Managerial economics

About: Managerial economics is a research topic. Over the lifetime, 1524 publications have been published within this topic receiving 83965 citations.

The Failures of Economics and the Emerging New Economics

Abstract: The current economic and financial crisis has exposed several weaknesses in economics that emanate from oversimplification of reality, the role of ideology, and the failure to consider culture and governance matters. In addition, tackling poverty and inequality in economics is highly problematic and it has arguably also been a failure. Other areas, including fundamental assumptions regarding rational decision-making and the lack of a robust linkage between the micro and the macro, leave much to be desired as well. And these ‘fault lines’ have had an impact on the depth and quality of economics. This paper draws from field research and other primary sources, and engages in a critical review and analysis of the background and certain aspects of the status quo of economics, with special reference to macroeconomics, development economics, and other areas. Fresh ideas and alternative paradigms suggest an emerging new economics to address the fault lines and to grow the discipline.

On Economics as a World View

Abstract: Stigler (1965) argued that economists can provide policy-makers with sound policy recommendations, so that the efficiency of resource utilization can be improved. But a more fundamental way to improve the efficiency of resource utilization is to enable the general public to think like an economist . To achieve this aim, however, the way of thinking as implied by economics must be identified first; this paper discusses the particular perspective of economics. The idea of a spectrum is used to discuss various ways of defining economics. Then, it is argued that the concept of cost and a benchmark constitute a basic perspective of economics, or the economic world view. Finally, practical steps to relate this world view to the general public are suggested. JEL classification: All, A20, B20, B41.

The Future of Economics

Abstract: This public lecture discusses the criticisms of rational choice theory that have emerged within the recent literature on experimental and behavioral economics, and speculates about the possible impact on the discipline of economics.

The use of game theory in regional economics: A quantitative retrospective

Abstract: One of the most powerful tools within social science in general and economics in particular is game theory. This methodology allows for the formal analysis of the interactions among economic agents and, therefore, it is particularly useful for the study of economic decisions regarding spatial issues. For this reason, a quantitative systematization of the use of this tool on regional economics research is a relevant topic in the agenda concerned with progress in regional science. In this paper we study research in regional economics and provide a quantitative retrospective of the use of game theory in this field. Our main goal is twofold. First, we intend to categorize the contributions in the use of this analytical tool – by main research subjects, by authors' affiliations, by journal, etc. – using a bibliometric approach. Second, by analysing co-authoring and using social network analysis, we want to test the existence of structures of knowledge upon which distinct co-authorship emerges. The results of this research provide a framework for analysing the potential use of game theory in regional economics, suggesting new future research directions.

Inward FDI in Germany and its policy context

Abstract: With a stable economic and political system, open capital markets, the largest domestic market in Europe, and European Union (EU) membership, Germany has attracted competitive and export-oriented multinational enterprises (MNEs) since the 1960s. In the 1990s —after German unification and the opening up of Eastern Europe— inward foreign direct investment (IFDI) grew more slowly than expected despite the increased market potential. In recent years, the German economy strengthened and the wage and cost gaps against its main competitors narrowed, contributing to higher IFDI. With the financial and economic crises, German IFDI declined considerably in 2008 but started to rise again in 2009. At the end of 2008, Germany ranked among the top four developed countries as host for IFDI. Germany's open investment regime was tightened in 2009, in reaction to the emergence of sovereign wealth funds (SWFs). Trends and developments Country-level developments The successful reintegration of Germany into the world economy after the Second World War, as well as the European unification process, stimulated IFDI in Germany. Already in the 1960s, many of the largest MNEs worldwide (like General Motors or IBM) had established affiliates in Germany. In 1990, the year of the German reunification, the consolidated primary and secondary IFDI stock amounted to US$ 111 billion. 1 Since then, it has risen six-fold, to reach US$ 666 * Thomas Jost (thomas.jost@h-ab.de) is Professor of Economics at the University of Applied Sciences Aschaffenburg. The author wishes to thank Alexandra Angress, Jörn Kleinert and Beatrix Stejskal-Passler for their helpful comments. The views expressed by the author of this Profile do not necessarily reflect opinions of Columbia University, its partners and supporters. Columbia FDI Profiles is a peer-reviewed series. 1 The German inward FDI stock figures that are used most for analysis in this article are consolidated primary and secondary direct investment stock figures. This is a very special calculation done by Deutsche Bundesbank, looking through dependent (majority foreign owned) holding companies in Germany and including their direct investment enterprises in Germany. These figures are not comparable with the figures of most other countries, taking only primary FDI into account. The primary FDI stock in Germany is much higher than the consolidated primary and secondary one, because FDI in dependent holding companies is much higher than the FDI stock in their direct investment enterprises, which replace the dependent holding companies by consolidation. The reason for this is that the holding companies receive …