Early this Monday, behavioral economist Richard Thaler of the University of Chicago was awarded the Nobel Prize in Economics. According to the announcement of Royal Swedish Academy of Sciences, Thaler “incorporated psychologically realistic assumptions into analyses of economic decision-making”. Put in layman’s terms, Professor Thaler won the award by studying people’s rationale for making poor choices. He is the most pioneering behavioral economist to delve closely into human psychology and understand humans as they really are. “In order to do good economics, you have to keep in mind that people are human,” said Professor Thaler after winning the prize. In fact, his decade-long observation of human behavior led him to conclude that humans are rationally unpredictable. This remarkable discovery directly challenged the fundamental assumption of neoclassical economics -- that all humans are always rational actors. It all started in 1976, when Richard Thaler attended an economics seminar in California. He was introduced to two little-known economic psychologists - Daniel Kahneman and Amos Tversky - who according to Thaler himself “changed his life”. Kahneman and Tversky had written a thesis on irrational human behavior. For instance, a man pays 1000 dollars for a tennis court membership. However, if he gets tennis elbow later on, he would still go to play even though this would violate the utility maximization rule. Instead of using these observations to rebuke the
https://issuu.com/columbiaeconreview/docs/cer_spring_2017 The Spring 2017 Issue has arrived! Click the link above to learn more about the bitcoin volatility, macroeconomic effects of corporate tax policies, and Federal Reserve regulations.
For centuries now, religious institutions that once held immense amounts of power have been fighting cultural, social, and political forces that have limited their influence on society. While religious establishments in Islam and Christianity have been remained intact, there is a force that they have been unable to stop: economic growth. The data above reveals that today less people are religiously affiliated than in the past. With a twenty-one percent decrease in religious affiliation compared to the “Greatest” generation, Millennials are departing from religion’s thousand-year-old hold. Moreover,while this data is specific to the United States, this trend can be seen across the economically developed world. A Pew Research survey found that about 135.2 million people in Europe do not identify with any religious or spiritual institution. This is a clear contrast to the Christian stronghold that Europe once was. The decrease in people’s association with particular
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The Columbia Economics Review invites teams of 1 - 4 undergraduates to participate in its fourth annual Competitive Climate environmental policy competition. Cash prizes of $600, $300 and $150 will be awarded to the 1st-, 2nd- and 3rd- place finishers respectively, thanks to the generous support of the Columbia Economics Department. The winning presentations will also be recognized by the The Earth Institute and will be featured in the Spring 2017 edition of the Columbia Economics Review and on the Columbia Economics Department website. Prompt On 16 October 2015, the U.S. Department of