Found 4 article(s) for author 'Economic Theory'

Populism and the Economics of Globalization

Populism and the Economics of Globalization. Dani Rodrik, June 2017, Paper, “Populism may seem like it has come out of nowhere, but it has been on the rise for a while. I argue that economic history and economic theory both provide ample grounds for anticipating that advanced stages of economic globalization would produce a political backlash. While the backlash may have been predictable, the specific form it took was less so. I distinguish between left-wing and right-wing variants of populism, which differ with respect to the societal cleavages that populist politicians highlight. The first has been predominant in Latin America, and the second in Europe. I argue that these different reactions are related to the relative salience of different types of globalization shocks.Link

Tags: , , , , , ,

What Happened When Homo Economicus Entered Business School

What Happened When Homo Economicus Entered Business School. Rakesh Khurana, July 14, 2016, Paper, “Since the mid-1970’s neoclassical economic theory has dominated business school thinking and teaching in dealing with business ethics. Neoclassical economic theory employs an incorrect model of human behavior that treats managers as selfish maximizers of personal wealth and power. This model, often referred to as Homo economicus, implies that a firm’s board of directors can best further stockholders’ interests by (a) selecting managerial personnel who are focussed virtually exclusively on personal financial gain, and (b) inducing them to act as agents of the stockholders by devising incentives that minimize the difference between the financial returns to stockholders and the firm’s leading managers.Link

Tags: , , , ,

Choosing Not to Choose

Choosing Not to Choose. Cass Sunstein, October 2014, Article. “Choice can be an extraordinary benefit or an immense burden. In some contexts, people choose not to choose, or would do so if they were asked. In part because of limitations of “bandwidth,” and in part because of awareness of their own lack of information and potential biases, people sometimes want other people to choose for them. For example, many people prefer not to make choices about their health or retirement plans; they want to delegate those choices to a private or public institution that they trust…” Link

Tags: , , , , ,

The choice of institutions

The choice of institutions. Alberto Alesina, August 2007, Paper. “The ”classical” economists, Adam Smith, David Ricardo and Karl Marx clearly thought that in socio political forces were important determinants of economic development and change. On the contrary the “neoclassical” school starting with Jevons and Walras developed their economic theories in an institution free environment. Institution free economic theory has been the dominant school of thought at least until the 1990s. There were however a few exceptions…” Link

Tags: , ,