Actually, if one has spent any time looking at markets, they will soon realize that economic decision making is not merely guided by classical theory. Congratulations to Dr. Thaler, and must take a look at his work, but I would also recommend Elinor Ostrom's work. Besides her keen insights into economic behavior, she also remains the only woman to date to have received the Nobel in Economics. That might be worth looking into. I can only remember one female professor of economics in my undergraduate and graduate studies. Why is that?
Dale
From: "Anuj Jain ajain@stfx.ca [MicrofinancePractice]" <MicrofinancePractice@yahoogroups.com>
To: "MicrofinancePractice (MicrofinancePractice@yahoogroups.com)" <MicrofinancePractice@yahoogroups.com>
Sent: Wednesday, 11 October 2017, 10:43
Subject: [MFP] Richard Thaler's behavioral economics recognized (yes, it is not new!)
Behavioural Economics!
All Economists and Bankers- step back, take a look. There are many interviews floating around right now, listen to this pod-cast, if you may….
Many of us in social economics and finance know this intuitively, for we have been in the proximity of people and communities, and seen behaviours from close quarters. But some of us have suspended our own intuitive insights, and rather believed in classical models of banking and economics.
Financial Diaries, and Portfolios of the Poor have been useful contributions in our own field, even though, I believe, we haven't used that insights enough in our collective work, and we knew about what was proposed in these books much before those work came out, through our own everyday experiences and interactions in communities.
My own sense is that –
- some of behavioural economics and insights into 'emotional economic beings' can be more generalised, and yet, others can't be – for there are massive contextual variations – cultural codes, economic realities, consumer preferences. Why many women in south Asia will continue to invest in Gold jewellery knowing well that it loses its value over time; and why in many places small farmers will not give up farming even when they continue to make losses more frequently than profits and others leave farming; why we see vast variations of different types of economic and financial behaviours in financial diary insights/ works of FSD Kenya, many others, why some prefer to become economic refugees and others don't? ….. So, what shall we generalise and what we make sure to understand in a more nuanced fashion (?)- it is a fascinating pluralistic reality, something that would keep us busy learning all our lives.
- we now know for sure (I think) that technical solutions such as micro-credit, microfinance, digital finance, enterprise development, value chain work – won't fix massive economic inequity issue we all face today; unless we look at behavioural economics at the systems level, and rebalance the powers. The challenge is massive, but articulating the problem right, is perhaps half the battle won.
It is a bit of a pity that Noble Prize as an institution legitimises some of these otherwise widely understood social behaviours; but then, hey, we will take it! So, what does it mean for us, if anything?
anuj
Anuj K. Jain
Faculty, Development Leaedrship, Inclusive Economies (Microfinance, Market Systems, Urban Economies), Partnerships
Sr. Project Specialist| COADY International Institute
St. Francis Xavier University, Antigonish, Nova Scotia, B2G 2W5| Ph: 902-872-0521
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Posted by: Dale Lampe <dlampe21@yahoo.co.uk>
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