facing the economy with the other sciences. |
| Keywords: | Schumpeter, History of economics, Epistemology, Economtric, Industrial |
| JEL: | B12 B13 B15 B25 B31 H5 P12 P14 P16 Z1 Z13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59019&r=pke |