A guide to the study of how and why you really make financial decisions While classical economics is based on the notion that people act with rational self- interest, many key money decisions like splurging on an expensive watch can seem far from rational.
Foundations and Developments
The book provides an in-depth exploration of behavioral economics, addressing key topics such as the nature of the Economic Agent, decision-making processes, and the implications of experiments. It delves into various areas including labor and household dynamics, ethical investment, taxation, and even life-and-death decisions. Each section offers critical insights into how behavioral factors influence economic outcomes, making it a valuable resource for understanding the complexities of human behavior in economic contexts.
Choices, Constraints and Opportunities in the Market Economy
High wage economies enhance productivity for firms and the overall economy, proving competitive in a globalized market. The book argues against fears that rising wages and social benefits will lead to a labor supply shortage, suggesting these concerns stem from flawed economic reasoning. It highlights the benefits of high wages in fostering a thriving economic landscape.
Quantitative Adventures into Canadas Past
Exploring the theme of natural resource abundance, the book argues that such wealth can be an advantage rather than a curse, contingent on effective institutions and decision-making processes. Using Canada as a case study, it examines the country's successful export-oriented economy from the late seventeenth to the early twentieth century, highlighting its historical industries. Additionally, it addresses gender inequality and labor dynamics, supported by newly constructed data sets that enhance economic analysis and historical understanding.
Challenging conventional economic wisdom, this book critiques widely accepted beliefs that low wages foster growth, convergence in output is inevitable, and that minimum wage laws harm the economy. It questions the efficiency of larger firms compared to smaller ones and dismisses the significance of culture in economic development. The author contends that these notions stem from unrealistic assumptions about economic behavior, prompting a reevaluation of the relationship between wages, market dynamics, and social factors in shaping economic outcomes.