Does social media negatively affect perceived relative living conditions?

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?

Poor Choices or Poor Analysis?

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?

Economic field experiments in developing countries – Topics, methods and implications

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

How can nudges support sustainable behavior and what might be effective in this context?

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?