, Behavioral Economics
Hamid Reza Izadi
Abstract
The utility function and consumption behavior within a society wield profound influence over both household conduct and broader macroeconomic dynamics, thereby exerting a pivotal role in fostering economic growth and prosperity. Consequently, the examination and analysis of household consumption behavior ...
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The utility function and consumption behavior within a society wield profound influence over both household conduct and broader macroeconomic dynamics, thereby exerting a pivotal role in fostering economic growth and prosperity. Consequently, the examination and analysis of household consumption behavior stand as a cornerstone in economic inquiry and policy formulation. This study employs a Dynamic Stochastic General Equilibrium (DSGE) model to emulate, scrutinize, and elucidate the intricacies of household macroeconomic variables, particularly delving into the repercussions of economic perturbations while considering shifts in household budget constraints. Utilizing statistical data spanning the period from 1977 to 2020, this research introduces three distinct models to underscore the gravity of the subject matter. The empirical findings from our investigation reveal an intriguing outcome: when subjected to alterations in the utility function governing consumption behavior, all three models exhibited remarkably similar responses to the ensuing shock. Notably, the second model demonstrated the least volatility in consumption fluctuations, concurrently displaying the highest degree of serial correlation with the consumption variable. Conversely, the third model displayed the most pronounced interplay between production and consumption variables, as evidenced by our comparative analysis of consumption variable changes across the trio of models proffered herein. This study delves into the intricate nexus of utility functions and household consumption behavior, offering invaluable insights into the macroeconomic underpinnings that shape our societies.
, Behavioral Economics
Saeid Tajdini; Mohammad Qezelbash; Mohsen Mehrara; Majid Lotfi Ghahroud; Mohammad Farajnezhad
Abstract
This paper introduces an innovative model of Central Bank Digital Currency (CBDC), offering a novel perspective on its design and functionalities. It presents an innovative approach to digital currency design, introducing "Export Crypto" as a novel cryptocurrency that diverges from conventional Central ...
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This paper introduces an innovative model of Central Bank Digital Currency (CBDC), offering a novel perspective on its design and functionalities. It presents an innovative approach to digital currency design, introducing "Export Crypto" as a novel cryptocurrency that diverges from conventional Central Bank Digital Currencies (CBDCs) by anchoring its value not to fiat currencies but to intrinsic economic factors and global trade dynamics. In contrast to traditional CBDCs, our model relies on the principles of purchasing power parity (PPP) to establish a more robust and transparent link between the cryptocurrency's value and real economic activities. The core parameters for assessing the value of Export Crypto revolve around equitable trade balances among nations and their respective export volumes. This approach fundamentally deviates from the conventional practice of pegging digital currencies to a country's fiat currency. Our research findings underscore that a cryptocurrency rooted in economic fundamentals can offer a more effective tool for managing the money supply, particularly in regions where traditional CBDCs may not be optimally suited. Furthermore, Export Crypto's design has the potential to foster fair-trade practices and encourage sustainable economic growth by aligning its worth with a nation's economic prowess and its trade interactions on the global stage. This groundbreaking approach to central bank digital currency opens new avenues for enhancing economic stability and promoting equitable international trade relationships.
, Behavioral Economics
Raheleh Dabiri; Mohammad Vaez Barzani; Saeed Samadi
Abstract
Decision-making on financing methods is one of the most important decisions of managers that can be affected by their behavioral biases. Behavioral biases can cause managers to make irrational decisions and select the optimal financing method with difficulty. Recognizing and evaluating biases is an important ...
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Decision-making on financing methods is one of the most important decisions of managers that can be affected by their behavioral biases. Behavioral biases can cause managers to make irrational decisions and select the optimal financing method with difficulty. Recognizing and evaluating biases is an important step to control them and improve decision making. Given the importance of this issue, the present study has analyzed the pathology of evaluation methods of behavioral biases, specifically in research on financing methods. In this study, for the first time, research onion is used to review studies on evaluation of behavioral biases by research onion. In order to select the articles, related keywords such as behavioral finance, evaluation of behavioral biases, and financing methods were searched in reliable databases and articles related to the research topic were collected. More than 200 articles have been studied and 33 related articles have been selected to examine the methods of evaluating behavioral biases. The study results showed the low variety of statistical analysis methods for evaluating behavioral biases in financing. The application of research onion shows that the methodology of these studies was mainly based on the philosophy of positivism, practical orientation, and comparative approach. Also, it was mainly conducted by the quantitative research and survey strategy, and the data was collected by the library documents.
