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Final-Paper
Final-Paper

... more weight to negative information when presented simultaneously rather than sequentially. (Diacon & Hasseldine, 2005.II) found that presenting past information (Framing Effect) can significantly influence the investment decision and risk perception of the investment. They overweight information th ...
Working Paper No. 427 Liquidity Preference Theory Revisited—To
Working Paper No. 427 Liquidity Preference Theory Revisited—To

... primary focus in the later work on the forces that “determined the level of output and employment at any time,” that the monetary implications (or, requirements) of continuing growth in aggregate spending and economic activity were not fully spelt out. In the finance motive debate, Keynes then refer ...
NBER WORKING PAPER SERIES QUANTITATIVE MACROECONOMICS WITH HETEROGENEOUS HOUSEHOLDS Jonathan Heathcote Kjetil Storesletten
NBER WORKING PAPER SERIES QUANTITATIVE MACROECONOMICS WITH HETEROGENEOUS HOUSEHOLDS Jonathan Heathcote Kjetil Storesletten

... Relying on the assumption of complete markets is unattractive for a number of reasons. To many economists, market completeness seems implausible a priori as a literal description of the world. From an empirical standpoint, the assumption of complete markets is routinely rejected at different levels ...
RESURGENCE OF RESPONSE SEQUENCES DURING
RESURGENCE OF RESPONSE SEQUENCES DURING

... previously published work on response-sequence learning in nonhumans. In a related piece of work, Reid (1994) successively trained rats to emit three-response sequences. It was noted that retraining a new sequence proceeded faster if the last response in the threeresponse sequence was changed compar ...
Paper - Statistical Modeling, Causal Inference, and Social Science
Paper - Statistical Modeling, Causal Inference, and Social Science

... people only think they're being reasonable, and the disagreement shows that at least one of them is not. Perhaps people are misreading the evidence or infusing tangential observations. Standard Bayesian theory offers a partial solution. it defines agreement as a common relative weighting, or "subjec ...
Nobel Lecture: Uncertainty Outside and Inside Economic Models Lars Peter Hansen
Nobel Lecture: Uncertainty Outside and Inside Economic Models Lars Peter Hansen

... native models. I will initially describe the methods and outcomes from an econometrician outside the model. Stochastic discount factors are defined with respect to a probability distribution relevant to investors inside the model. Lucas and others imposed rational expectations as an equilibrium conc ...
Protection against major catastrophes: an economic
Protection against major catastrophes: an economic

... (typically either number of deaths or monetary damage as a share of GDP 2) on a range of macroeconomic indicators. Since both economic development and vulnerability towards large-scale threats are linked to geography3, heterogeneity between countries needs to be controlled for, commonly by means of ...
NBER WORKING PAPER SERIES RATIONAL ASSET PRICES George M. Constantinides 8826
NBER WORKING PAPER SERIES RATIONAL ASSET PRICES George M. Constantinides 8826

... level, we study the short-term risk-free rate, the term premium of long-term bonds over the risk-free rate, and the aggregate equity premium of the stock market over the risk-free rate. At the micro level, we study the premium of individual stock returns and of classes of stocks, such as the small-c ...
FILLING THE GAPS: SKINNER ON THE ROLE OF
FILLING THE GAPS: SKINNER ON THE ROLE OF

... What if the second link is actually physiological? What if the “state of thirst” is described accurately as a certain physiological process? In that case, according to Skinner, we could associate different ways of raising the probability of drinking behavior (deprivation of water, ingestion of salt, ...
Modeling Judgment and Decision Making Process Using System
Modeling Judgment and Decision Making Process Using System

... Corresponding author ...
Financial Services Technology Trends: Global Update
Financial Services Technology Trends: Global Update

... as IT organizations have failed to enact agile IT economics. The pressure is on to cut IT. 2. In 2008, the U.S. Fortune 500 for example will have perhaps $9.4T of Operating Expense and $511B of Tech Expense. Operating Expense dwarfs the cost of IT. 3. The single biggest opportunity for organizations ...
(A) – Behavior
(A) – Behavior

... – Research-based, technologically consistent method for changing behavior that has been derived from one or more basic principles of behavior • Sufficient generality across subjects, settings, and or behaviors to warrant its codification & dissemination ...
Tax Policy and Aggregate Demand Management under Catching Up
Tax Policy and Aggregate Demand Management under Catching Up

... externality implied by the “catching-up” formulation seriously, and investigate its policy implications. The externality allows room for beneficial government intervention: the optimal tax policy would induce agents in the competitive equilibrium to behave in a first-best manner, which is given by t ...
The Trouble with Regulatory Precedent
The Trouble with Regulatory Precedent

... or requirement for the strict application of past decisions in current decision-making processes – is sometimes heard. At one level this might simply be interpreted as a reasonable desire for a degree of certainty in the application of regulatory practice and principles. In the extreme, or if applie ...
First Pages - Yale Economics
First Pages - Yale Economics

... were not the only people who could not read the fine print, however, for they were joined by banks, hedge-fund managers, bond-rating firms, and thousands of investors who bought assets that they did not understand. Behavioral economics joined the mainstream in 2001 and 2002 when Nobel Prizes were aw ...
Classical Conditioning
Classical Conditioning

... – Unit subsections hyperlinks: Immediately after the unit title and module title slide, a page can be found listing all of the unit’s subsections. While in slide show mode, clicking on any of these hyperlinks will take the user directly to the beginning of that subsection. – Bold print term hyperlin ...
The Role of Cognition in Classical and Operant Conditioning
The Role of Cognition in Classical and Operant Conditioning

... Brewer (1974) provocatively titled his review of the conditioning literature, There is No Convincing Evidence for Operant or Classical Conditioning in Adult Humans. Contemporary conditioning theorists regard instrumental and classical conditioning as procedures that lead to behavior change (see Boll ...
learning and behaviour - University of Calicut
learning and behaviour - University of Calicut

... reduction or need satisfaction plays a much more important role in behavior than in other frameworks (i.e., connectionism, operant conditioning). Hull's theoretical framework consisted of many postulates stated in mathematical form; They include: (1) organisms possess a hierarchy of needs which are ...
Bounded Rationality and the Emergence of
Bounded Rationality and the Emergence of

... the Second World War, the axiomatic method gained a permanent foothold in economic theory through general equilibrium analysis and social choice theory in the 1950s.6 One interpretation of these developments (hopefully not a too naive one), is that the sanctity or unassailability of the rationality- ...
Abstract Edward Chamberlin, who initiated classroom
Abstract Edward Chamberlin, who initiated classroom

... poorly in explaining the outcomes of real markets. Vernon Smith altered the design of Chamberlin’s experiment so as to increase the amount of price information available to traders and in classroom experiments with this design found that trading outcomes were close to those predicted by competitive ...
Handout 1
Handout 1

... and rats to execute long chains of odd responses such as wheeling themselves around in toy carts. In some cases, of course, unusual behavior can be attributed to great height or strength or other unusual physical characteristics that presumably reflect a special genetic endowment. We may marvel at b ...
CENTRAL TEXAS COLLEGE
CENTRAL TEXAS COLLEGE

... These threads are used to formulate content, connect one course of study to another, and provide a structure for evaluation of basic professional skills. The Secretary’s Commission of Achieving Necessary Skills (SCANS), U.S. Department of Labor, was formed “to encourage a high-performance economy ch ...
HOW TO EVALUATE THE YIELD CURVE IN A TRANSITION ECONOMY
HOW TO EVALUATE THE YIELD CURVE IN A TRANSITION ECONOMY

... other forms of credit or in securities issue. At this moment it would be hard to say that treasury notes have such role in Croatia, it can however be stated that the interest rates on treasury notes of the Croatian National Bank, or treasury notes of the Ministry of Finance adequately reflect the va ...
Do Firms` Intrinsically Determined Enterprise Values Corroborate
Do Firms` Intrinsically Determined Enterprise Values Corroborate

... investment opportunities arising from the divergence of a security’s intrinsic value from its purported market value. An observation of the above phenomenon would propel a fundamental analyst to seize the opportunity by devising a suitable investment opportunity. In this paper, we seek to examine th ...
Utility Maximization
Utility Maximization

... commodities a household can purchase at a particular time Consumption bundles on budget line represent all the bundles where household spends all of its income purchasing the two commodities Bundles within shaded area but not on budget line represent bundles household can purchase and have some rema ...
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Behavioral economics

Behavioral economics and the related field, behavioral finance, study the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and the resource allocation. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory; in so doing, these behavioral models cover a range of concepts, methods, and fields. Behavioral economics is sometimes discussed as an alternative to neoclassical economics.The study of behavioral economics includes how market decisions are made and the mechanisms that drive public choice. The use of ""Behavioral economics"" in U.S. scholarly papers has increased in the past few years as a recent study shows.There are three prevalent themes in behavioral finances: Heuristics: People often make decisions based on approximate rules of thumb and not strict logic. Framing: The collection of anecdotes and stereotypes that make up the mental emotional filters individuals rely on to understand and respond to events. Market inefficiencies: These include mis-pricings and non-rational decision making.
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