What is Behavioral Economics?

Behavioral economics uses evidence from psychology and other disciplines to create models of limits on rationality, willpower and self-interest, and explore their implications in economic aggregates. This paper reviews the basic themes of behavioral economics: Sensitivity of revealed preferences to descriptions of goods and procedures; generalizations of models of choice over risk, ambiguity, and time; … Continue reading What is Behavioral Economics?

Effect of Rent Control

Steadily rising housing rents in many of the US’s large, productive cities have reignited the discussion whether to expand or enact rent control provisions. Under pressure to fight rising rents, state lawmakers in Illinois, Oregon, and California are considering repealing laws that limit cities’ abilities to pass or expand rent control. While rules and regulations … Continue reading Effect of Rent Control

Poverty from the Behavioral Economics Perspectives

Standard theorizing about poverty falls into two camps. Social scientists regard the behaviors of the economically disadvantaged either as calculated adaptations to prevailing circumstances or as emanating from a unique “culture of poverty,” rife with deviant values. The first camp presumes that people are highly rational, that they hold coherent and justified beliefs and pursue … Continue reading Poverty from the Behavioral Economics Perspectives

‘Dollar a Day’ Forced Labor Class Action Lawsuit Filed Against CoreCivic

Project South, Apr. 17, 2018 - "A private prison company under contract with Stewart County to house individual’s detained by U.S. Immigration and Customs Enforcement (ICE) is forcing detained immigrants at Stewart Detention Center in Lumpkin, Georgia to work for as little as $1 a day to clean, cook, and maintain the detention center in a … Continue reading ‘Dollar a Day’ Forced Labor Class Action Lawsuit Filed Against CoreCivic

The “American Dream” is a Fallacy

Americans continue to kid themselves that if you work hard you can climb the ladder. But the perception and reality are moving farther apart. Economists at Harvard University recently published research on actual and perceived economic mobility in the United States and four European countries. They found an American public in denial. The data show that Americans … Continue reading The “American Dream” is a Fallacy