SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS
Besides the numerous effects that the financial crisis of 2007 has produced over the entire global economy, its onset has reopened fundamental discussions on the methodology of the economic science. One of the main controversies in the literature revolves around the nature of the neoclassical homo o...
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| Format: | Article |
| Language: | English |
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Alexandru Ioan Cuza University of Iasi
2015-08-01
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| Series: | CES Working Papers |
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| Online Access: | http://ceswp.uaic.ro/articles/CESWP2015_VII2_DIA.pdf |
| _version_ | 1818288480195706880 |
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| author | Paula-Elena DIACON |
| author_facet | Paula-Elena DIACON |
| author_sort | Paula-Elena DIACON |
| collection | DOAJ |
| description | Besides the numerous effects that the financial crisis of 2007 has produced over the entire global economy, its onset has reopened fundamental discussions on the methodology of the economic science. One of the main controversies in the literature revolves around the nature of the neoclassical homo oeconomicus used in the mainstream analysis, with emphasis on the concept of rationality. Although the causes of the crisis are numerous, we propose to investigate in this paper only some aspects related to the psychological factors that contributed to the outbreak of this situation. The analysis is developed especially around the concept of economic rationality, arguing that the human being has a bounded rationality rather than a perfect one. Moreover, the relationship that exists between bounded rationality and the economic freedom of the individual is brought to the fore. |
| first_indexed | 2024-12-13T01:57:03Z |
| format | Article |
| id | doaj.art-d95b666753ac41d194592ed74fd78b5d |
| institution | Directory Open Access Journal |
| issn | 2067-7693 |
| language | English |
| last_indexed | 2024-12-13T01:57:03Z |
| publishDate | 2015-08-01 |
| publisher | Alexandru Ioan Cuza University of Iasi |
| record_format | Article |
| series | CES Working Papers |
| spelling | doaj.art-d95b666753ac41d194592ed74fd78b5d2022-12-22T00:03:22ZengAlexandru Ioan Cuza University of IasiCES Working Papers2067-76932015-08-0172276287SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISISPaula-Elena DIACON0Doctoral School of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iasi, RomaniaBesides the numerous effects that the financial crisis of 2007 has produced over the entire global economy, its onset has reopened fundamental discussions on the methodology of the economic science. One of the main controversies in the literature revolves around the nature of the neoclassical homo oeconomicus used in the mainstream analysis, with emphasis on the concept of rationality. Although the causes of the crisis are numerous, we propose to investigate in this paper only some aspects related to the psychological factors that contributed to the outbreak of this situation. The analysis is developed especially around the concept of economic rationality, arguing that the human being has a bounded rationality rather than a perfect one. Moreover, the relationship that exists between bounded rationality and the economic freedom of the individual is brought to the fore.http://ceswp.uaic.ro/articles/CESWP2015_VII2_DIA.pdffinancial crisisbounded rationalitybehavioural economicsliberalization |
| spellingShingle | Paula-Elena DIACON SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS CES Working Papers financial crisis bounded rationality behavioural economics liberalization |
| title | SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS |
| title_full | SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS |
| title_fullStr | SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS |
| title_full_unstemmed | SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS |
| title_short | SOME PSYCHOLOGICAL CAUSES OF THE FINANCIAL CRISIS |
| title_sort | some psychological causes of the financial crisis |
| topic | financial crisis bounded rationality behavioural economics liberalization |
| url | http://ceswp.uaic.ro/articles/CESWP2015_VII2_DIA.pdf |
| work_keys_str_mv | AT paulaelenadiacon somepsychologicalcausesofthefinancialcrisis |