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A Good Economic Theory: Building Blocks of Economic Understanding
Author: Dr. Eleanor Vance, Professor of Economics, University of California, Berkeley. Dr. Vance specializes in econometrics and the philosophy of economic modeling, with a particular focus on the development and application of robust economic theories.
Publisher: Oxford University Press, a leading academic publisher with a long-standing reputation for excellence in economics and social sciences.
Editor: Dr. David Miller, Senior Editor at Oxford University Press, specializing in economics and finance. Dr. Miller holds a PhD in Economics from the London School of Economics and has over 15 years of experience in academic publishing.
Keywords: A good economic theory, economic modeling, econometrics, positive economics, normative economics, economic methodology, predictive power, falsifiability, parsimony, realism, microeconomics, macroeconomics.
What constitutes a "good" economic theory?
The quest for a good economic theory is a central pursuit within economics. It's not simply about creating models; it's about building robust frameworks that accurately reflect economic reality, provide insightful predictions, and offer effective policy guidance. But what precisely defines "good" in this context? The criteria are multifaceted and often debated, but several key characteristics consistently emerge.
1. Predictive Power: The Hallmark of a Good Economic Theory
A good economic theory must possess significant predictive power. It should accurately forecast economic phenomena under specified conditions. A theory that consistently fails to predict real-world outcomes is ultimately of limited value. This predictive power stems from the theory's ability to capture the essential relationships between variables relevant to the economic phenomenon under study. For instance, a theory explaining inflation should accurately predict changes in the inflation rate based on factors like money supply growth, aggregate demand, and supply shocks. The accuracy of these predictions is crucial in evaluating the theory's merit.
2. Falsifiability: Testing the Limits of a Good Economic Theory
Karl Popper's concept of falsifiability is central to the scientific method, and it applies equally to economics. A good economic theory must be falsifiable; it must be possible to conceive of empirical evidence that could disprove it. A theory that is immune to refutation is essentially untestable and therefore not a valuable scientific contribution. For example, a theory claiming that all economic agents always act rationally, regardless of evidence to the contrary, is not falsifiable and therefore lacks the rigor of a good economic theory. Empirical testing, through statistical analysis and econometric modeling, plays a crucial role in evaluating a theory's falsifiability.
3. Parsimony: Simplicity and Elegance in Economic Modeling
A good economic theory should be parsimonious, meaning it explains economic phenomena using the fewest possible assumptions and variables. While complexity might be necessary in certain instances, a simpler theory that accurately captures the essential elements is generally preferred. This principle of Occam's razor emphasizes that simpler explanations are often more likely to be correct. Overly complex models can become unwieldy, difficult to test, and prone to errors. Parsimony enhances the clarity and understanding of a good economic theory, making it more accessible and applicable.
4. Realism: Bridging the Gap Between Theory and Reality
While abstraction is inherent in economic modeling, a good economic theory strives for realism. Its assumptions should, to a reasonable degree, reflect the real-world behavior of economic agents and the structure of the economy. While perfect realism is unattainable, a theory that rests on entirely unrealistic assumptions is likely to be of limited practical use. For instance, a model assuming perfect information for all market participants might provide elegant mathematical solutions but will likely yield inaccurate predictions in many real-world markets characterized by information asymmetry.
5. Internal Consistency and Logical Coherence
A good economic theory must be internally consistent and logically coherent. Its assumptions should not contradict each other, and its conclusions should logically follow from its premises. A theory riddled with internal contradictions undermines its credibility and limits its usefulness. Rigorous mathematical and logical reasoning are essential in ensuring the internal consistency of economic models.
6. Explanatory Power: Understanding Economic Phenomena
Beyond prediction, a good economic theory should provide insights into the underlying mechanisms that drive economic phenomena. It should offer explanations for observed patterns and relationships, allowing us to understand why things happen the way they do. A theory that simply describes correlations without explaining the causal links is less valuable than one that provides a mechanistic understanding of the economic processes at play.
7. Policy Relevance: Informing Economic Decisions
A good economic theory should have policy relevance. It should offer insights that can inform economic policy decisions, helping policymakers to design interventions that achieve desired outcomes. The ability to translate theoretical insights into practical policy recommendations is a crucial criterion for evaluating the usefulness of an economic theory.
Methodologies and Approaches to Building a Good Economic Theory
Several methodologies are employed in developing a good economic theory. These include:
Positive economics: Focuses on describing and explaining economic phenomena as they are, without making value judgments. It emphasizes empirical observation and testing.
Normative economics: Deals with what ought to be, involving value judgments and policy recommendations. It builds upon positive economics but incorporates ethical and social considerations.
Econometrics: Uses statistical methods to test economic theories and estimate relationships between economic variables. It's crucial for assessing the predictive power and falsifiability of theories.
Game theory: Analyzes strategic interactions between economic agents, providing insights into decision-making in situations of interdependence.
Agent-based modeling: Simulates the behavior of individual economic agents and their interactions to understand emergent macroeconomic phenomena.
Conclusion
The development of a good economic theory is an ongoing process of refinement and improvement. While there is no single definitive answer to what constitutes a "good" theory, the criteria discussed above – predictive power, falsifiability, parsimony, realism, internal consistency, explanatory power, and policy relevance – provide valuable benchmarks for evaluating and developing economic theories. By adhering to these principles and employing a range of rigorous methodologies, economists can strive to create models that provide increasingly accurate and insightful understandings of the complex economic world.
FAQs
1. What is the difference between a model and a theory in economics? A model is a simplified representation of an aspect of the economy, while a theory is a more comprehensive framework that explains relationships between variables and predicts outcomes. A model can be part of a larger theory.
2. Can an economic theory be completely accurate? No, economic theories are simplifications of a complex reality and are always subject to revision as new data emerges and understanding improves.
3. How can I tell if an economic theory is biased? Look for assumptions that favor specific outcomes, a lack of transparency in methodology, or the selective use of data.
4. What role does mathematics play in economic theory? Mathematics provides a precise language for formulating theories, testing hypotheses, and drawing rigorous conclusions.
5. How are economic theories tested? Theories are tested through empirical analysis, econometrics, and comparisons with real-world data.
6. What is the difference between microeconomics and macroeconomics in terms of theory? Microeconomics focuses on individual agents and markets, while macroeconomics deals with aggregate economic variables and the overall economy. Their theoretical approaches differ accordingly.
7. How do changes in technology impact economic theory? Technological advancements often require revisions to existing economic theories to account for new economic realities and opportunities.
8. What is the role of assumptions in economic theory? Assumptions simplify complex realities, making it possible to build manageable models. However, unrealistic assumptions can limit the theory's applicability.
9. Can economic theories be applied across different cultures and societies? While some fundamental principles may apply universally, the specifics of economic theories must often be adapted to account for cultural and societal differences.
Related Articles:
1. The Role of Assumptions in Economic Modeling: Discusses the importance and limitations of assumptions in building economic models, emphasizing the trade-off between simplicity and realism.
2. Econometrics and the Testing of Economic Hypotheses: Explores various econometric techniques used to test economic theories and assess their predictive power.
3. The Philosophy of Science and Economic Methodology: Examines the philosophical foundations of economic inquiry, including issues of falsifiability, realism, and the nature of scientific progress.
4. Game Theory and its Applications in Economics: Provides an overview of game theory and its use in understanding strategic interactions and market outcomes.
5. Agent-Based Modeling and the Study of Complex Economic Systems: Explores agent-based modeling as a tool for analyzing complex economic systems with emergent properties.
6. The History of Economic Thought: Traces the evolution of economic theories from classical economics to modern perspectives.
7. Behavioral Economics and its Challenges to Traditional Theory: Examines behavioral economics and its insights into the limitations of traditional rational actor models.
8. Macroeconomic Theory and Policy: Provides a comprehensive overview of macroeconomic theories and their applications in policymaking.
9. Microeconomic Theory and Market Structures: Explores microeconomic theories related to market structures, such as perfect competition, monopoly, and oligopoly.
| a good economic theory: Economic Theory Gary S Becker, 2017-09-08 Others might have called this book Micro Theory or Price Theory. Becker's choice of Economic Theory as the title for his book reflects his deep belief that there is only one kind of economic theory, not separate theories for micro problems, macro problems, non-market decisions, and so on. Indeed, as he notes, the most promising development in recent years in the literature on large scale economic problems such as unemployment has been the increasing reliance on utility maximization, a concept generally identified with microeconomics. Microeconomics is the subject matter of this volume, but it is emphatically not confined to microeconomics in the literal sense of micro units like firms or households. Becker's main interest is in market behavior of aggregations of firms and households. Although important inferences are drawn about individual firms and households, the author tries to understand aggregate responses to changes in basic economic parameters like tax rates, tariff schedules, technology, or antitrust provisions. His discussion is related to the market sector in industrialized economies, but the principles developed are applied to other sectors and different kinds of choices. Becker argues that economic analysis is essential to understand much of the behavior traditionally studied by sociologists, anthropologists, and other social scientists. The broad definition of economics in terms of scarce means and competing ends is taken seriously and should be a source of pride to economists since it provides insights into a wide variety of problems. Practically all statements proved mathematically are also provided geometrically or verbally in the body of the text. |
| a good economic theory: Economics , 2015 Russell Cooper and Andrew John have written an economics text aimed directly at students from its very inception. You?re thinking, Yeah, sure. I?ve heard that before. This textbook, Economics: Theory Through Applications, centers around student needs and expectations through two premises:? Students are motivated to study economics if they see that it relates to their own lives.? Students learn best from an inductive approach, in which they are first confronted with a problem, and then led through the process of solving that problem. Many books claim to present economics in a way that is digestible for students; Russell and Andrew have truly created one from scratch. This textbook will assist you in increasing students? economic literacy both by developing their aptitude for economic thinking and by presenting key insights about economics that every educated individual should know. How? Russell and Andrew have done three things in this text to accomplish that goal: Applications Ahead of Theory: They present all the theory that is standard in Principles books. But by beginning with applications, students get to learn why this theory is needed. Learning through Repetition: Important tools appear over and over again, allowing students to learn from repetition and to see how one framework can be useful in many different contexts. A Student?s Table of Contents vs. An Instructor?s Table of Contents: There is no further proof that Russell and Andrew have created a book aimed specifically at educating students about economics than their two tables of contents. |
| a good economic theory: Development, Geography, and Economic Theory Paul R. Krugman, 1997 Krugman examines the course of economic geography and development theory to shed light on the nature of economic inquiry. |
| a good economic theory: Economic Theory and Cognitive Science Don Ross, 2007-01-26 In this study, Don Ross explores the relationship of economics to other branches of behavioral science, asking, in the course of his analysis, under what interpretation economics is a sound empirical science. The book explores the relationships between economic theory and the theoretical foundations of related disciplines that are relevant to the day-to-day work of economics—the cognitive and behavioral sciences. It asks whether the increasingly sophisticated techniques of microeconomic analysis have revealed any deep empirical regularities—whether technical improvement represents improvement in any other sense. Casting Daniel Dennett and Kenneth Binmore as its intellectual heroes, the book proposes a comprehensive model of economic theory that, Ross argues, does not supplant, but recovers the core neoclassical insights, and counters the caricaturish conception of neoclassicism so derided by advocates of behavioral or evolutionary economics. Because he approaches his topic from the viewpoint of the philosophy of science, Ross devotes one chapter to the philosophical theory and terminology on which his argument depends and another to related philosophical issues. Two chapters provide the theoretical background in economics, one covering developments in neoclassical microeconomics and the other treating behavioral and experimental economics and evolutionary game theory. The three chapters at the heart of the argument then apply theses from the philosophy of cognitive science to foundational problems for economic theory. In these chapters, economists will find a genuinely new way of thinking about the implications of cognitive science for economics, and cognitive scientists will find in economic behavior, a new testing site for the explanations of cognitive science. |
| a good economic theory: Contending Economic Theories Richard D. Wolff, Stephen A. Resnick, 2012-09-07 A systematic comparison of the 3 major economic theories—neoclassical, Keynesian, and Marxian—showing how they differ and why these differences matter in shaping economic theory and practice. Contending Economic Theories offers a unique comparative treatment of the three main theories in economics as it is taught today: neoclassical, Keynesian, and Marxian. Each is developed and discussed in its own chapter, yet also differentiated from and compared to the other two theories. The authors identify each theory's starting point, its goals and foci, and its internal logic. They connect their comparative theory analysis to the larger policy issues that divide the rival camps of theorists around such central issues as the role government should play in the economy and the class structure of production, stressing the different analytical, policy, and social decisions that flow from each theory's conceptualization of economics. Building on their earlier book Economics: Marxian versus Neoclassical, the authors offer an expanded treatment of Keynesian economics and a comprehensive introduction to Marxian economics, including its class analysis of society. Beyond providing a systematic explanation of the logic and structure of standard neoclassical theory, they analyze recent extensions and developments of that theory around such topics as market imperfections, information economics, new theories of equilibrium, and behavioral economics, considering whether these advances represent new paradigms or merely adjustments to the standard theory. They also explain why economic reasoning has varied among these three approaches throughout the twentieth century, and why this variation continues today—as neoclassical views give way to new Keynesian approaches in the wake of the economic collapse of 2008. |
| a good economic theory: Economic Theory and Exhaustible Resources P. S. Dasgupta, G. M. Heal, 1979 A book on the economics of exhaustible resources requires no justification. A long book does. The purist will find disquieting our two-asset, constant population model with which we analyse growth possibilities in an economy with exhaustible resources. |
| a good economic theory: Big Players and the Economic Theory of Expectations R. Koppl, 2002-06-19 Investment and all other economic actions depend on 'subjective' expectations. The problem is how to construct a theory of expectations that assumes people interpret their situations in unpredictable ways. Building on the evolutionary economics of F.A.Hayek, Koppl gives us such a theory. This includes a theory of 'Big Players', demonstrating that discretionary policy interventions create ignorance and uncertainty. The volume uses innovative methods to address many vital problems in economic theory, and connects with many other schools of economics including New Institutional Economics, Constitutional Economics and Post Walsarian Economics. |
| a good economic theory: The Economists' Hour Binyamin Appelbaum, 2019-09-03 In this lively and entertaining history of ideas (Liaquat Ahamed, The New Yorker), New York Times editorial writer Binyamin Appelbaum tells the story of the people who sparked four decades of economic revolution. Before the 1960s, American politicians had never paid much attention to economists. But as the post-World War II boom began to sputter, economists gained influence and power. In The Economists' Hour, Binyamin Appelbaum traces the rise of the economists, first in the United States and then around the globe, as their ideas reshaped the modern world, curbing government, unleashing corporations and hastening globalization. Some leading figures are relatively well-known, such as Milton Friedman, the elfin libertarian who had a greater influence on American life than any other economist of his generation, and Arthur Laffer, who sketched a curve on a cocktail napkin that helped to make tax cuts a staple of conservative economic policy. Others stayed out of the limelight, but left a lasting impact on modern life: Walter Oi, a blind economist who dictated to his wife and assistants some of the calculations that persuaded President Nixon to end military conscription; Alfred Kahn, who deregulated air travel and rejoiced in the crowded cabins on commercial flights as the proof of his success; and Thomas Schelling, who put a dollar value on human life. Their fundamental belief? That government should stop trying to manage the economy.Their guiding principle? That markets would deliver steady growth, and ensure that all Americans shared in the benefits. But the Economists' Hour failed to deliver on its promise of broad prosperity. And the single-minded embrace of markets has come at the expense of economic equality, the health of liberal democracy, and future generations. Timely, engaging and expertly researched, The Economists' Hour is a reckoning -- and a call for people to rewrite the rules of the market. A Wall Street Journal Business BestsellerWinner of the Porchlight Business Book Award in Narrative & Biography |
| a good economic theory: History of Economic Theory T. Negishi, 1989-06-15 This volume aims to interest students of modern economic theory in the history of economics. For this purpose, past economic theories are considered from the point of view of current economic theories and translated, if possible and necessary, into mathematical models. It is emphasized that the currently dominating mainstream theory is not the only possible theory, and that there are many past theories which have important significance to the advancement of economic theory in the present situation, or will have it in the near future.After a brief discussion on the history of economics from the point of view of contemporary economic theory, a bird's-eye view of the historical development of economics is given so that readers can see the significance of topics to be discussed in subsequent chapters in a proper historical perspective. These topics are carefully chosen to show not only what great economists in the past contributed to the development of economics, but also what suggestions for solving our own current problems we can obtain by reworking problems they had to face. The book can be used in advanced undergraduate as well as graduate classes on the history of economics. Mathematical techniques used can easily be understood by advanced undergraduates of economics major, since some models constructed originally by contemporary mathematical economists are carefully reformulated without losing the essence, basic calculus and the rudiments of linear algebra being sufficient for understanding. |
| a good economic theory: Economics Rules Dani Rodrik, 2015 A leading economist trains a lens on his own discipline to uncover when it fails and when it works. |
| a good economic theory: Good Economics for Hard Times Abhijit V. Banerjee, Esther Duflo, 2019-11-12 The winners of the Nobel Prize show how economics, when done right, can help us solve the thorniest social and political problems of our day. Figuring out how to deal with today's critical economic problems is perhaps the great challenge of our time. Much greater than space travel or perhaps even the next revolutionary medical breakthrough, what is at stake is the whole idea of the good life as we have known it. Immigration and inequality, globalization and technological disruption, slowing growth and accelerating climate change--these are sources of great anxiety across the world, from New Delhi and Dakar to Paris and Washington, DC. The resources to address these challenges are there--what we lack are ideas that will help us jump the wall of disagreement and distrust that divides us. If we succeed, history will remember our era with gratitude; if we fail, the potential losses are incalculable. In this revolutionary book, renowned MIT economists Abhijit V. Banerjee and Esther Duflo take on this challenge, building on cutting-edge research in economics explained with lucidity and grace. Original, provocative, and urgent, Good Economics for Hard Times makes a persuasive case for an intelligent interventionism and a society built on compassion and respect. It is an extraordinary achievement, one that shines a light to help us appreciate and understand our precariously balanced world. |
| a good economic theory: An Introduction to Mathematical Analysis for Economic Theory and Econometrics Dean Corbae, Maxwell Stinchcombe, Juraj Zeman, 2009-02-17 Providing an introduction to mathematical analysis as it applies to economic theory and econometrics, this book bridges the gap that has separated the teaching of basic mathematics for economics and the increasingly advanced mathematics demanded in economics research today. Dean Corbae, Maxwell B. Stinchcombe, and Juraj Zeman equip students with the knowledge of real and functional analysis and measure theory they need to read and do research in economic and econometric theory. Unlike other mathematics textbooks for economics, An Introduction to Mathematical Analysis for Economic Theory and Econometrics takes a unified approach to understanding basic and advanced spaces through the application of the Metric Completion Theorem. This is the concept by which, for example, the real numbers complete the rational numbers and measure spaces complete fields of measurable sets. Another of the book's unique features is its concentration on the mathematical foundations of econometrics. To illustrate difficult concepts, the authors use simple examples drawn from economic theory and econometrics. Accessible and rigorous, the book is self-contained, providing proofs of theorems and assuming only an undergraduate background in calculus and linear algebra. Begins with mathematical analysis and economic examples accessible to advanced undergraduates in order to build intuition for more complex analysis used by graduate students and researchers Takes a unified approach to understanding basic and advanced spaces of numbers through application of the Metric Completion Theorem Focuses on examples from econometrics to explain topics in measure theory |
| a good economic theory: Doughnut Economics Kate Raworth, 2018-03-08 Economics is the mother tongue of public policy. It dominates our decision-making for the future, guides multi-billion-dollar investments, and shapes our responses to climate change, inequality, and other environmental and social challenges that define our times. Pity then, or more like disaster, that its fundamental ideas are centuries out of date yet are still taught in college courses worldwide and still used to address critical issues in government and business alike. That’s why it is time, says renegade economist Kate Raworth, to revise our economic thinking for the 21st century. In Doughnut Economics, she sets out seven key ways to fundamentally reframe our understanding of what economics is and does. Along the way, she points out how we can break our addiction to growth; redesign money, finance, and business to be in service to people; and create economies that are regenerative and distributive by design. Named after the now-iconic “doughnut” image that Raworth first drew to depict a sweet spot of human prosperity (an image that appealed to the Occupy Movement, the United Nations, eco-activists, and business leaders alike), Doughnut Economics offers a radically new compass for guiding global development, government policy, and corporate strategy, and sets new standards for what economic success looks like. Raworth handpicks the best emergent ideas—from ecological, behavioral, feminist, and institutional economics to complexity thinking and Earth-systems science—to address this question: How can we turn economies that need to grow, whether or not they make us thrive, into economies that make us thrive, whether or not they grow? Simple, playful, and eloquent, Doughnut Economics offers game-changing analysis and inspiration for a new generation of economic thinkers. |
| a good economic theory: Foundations of Real-World Economics John Komlos, 2019-01-11 The 2008 financial crisis, the rise of Trumpism and the other populist movements which have followed in their wake have grown out of the frustrations of those hurt by the economic policies advocated by conventional economists for generations. Despite this, textbooks continue to praise conventional policies such as deregulation and hyperglobalization. This textbook demonstrates how misleading it can be to apply oversimplified models of perfect competition to the real world. The math works well on college blackboards but not so well on the Main Streets of America. This volume explores the realities of oligopolies, the real impact of the minimum wage, the double-edged sword of free trade, and other ways in which powerful institutions cause distortions in the mainstream models. Bringing together the work of key scholars, such as Kahneman, Minsky, and Schumpeter, this book demonstrates how we should take into account the inefficiencies that arise due to asymmetric information, mental biases, unequal distribution of wealth and power, and the manipulation of demand. This textbook offers students a valuable introductory text with insights into the workings of real markets not just imaginary ones formulated by blackboard economists. A must-have for students studying the principles of economics as well as micro- and macroeconomics, this textbook redresses the existing imbalance in economic teaching. Instead of clinging to an ideology that only enriched the 1%, Komlos sketches the outline of a capitalism with a human face, an economy in which people live contented lives with dignity instead of focusing on GNP. |
| a good economic theory: Altruism, Morality, and Economic Theory Edmund S. Phelps, 1975-05-21 Presents a collection of papers by economists theorizing on the roles of altruism and morality versus self-interest in the shaping of human behavior and institutions. Specifically, the authors examine why some persons behave in an altruistic way without any apparent reward, thus defying the economist's model of utility maximization. The chapters are accompanied by commentaries from representatives of other disciplines, including law and philosophy. |
| a good economic theory: General Theory Of Employment , Interest And Money John Maynard Keynes, 2016-04 John Maynard Keynes is the great British economist of the twentieth century whose hugely influential work The General Theory of Employment, Interest and * is undoubtedly the century's most important book on economics--strongly influencing economic theory and practice, particularly with regard to the role of government in stimulating and regulating a nation's economic life. Keynes's work has undergone significant revaluation in recent years, and Keynesian views which have been widely defended for so long are now perceived as at odds with Keynes's own thinking. Recent scholarship and research has demonstrated considerable rivalry and controversy concerning the proper interpretation of Keynes's works, such that recourse to the original text is all the more important. Although considered by a few critics that the sentence structures of the book are quite incomprehensible and almost unbearable to read, the book is an essential reading for all those who desire a basic education in economics. The key to understanding Keynes is the notion that at particular times in the business cycle, an economy can become over-productive (or under-consumptive) and thus, a vicious spiral is begun that results in massive layoffs and cuts in production as businesses attempt to equilibrate aggregate supply and demand. Thus, full employment is only one of many or multiple macro equilibria. If an economy reaches an underemployment equilibrium, something is necessary to boost or stimulate demand to produce full employment. This something could be business investment but because of the logic and individualist nature of investment decisions, it is unlikely to rapidly restore full employment. Keynes logically seizes upon the public budget and government expenditures as the quickest way to restore full employment. Borrowing the * to finance the deficit from private households and businesses is a quick, direct way to restore full employment while at the same time, redirecting or siphoning |
| a good economic theory: Misbehaving: The Making of Behavioral Economics Richard H. Thaler, 2015-05-11 Winner of the Nobel Prize in Economics Get ready to change the way you think about economics. Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world. Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber. Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining. Shortlisted for the Financial Times & McKinsey Business Book of the Year Award |
| a good economic theory: Economics in Christian Perspective Victor V. Claar, Robin J. Klay, 2015-04-21 Victor Claar and Robin Klay introduce students to the basic principles of economics and then evaluate the principles and issues as seen from a Christian perspective. This textbook places the economic life in the context of Christian discipleship and stewardship. This text is for use in any course needing a survey of the principles of economics. |
| a good economic theory: Essays in Positive Economics Milton Friedman, 1953 This paper is concerned primarily with certain methodological problems that arise in constructing the distinct positive science that John Neville Keynes called for, in particular, the problem how to decide whether a suggested hypothesis or theory should be tentatively accepted as part of the body of systematized knowledge concerning what is. |
| a good economic theory: Ethics and Economic Theory Khalid Mir, 2020-04 This book takes a multi-disciplinary critique of economics' first principles: the fundamental and inter-related structuring assumptions that underlie the neo-classical paradigm. These assumptions, that economic agents are rational, self-interested individuals, continue to influence the teaching of economics, research agendas and policy analyses. The book argues that both the theoretical understanding of the economy and the actual working of real-world market economies diminish the scope for thinking about the relation between ethics, economics, and the economy. It highlights how market economies may crowd out ethical behavior and our evaluation of them elides ethical reflection. The book calls for a more pluralistic and richer approach to economic theory, one that allows ample room for ethical considerations. It provides insight into understanding human motivations and human flourishing and how a good economy requires reflection on the ethical relations between the self, world, and time. |
| a good economic theory: The Years of High Theory G. L. S. Shackle, 1967-08-01 Even a decade after the end of the 1914-1918 war, economic theory assumed that the world was tranquil and orderly. By 1939 an economic slump without parallel, allied to the re-emergence of military ambition in Europe, had brought economic theorists face to face with reality. In this classic book, first published in 1967, Professor Shackle provides a study, in exact and professional language, of the precise nature, structure, presuppositions, language and inter-relations of the theories which were formulated in these fourteen years - unparalleled in the whole history of economics except perhaps by the years of the Physiocrats and Adam Smith. These theories are not prototypes on the way to something better but are of essential and permanent importance. |
| a good economic theory: A Critique of Economic Theory E. K. Hunt, Jesse G. Schwartz, 1972 Critique of mainstream capitalist economics and economic theories, comprising selected economic research essays primarily oriented toward Marxism and socialism - includes sections on (1) historical descriptions of the rise of the neo-classical school, (2) mystification and the evasion of social reality, (3) the capital controversy and income distribution, (4) values, prices and profits in commodity society, (5) the role of the State in monopoly capitalism. Bibliography and references. |
| a good economic theory: Economic Fables Ariel Rubinstein, 2012 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 economic ideas through a personal lens. Together with an introduction to some of the central concepts in modern economic thought, Ariel Rubinstein offers some powerful and entertaining reflections on his childhood, family and career. In doing so, he challenges many of the central tenets of game theory, and sheds light on the role economics can play in society at large. Economic Fables is as thought-provoking for seasoned economists as it is enlightening for newcomers to the field. |
| a good economic theory: Philosophy of Economics Uskali Mäki, 2012-06-12 Part of the Handbook of the Philosophy of Science Series edited by: Dov M. Gabbay King's College, London, UK; Paul Thagard University of Waterloo, Canada; and John Woods University of British Columbia, Canada. Philosophy of Economics investigates the foundational concepts and methods of economics, the social science that analyzes the production, distribution and consumption of goods and services. This groundbreaking collection, the most thorough treatment of the philosophy of economics ever published, brings together philosophers, scientists and historians to map out the central topics in the field. The articles are divided into two groups. Chapters in the first group deal with various philosophical issues characteristic of economics in general, including realism and Lakatos, explanation and testing, modeling and mathematics, political ideology and feminist epistemology. Chapters in the second group discuss particular methods, theories and branches of economics, including forecasting and measurement, econometrics and experimentation, rational choice and agency issues, game theory and social choice, behavioral economics and public choice, geographical economics and evolutionary economics, and finally the economics of scientific knowledge. This volume serves as a detailed introduction for those new to the field as well as a rich source of new insights and potential research agendas for those already engaged with the philosophy of economics. Provides a bridge between philosophy and current scientific findings Encourages multi-disciplinary dialogue Covers theory and applications |
| a good economic theory: International Encyclopedia of Housing and Home , 2012-10-09 Available online via SciVerse ScienceDirect, or in print for a limited time only, The International Encyclopedia of Housing and Home, Seven Volume Set is the first international reference work for housing scholars and professionals, that uses studies in economics and finance, psychology, social policy, sociology, anthropology, geography, architecture, law, and other disciplines to create an international portrait of housing in all its facets: from meanings of home at the microscale, to impacts on macro-economy. This comprehensive work is edited by distinguished housing expert Susan J. Smith, together with Marja Elsinga, Ong Seow Eng, Lorna Fox O'Mahony and Susan Wachter, and a multi-disciplinary editorial team of 20 world-class scholars in all. Working at the cutting edge of their subject, liaising with an expert editorial advisory board, and engaging with policy-makers and professionals, the editors have worked for almost five years to secure the quality, reach, relevance and coherence of this work. A broad and inclusive table of contents signals (or tesitifes to) detailed investigation of historical and theoretical material as well as in-depth analysis of current issues. This seven-volume set contains over 500 entries, listed alphabetically, but grouped into seven thematic sections including methods and approaches; economics and finance; environments; home and homelessness; institutions; policy; and welfare and well-being. Housing professionals, both academics and practitioners, will find The International Encyclopedia of Housing and Home useful for teaching, discovery, and research needs. International in scope, engaging with trends in every world region The editorial board and contributors are drawn from a wide constituency, collating expertise from academics, policy makers, professionals and practitioners, and from every key center for housing research Every entry stands alone on its merits and is accessed alphabetically, yet each is fully cross-referenced, and attached to one of seven thematic categories whose ‘wholes' far exceed the sum of their parts |
| a good economic theory: Basic Economics Thomas Sowell, 2014-12-02 The bestselling citizen's guide to economics Basic Economics is a citizen's guide to economics, written for those who want to understand how the economy works but have no interest in jargon or equations. Bestselling economist Thomas Sowell explains the general principles underlying different economic systems: capitalist, socialist, feudal, and so on. In readable language, he shows how to critique economic policies in terms of the incentives they create, rather than the goals they proclaim. With clear explanations of the entire field, from rent control and the rise and fall of businesses to the international balance of payments, this is the first book for anyone who wishes to understand how the economy functions. This fifth edition includes a new chapter explaining the reasons for large differences of wealth and income between nations. Drawing on lively examples from around the world and from centuries of history, Sowell explains basic economic principles for the general public in plain English. |
| a good economic theory: Jane Austen, Game Theorist Michael Suk-Young Chwe, 2014-03-23 How the works of Jane Austen show that game theory is present in all human behavior Game theory—the study of how people make choices while interacting with others—is one of the most popular technical approaches in social science today. But as Michael Chwe reveals in his insightful new book, Jane Austen explored game theory's core ideas in her six novels roughly two hundred years ago—over a century before its mathematical development during the Cold War. Jane Austen, Game Theorist shows how this beloved writer theorized choice and preferences, prized strategic thinking, and analyzed why superiors are often strategically clueless about inferiors. Exploring a diverse range of literature and folktales, this book illustrates the wide relevance of game theory and how, fundamentally, we are all strategic thinkers. |
| a good economic theory: Essential Economics Matthew Bishop, 2004-05-01 |
| a good economic theory: The Positive Theory of Capital Eugen von Böhm-Bawerk, 1891 Von Boehm-Bawerk is one of the leading economists of the so-called Austrian school. With Karl Menger and others, he has contributed to the development of a theory of value which has received wide acceptance, and has been the cause of still wider discussion, in the economic world. This theory, as elaborated by Boehm von Bawerk, is based largely upon psychological principles. Its chief feature consists in a searching analysis of ‘subjective value.’ In his “Capital and Interest”, the author makes a brilliant and original study of these two subjects. “The Positive Theory of Capital” is the successor to the work mentioned above. |
| a good economic theory: Governing the Commons Elinor Ostrom, 2015-09-23 Tackles one of the most enduring and contentious issues of positive political economy: common pool resource management. |
| a good economic theory: Optimal Regulation Kenneth Train, 1991 Optimal Regulation addresses the central issue of regulatory economics - how toregulate firms in a way that induces them to produce and price optimally. It synthesizes the majorfindings of an extensive theoretical literature on what constitutes optimality in various situationsand which regulatory mechanisms can be used to achieve it. It is the first text to provide aunified, modern, and nontechnical treatment of the field.The book includes models for regulatingoptimal output, tariffs, and surplus subsidy schemes, and presents all of the material graphically,with clear explanations of often highly technical topics.Kenneth E. Train is Associate AdjunctProfessor in the Department of Economics and Graduate School of Public Policy at the University ofCalifornia, Berkeley. He is also Principal of the firm Cambridge Systematics.Topics include: Thecost structure of natural monopoly (economies of scale and scope). Characterization of firstandsecond-best optimality. Surplus subsidy schemes for attaining first-best optimality. Ramsey pricesand the Vogelsang-Finsinger mechanism for attaining them. Time-ofuse (TOU) prices and Riordan'smechanisms for attaining the optimal TOU prices' Multipart and self-selecting tariffs, and Sibley'smethod for using self-selecting tariffs to achieve optimality. The Averch-Johnson model of howrate-of-return regulation induces inefficiencies. Analysis of regulation based on the firm's returnon Output, costs, or sales. Price-cap regulation. Regulatory treatment of uncertainty and its impacton the firm's behavior. Methods of attaining optimality without direct regulation (contestability,auctioning the monopoly franchise.) |
| a good economic theory: An Economic Theory of Democracy Anthony Downs, 1957 This book seeks to elucidate its subject-the governing of democratic state-by making intelligible the party politics of democracies. Downs treats this differently than do other students of politics. His explanations are systematically related to, and deducible from, precisely stated assumptions about the motivations that attend the decisions of voters and parties and the environment in which they act. He is consciously concerned with the economy in explanation, that is, with attempting to account for phenomena in terms of a very limited number of facts and postulates. He is concerned also with the central features of party politics in any democratic state, not with that in the United States or any other single country. |
| a good economic theory: The Armchair Economist Steven E. Landsburg, 2012-05-10 Air bags cause accidents, because well-protected drivers take more risks. This well-documented truth comes as a surprise to most people, but not to economists, who have learned to take seriously the proposition that people respond to incentives. In The Armchair Economist, Steven E. Landsburg shows how the laws of economics reveal themselves in everyday experience and illuminate the entire range of human behavior. Why does popcorn cost so much at the cinema? The 'obvious' answer is that the owner has a monopoly, but if that were the whole story, there would also be a monopoly price to use the toilet. When a sudden frost destroys much of the Florida orange crop and prices skyrocket, journalists point to the 'obvious' exercise of monopoly power. Economists see just the opposite: If growers had monopoly power, they'd have raised prices before the frost. Why don't concert promoters raise ticket prices even when they are sure they will sell out months in advance? Why are some goods sold at auction and others at pre-announced prices? Why do boxes at the football sell out before the standard seats do? Why are bank buildings fancier than supermarkets? Why do corporations confer huge pensions on failed executives? Why don't firms require workers to buy their jobs? Landsburg explains why the obvious answers are wrong, reveals better answers, and illuminates the fundamental laws of human behavior along the way. This is a book of surprises: a guided tour of the familiar, filtered through a decidedly unfamiliar lens. This is economics for the sheer intellectual joy of it. |
| a good economic theory: A History of Economic Theory Jürg Niehans, 1994-10-01 This book offers a comprehensive account of the builders and building blocks of modern mainstream economics. Jrg Niehans shows how the analytical tools used by economists have evolved from the eighteenth century to the present, and he describes economic theory in the model-building era, from Pigou and Keynes to Rational Expectations. |
| a good economic theory: The Calculus of Consent James M. Buchanan, Gordon Tullock, 1965 A scientific study of the political and economic factors influencing democratic decision making |
| a good economic theory: Naked Economics: Undressing the Dismal Science Charles Wheelan, 2003-09-17 Seeks to provide an engaging and comprehensive primer to economics that explains key concepts without technical jargon and using common-sense examples. |
| a good economic theory: Economics for Mathematicians John William Scott Cassels, 1981-12-10 This is the expanded notes of a course intended to introduce students specializing in mathematics to some of the central ideas of traditional economics. The book should be readily accessible to anyone with some training in university mathematics; more advanced mathematical tools are explained in the appendices. Thus this text could be used for undergraduate mathematics courses or as supplementary reading for students of mathematical economics. |
| a good economic theory: Contributions to Modern Economics Joan Robinson, 2014-05-10 Contributions to Modern Economics includes contributions to two great intellectual upheavals in economic theory: the Keynesian Revolution and the revival of the classical theory of profits led by Piero Sraffa. The formation of prices in capitalist and socialist economies and of international trade is also discussed. The evolution of these ideas is linked to the personal and historical events that influenced them. Comprised of 24 chapters, this book begins by describing the second crisis of economic theory, which is related to the first crisis — the great slump of the 1930s. The reader is then introduced to the theory of money and the analysis of output; obstacles to full employment; and the concept of hoarding. Subsequent chapters explore capital, profits, and prices, with emphasis on the theory of capital, imperfect competition, and the theory of value. International trade, capitalism, and beggar-my-neighbor remedies for unemployment are also examined. This monograph should be of interest to economists. |
| a good economic theory: Economic Policy Ludwig Von Mises, 2006-03 |
| a good economic theory: The Economics of Globally Shared and Public Goods S. Niggol Seo, 2020-07-02 The Economics of Globally Shared and Public Goods responds to an urgent need to consolidate and refine the economic theories and explanations pertinent to globally shared resources. Making a clear distinction between theories and empirical models, it elucidates the problem of global public goods while incorporating insights from behavioral economics. Its comprehensive and technical review of existing theoretical models and their empirical results illuminate those models in practical applications. Relevant for economists and others working on challenges of globally shared goods such as climate change and global catastrophes, The Economics of Globally Shared and Public Goods provides a path toward greater co-operation and shared successes. - Offers an encompassing description of the economics of global public goods - Provides an ensemble of empirical analyses of behavioral complexities - Defines a set of optimality conditions for a solution applicable to many problems |
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Good and safe exploits to use and not what to use
Jun 20, 2020 · Here are safe exploits to use and not what to use To use: Synapse X (strong executor but paid $20) Krnl (free executor, only accessed via their discord not off of …
List of Safe Rom Sites (Please Stop Asking) : r/Roms - Reddit
Most of the people who post help posts on here can't find their ass with both hands in the dark. The sub has become famous for it, as most people who are brought here are brought here by …
Wallpaper (Computer Desktops/Backgrounds) - Reddit
Welcome to Wallpaper! An excellent place to find every type of wallpaper possible. This collaboration of over 1,750,000 users contributing their unique finds makes /r/wallpaper one of …
r/GoodAssSub - Reddit
Participate in the subreddit in good faith. This includes: •No E-Drama •No attacking other users •No promotion of other random Ye subreddits •No participating on the subreddit just to hate on …
Any good and safe Youtube To MP3 apps/websites? : r/software
66 votes, 92 comments. true. I use 4k video downloader. Used the free version for years but the paid option (one time fee) let's you download playlists.
Good free video editor apps/sites (Windows - NO WATERMARK)
Nov 20, 2021 · I can't recommend OpenShot, it destroyed the output framerate for me. ShotCut is better alternative, and looking for simple solutions, "ShutterEncoder" or "lossless-cut" allow …
What are ideal & dangerous temps for you CPU and GPU? : …
Anything under 80C is ideal/good. 80-90C is okay. And 90+, you need to check case/fan set up. New GPUs are rated to reach high temperatures now and even if it gets that high it'll throttle to …
How good is Opera GX? : r/browsers - Reddit
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I’ve reviewed 1,000+ good (and bad) resumes. Here are my
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r/FortniteXPMaps - Reddit
Since the last update, a lot of people have mentioned not getting XP from Lego AFK. While testing it this morning, no matter what I did, it seemed to only be giving 30,000 XP and then would not …
