People are prone to compare their assets with other persons of their social-reference group, especially above their rank (Boyce et al 2010). This leads to an important implication in explaining happiness: It´s not your income that makes you happy, it´s all about your income rank. An increasing income lacks in giving a person more happiness … Continue reading Does social media negatively affect perceived relative living conditions?
Corruption has been one of the high priority that international organizations such as the IMF, World Bank, the UN and OECD have become increasingly interested in the fight against. More economists are involved in studying the effects of corruption on economic growth as it is perceived as a detrimental to economy and sustainable development path. … Continue reading Does FDI trigger or hinder corruption?
fA Critical Review of Food-Based Poverty Traps There’s an interesting tension between libertarianism and paternalism when we talk about the lives of the poor. One the one hand, certain analyses of poverty take a rather patronizing view of the poor. These approaches often feature some exogenously-defined “rationality” criteria which are supposed to advance the lives … Continue reading Poor Choices or Poor Analysis?
Our preferences and cognition, our entire behavior is characterized by the social and cultural structures we have been exposed to. The mental models constructed on the basis of these experiences work like lenses through which we perceive the world. It seems only intuitive that societies with shared mental models, which have been influenced by historical … Continue reading Assembling the pieces: a puzzle of slave dealing, mistrust and corruption
One of the most important tools in development economics are field labs – economic laboratory experiments conducted in the field. In order to explain different aspects of poverty, growth and human development, assumptions about the preferences and strategic behavior of individual economic agents are essential. However, the continuously growing literature on economic experiments in developing … Continue reading Economic field experiments in developing countries – Topics, methods and implications
Economic theories have addressed hundreds of topics and rendered several findings over the last decades. One could argue that the discipline step by step take up almost all parts of human live which might be not suitable to its original frame. Regardless this inner discussion on economic imperialism, I wondered to which extent does patriotism … Continue reading The Economics of Patriotism
About 45% of our everyday actions are behaviors that are not actively reflected upon. To alter sustainable behavior is where nudges can come into play. Dealing with this topic is motivated by a personal interest of the author of this blog in sustainable solutions. Nudges were first introduced into economic psychology by Thaler and Sunstein … Continue reading How can nudges support sustainable behavior and what might be effective in this context?