Showing papers on "Managerial economics published in 2016"

Behavioral Economics: Past, Present and Future

Abstract: There has been growing interest in the field come to me known as “behavioral economics” which attempts to incorporate insights from other social sciences, especially psychology, in order to enrich the standard economic model. This interest the underlying psychology of human behavior returns economics to its earliest roots. Scholars such as Adam Smith talked about such key concepts as loss aversion, overconfidence, and self-control. Nevertheless, the modern version of behavioral economics introduced in the 1980s met with resistance by some economists, who preferred to retain the standard neo-classical model. They introduced several arguments for why psychology could safely be ignored. In this essay I show that these arguments have been rejected, both theoretically and empirically, so it is time to move on. The new approach to economics should include two different kinds of theories: normative models that characterize the optimal solution to specific problems and descriptive models that capture how humans actually behave. The latter theories will incorporate some variables I call supposedly irrelevant factors. By adding these factors such as framing or temptation we can improve the explanatory power of economic models. If everyone includes all the factors that do determine economic behavior, then the field of behavioral economics will no longer need to exist.

The Economic Approach to Personnel Research

Abstract: We compare the economic approach to research on personnel and organizational design to approaches from behavioral disciplines. Instead of a survey of the field, our emphasis is on topics which are important in organizational research outside of economics, yet have been little emphasized by economics. We contend that many of these topics hold great promise for insights from the economic approach. In some cases we sketch ways in which economists can approach these topics. We also briefly discuss empirical methods in personnel economics.

Economic science in the future

Abstract: Economics in the future should embody "the welfare economics of markets" in a dynamic, nonequilibrium, evolutionary framework. This economics will include a "return to increasing returns" as a central research program. And, relatedly, the intersection between economics and ethics will necessarily assume more significance.

How complex is agricultural economics

Abstract: Recognition that an economy is complex is not new. Frederick von Hayek, for example, made explicit that markets are complex systems in the 1960s. Contemporary proponents of complexity, movement across the sciences including economics, argue that an economy is a complex system in which economic agents (whether consumers, banks, firms or farmers) continually adjust and react to market behaviour of others. A major claim by these 2 proponents is that economics is going through its most profound change in over a hundred years. A further claim is that the neoclassical era in economics, upon which many agricultural economics principles are grounded, is being replaced by the complexity era. Indeed, is there some evidence that concepts such as agent-based modelling path dependency, self-organisation and network analysis used by the complexity movement are making inroads into agricultural economics research? This paper through a survey of literature of leading agricultural economic journals and the online repository, AgEcon Search, seeks to understand the degree that concepts from the complexity movement are emerging in agricultural economics research. Are they merely an adjunct to standard economic modelling or does it represent a more profound change in the way of analysing an economy?

The economics of the internet: an overview

Abstract: In the Internet economy many of the theoretical assumptions and historical observations upon which economics rests need to be reexamined. Economics built a very successful research program by focusing on the choices and behavior of rational individual decision-makers under conditions of scarcity. In this highly stylized framework, eventually increasing incremental costs, decreasing marginal utility and resource constraints result in negative feedback that moves economic processes toward equilibrium states. The rigorous analysis of these equilibria at the micro and macro level was a major achievement of economics. In an economy built around digital technology some of these conditions change fundamentally. Scale economies, interdependencies, and abundance are pervasive and call for analytical concepts that augment the traditional approaches.

Network Analysis for Economics and Management Studies

Abstract: In this chapter it is underlined that, though economics has systematically adopted network analysis much later than sociology, the development of network economics during last 15 years has been massive, alongside three main research streams: strategic formation network modeling, (mostly descriptive) analysis of real economic networks, and optimization methods of economic networks. It is argued that the main reason for that delay is that the most essential network properties, like externalities, endogenous change processes, and nonlinear propagation processes, definitely prevent the possibility to build a general competitive equilibrium theory. For this paradigm has dominated economics in the last century, this incompatibility operated as a hard brake and made network analysis an inappropriate epistemology for mainstream economics. Further, being intrinsically structuralist, social network analysis was also antithetic to radical methodological individualism, which was economics dominant methodology. Conversely, though culturally and scientifically influenced by economists in some fields, management scholars were free from “neoclassical economics chains”, and therefore more ready and open to adopt the methodology and epistemology of social network analysis. Mostly descriptive until 15 years ago, some methods of investigation through statistical network modeling offer the possibility to develop network formation and network dynamics models, which stay between the much more powerful agent-based simulation models and the usually descriptive methods.

Behavioral Innovation Economics

Abstract: The chapter presents an overview of the emerging field of behavioral innovation economics, which is the application of behavioral economic theory and principles to the subject matter of innovation economics (also known as Schumpeterian or evolutionary economics). A behavioral innovation economics addresses such basic questions as why innovation is so hard to organize, and why public policy, while often advancing platitudes in its support, often constrains more than it supports. It focuses on why organizations, particularly large organizations, find it so hard to be innovative. It focuses on the question of the reasons why consumers adopt novelty, and the seemingly crucial importance of social context in those decisions.

Ten principles of economics

Abstract: Economics is basically the study of using the scarce resources wisely. The behavior of economy reflects the behavior of individuals and so of the society who make the economy. Households and society have much in common. They have to make many decisions. Both the household and society have to allocate their scarce resources among various purposes. Scarcity, various choices have to be made between alternatives. A society too cannot produce all the goods and services, people wish to have. Economics is the study of how society uses scarce resources to produce and distribute valuable commodities among the people. The essence of economics is to acknowledge the reality of scarcity of resources and then to organize the society to achieve the most efficient use of resources. Economics is a very important discipline. Unless one understands the basic principles of economics, it would not be possible to design relevant economic policies. If the economic policies are wrong, people can be in serious trouble. It is then quite important that we understand the basic principles of economics very well, in order to be able to design proper economic policy.

Business Intelligence for Decision Making in Economics

Abstract: The aim of this research is twofold. Firstly, we aim to improve the efficiency of closed funds (a closed fund represents a fund that is developed as a financial product and is multiplied after its conception to a ratio that could reach 250:1. This depends on investor’s requirements (i.e. an initial fund that uses 20 million USD for buying its stakes, can be multiplied 250 times and reach a value, when it is sold as a financial derivative, of 5 billion USD [Bodislav, The optimal corporative model for sustainable economic growth for an emergent country 1. Bucharest: ASE Publishing, 2013). These types of financial vehicles are developed and sold by investment banks such as Goldman Sachs and JP Morgan. The preferred closed funds vehicle for selling to clients is through financial derivatives. According to the International Monetary Fund (IMF) financial derivatives are: ‘financial instruments that are linked to a specific financial instrument or indicator or commodity, and through which specific financial risks can be traded in financial markets in their own right. Transactions in financial derivatives should be treated as separate transactions rather than as integral parts of the value of underlying transactions to which they may be linked. The value of a financial derivative derives from the price of an underlying item, such as an asset or index [IMF. International Monetary Fund. Financial Derivatives. http://www.imf.org/external/np/sta/fd/, 2015]) by developing an algorithm which uses data from the US stock market. The secondary output is to use the same algorithm as a model, which is scaled to fit and solve issues regarding automated decision making at the government level. This is similar to a basic Business Intelligence (BI) solution (it follows similar procedures to the workflow of IBM Cognos), which offers a solution in identifying the most suitable path from which governments are able to make decisions. It is particularly important for a country to identify its needs and requirements related to new investments in infrastructure, healthcare and/or education. All the principles developed in this model can be scaled through their results to determine the best solution or best fit when considering global economic output as a forecasted variable.

Toward a Democratic and Political Understanding of Economics

Abstract: Economics is understood by many as an established discipline. It is about “allocation of scarce resources” and the main actors are firms, consumer/households and the state. In the present essay, an alternative definition of economics in terms of multidimensional thinking and democracy is proposed and the main actors in the economy are “political economic persons” and “political economic organizations”. It is argued that the now dominant neoclassical theory is specific not only in scientific but also in ideological terms and that the same holds for any alternative paradigm. In relation to present challenges, such as climate change and biodiversity loss, neoclassical theory and the related neoliberalism, being behind the present political economic system, has not been performing well enough. While not excluding action within the scope of mainstream theory, we therefore need to extend the research and educational agenda in economics to alternative paradigms and ideological orientations. A political economics view is proposed which claims to be compatible with democracy.

Essential Statistics For Economics Business And Management

Abstract: Thank you for reading essential statistics for economics business and management. Maybe you have knowledge that, people have look hundreds times for their favorite novels like this essential statistics for economics business and management, but end up in malicious downloads. Rather than enjoying a good book with a cup of tea in the afternoon, instead they are facing with some malicious virus inside their laptop.

Forecasting and monetary policy analysis: new empirical evidence

Abstract: OF THE DISSERTATION Forecasting and Monetary Policy Analysis. New Empirical Evidence

Environmental Economics Theory Application And Policy

Abstract: Thank you for downloading environmental economics theory application and policy. Maybe you have knowledge that, people have look numerous times for their favorite readings like this environmental economics theory application and policy, but end up in malicious downloads. Rather than enjoying a good book with a cup of coffee in the afternoon, instead they cope with some malicious virus inside their computer.

Role and Responsibilities of Managerial Economists: Empowering Business through Methodology and Strategy

Abstract: An appreciation of economics and the general workings of the economy have become increasingly necessary to make sense of government policy-making, the conduct of businesses and the enormous changes in economic systems, which are occurring throughout the world With the increasing importance of behavioural economics, for business and management, especially with the recent global downturn, managers need to be effectively equipped with economic theories, tools and techniques Their expertise, efficiency and experience, then will enable them to manage any crisis, adequately Both theoretically and practically, it is a bridge-building exercise between business and economics The excellence that managers attain will be rewarding to them and the business environment This paper highlights how modern manager ought to be a strategist and an economist in terms of her role, responsibilities and qualitiesIt analyses the emerging parametric convergence between economics and business It calls forincentivising smart people to engage more in productive rather than unproductive entrepreneurship The intent is to make way for empowering business, with both firm and market advantages

Game Theory and Quantitative Economics

Abstract: In its early days, game theory was considered as a part of mathematical economics and operational research in mathematics. Its application sphere expands constantly and it has currently been applied to various fields of natural sciences and human and social sciences. In recent years, because of its sophisticated and innovative studies on human behaviors and the development of new theoretical branches of modern economics such as behavioral economics and experimental economics, game theory has made remarkable breakthroughs and has been widely used in China. The successful application of game theory which has brought significant results reflects the development of Chinese quantitative economics and reveals some new trends in it such as the reform of methodology caused by the refocalization of contemporary economics on behavior.

Federal Minimum Wage, Tax-Transfer Earnings Supplements, and Poverty, 2016 Update: In Brief [April 8, 2016]

Abstract: Management and economics/Financial management; Management and economics/Human resource management; Management and economics/Research and analysis

Microeconomic Natural Law, Portfolio Principle and Economics Textbooks

Abstract: This study explains that, after combining the microeconomic natural law with the portfolio principle and a few bases in general economic analyses, the capability of managing all fundamental challenges in business operation, financing, and marketing can be directly established in economics textbooks. It is impossible to cover all critical topics; however, restoring economics as the foundation of all major disciplines for economic management can still be practically achieved. More crucially, by endogenizing the economic environment, such new economic textbooks can guide the chaotic economic world back to its normal conditions. The illustrated methodology is still far from perfect because the real synergistic effects cannot be quantitatively studied, and natural and social environments are still treated as exogenous factors in the analytical framework. Clearly, economics still has numerous challenges to overcome.

The Applications of Game Theory and Its Contributions to Economics

Abstract: In just a few decade development processes, game theory, with its innovative ideas, strong economic analysis tools, and complete and rigorous system, has brought new vigor to the economics, and managed to reinterpret some traditional economic theory more reasonably, and let economists have the ability to explore some new areas. This paper summarizes and analyses the application of game theory in the socio-economic analysis and its contribution to economics. The assortment and study of economic game theory not only is beneficial to further understand the essence and the process of the development of this field, but also provide ideas and reference for the future development of it.

Utilization of Selected Methods of Managerial Economics in Aviation Companies

Abstract: The article is focused on the areas of management in aviation companies by way of applying selected methods of managerial economics, applicable under the constantly changing conditions entailing high level of risks Attention is paid separately to the characterizing the external environment, applying the systems-based views, balance sheet analysis and controlling The core of the publication is on selected methods representing the pillars of company economics and can be adapted by managers with purely technical background

Economic Theory and Statistical Learning

Abstract: This dissertation presents three independent essays in microeconomic theory. Chapter 1 suggests an alternative to the common prior assumption, in which agents form beliefs by learning from data, possibly interpreting the data in different ways. In the limit as agents observe increasing quantities of data, the model returns strict solutions of a limiting complete information game, but predictions may diverge substantially for small quantities of data. Chapter 2 (with Jon Kleinberg and Sendhil Mullainathan) proposes use of machine learning algorithms to construct benchmarks for “achievable" predictive accuracy. The paper illustrates this approach for the problem of predicting human-generated random sequences. We find that leading models explain approximately 10-15% of predictable variation in the problem. Chapter 3 considers the problem of how to interpret inconsistent choice data, when the observed departures from the standard model (perfect maximization of a single preference) may emerge either from context-dependencies in preference or from stochastic choice error. I show that if preferences are “simple" in the sense that they consist only of a small number of context-dependencies, then the analyst can use a proposed optimization problem to recover the true number of underlying context-dependent preferences.