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Human Psychology and Economic Fluctuations A New Basic Theory of Human Economics

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ISBN-10: 0230004822

ISBN-13: 9780230004825

Edition: 2006

Authors: Hideaki Tamura

List price: $130.00
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Description:

The human factor has received scant attention in modern Economics, however this volume redresses the balance by incorporating human psychology into economic analysis. This book constructs a new basic structure model of economic circulation based on a new flow-like concept of utility (diminishing utility) and analyzes the direct relationship between human psychology and economic fluctuation, while expanding it into a consistent explanation of the generation and the collapse of financial bubbles.
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Book details

List price: $130.00
Copyright year: 2006
Publisher: Palgrave Macmillan Limited
Publication date: 6/6/2006
Binding: Hardcover
Pages: 175
Size: 5.50" wide x 8.50" long x 0.56" tall
Weight: 0.880

List of Tables
List of Figures
Preface
Introduction
The Human Income-Expenditure Balance
The Human Income-Expenditure Balance in a Non-Monetary (Robinson Crusoe) Economy
Framework of Analysis
Diminishing Utility and Demand for Consumption Goods
Allocation of Time and the Supply of Consumption Goods
The Human Income-Expenditure Balance (Basic Human Accounting)
The Emergence of Tools, Deferred Consumption, and Basic Human Accounting
Pure Investment and Expansion of Demand and Production
The Human Income-Expenditure Balance in a Monetary Economy (a Household/Firm Model)
The Role of Money in an Economy with Households and Firms
The Income-Expenditure Balance for Households and Firms Where Households Own the Stock of Consumption Goods
The Income-Expenditure Balance for Households and Firms Where Some Consumption Goods Are Diverted for "Pure" Investment
The Income-Expenditure Balance for an Economy Including a Government Sector
The Fundamental Drivers of Demand
Implications of Our Analysis Based on the Income-Expenditure Balance
The Need for Analysis of Human Desire
Fundamentals of the Theory of Diminishing Utility
The Utility Attrition Function and a Model of Human Desire
The Utility Attrition Function and a Typical Example
Special Examples of Utility Attrition Functions
The Relationship Between Diminishing Utility and Human Desire
A Consideration of Consumption Units
Modeling the "Utility Account" and Derivation of the Goods Utility Function
Modeling the "Utility Account" and Derivation of the Goods Utility Function
Attributes of the Goods Utility Function
Changes in the Utility Attrition Rate and Their Impact on Demand
The Goods Utility Function Under Relaxed Assumptions
An Extension of the Concept of Diminishing Utility and Factors that Determine the Utility Attrition Rate
The Relativity of Utility Attrition Rate Determination
The Impact of Goods Maintenance and Damage
Utility Attrition and Its Causes
Real Utility Attrition and Monetary Utility Attrition
Analysis of a Non-Monetary Economy
Derivation of the Expected Goods Utility Function and Determination of Output Quantities
Maximizing Expected Goods Utility with Multiple Goods
Derivation of the Expected Goods Utility Function
Determination of Output Quantities for Given Labor Time
Derivation of the Leisure Utility Function
Maximization of Expected Total Utility and Simultaneous Determination of Output Quantities and Resource Allocation
Definition of Expected Total Utility Function and Maximization Conditions
The "Basic Equation of Labor" and Robinson Crusoe's Subjective Equilibrium
Framework for Simultaneous Determination of Output Quantities and Resource Allocation
Meaning and Impact of Changes in the Ratio Between Utility Parameters
Determination of Pure Investment Good Output Quantity and the Supply-Demand Adjustment Process
Commissioned Labor and Determination of Pure Investment Good Output Quantity
The Supply-Demand Adjustment Process for Pure Investment Goods
Extension to Analysis of a Monetary Economy
Analysis of a Monetary Economy and Determination of Output Quantities and Resource Allocations
Analysis of Household Behavior
Analysis of Corporate Behavior
Derivation of the Equilibrium Price Ratio
The Income Distribution Principle Under Profit Maximization and Derivation of the Labor Supply Curve
Labor Market Equilibrium
Framework for Simultaneous Determination of Output Quantities and Resource Allocation
Household Savings and Determination of Pure Investment
The Supply-Demand Adjustment Process for Pure Investment Goods
Introduction of Monetary Elements and Completion of Our Framework
The Loanable Funds Theory and Determination of Interest Rates
The Relationship Between the Utility Attrition Rate and the Money Supply
The Quantity Theory of Money and the Determination of Price and Money Wage Levels
Measurability of the Utility Attrition Rate
Measuring the Utility Attrition Rate
A Simple Worked Example
Human Psychology and Economic Fluctuation
Human Psychology and the Economic Cycle
Non-Linearity of the Utility Attrition Function and the Emergence of an Economic Cycle
Monetary Factors and Their Impact on the Economic Cycle
The Formation and Collapse of a Financial Bubble
Changes in Industrial Structure and Their Impact on the Economic Cycle
Human Psychology and Economic Growth
Pure Investment Activity by Firms and Economic Growth
A Brief Consideration of Technological Innovation
The Effectiveness of Aggregate Demand Management Policy
Controllable Loan Balances and Utility Attrition
The Relationship Between Market Interest Rates and Utility Attrition
Equilibrium Conditions for the Loan Market
Determination of the Utility Attrition Rate and the Market Interest Rate
The Effectiveness of Aggregate Demand Management Policy and Characteristics of Our Theoretical Framework
The Effects of Fiscal Policy Action
The Effects of Monetary Policy Action
The Classical Dichotomy and Our Theoretical Framework
Dynamic Analysis of Demand Psychology and Policy Implications
Derivation of the Purchase Price Function for a Representative Household
The Relationship Between Goods Supply Prices and a Household's Reconsumption Cycle
The Purchase Price Function for a Representative Household
Derivation of the Cumulative Purchase Quantity Function and Dynamic Aspects of Demand
The Distribution of Purchase Prices Throughout the Household Sector and Derivation of the Cumulative Purchase Quantity Function
Dynamic Aspects of the Demand Quantity Determination Process for the Household Sector
Short-Term Economic Stimulus Measures
The Impact of Non-Discriminatory Spending Policy
The Impact of Non-Discriminatory Spending Policy During a Deep Recession
Discriminatory Spending Policy and Its Effectiveness
Estimating the Cumulative Purchase Quantity Function
Points to Consider Regarding Discriminatory Spending Policy
A Summary of Our Theoretical Framework
A Summary of Our Theoretical Framework and Its Characteristics
A Summary from the Perspective of Microeconomic Theory
A Summary from the Perspective of Macroeconomic Theory
Characteristics of Our Theoretical Framework
A Brief Discussion of Underemployment Equilibrium Analysis
The Labor Market and Downward Rigidity of Money Wages
Corporate Profit Trends and Labor Adjustments (in Terms of Household Numbers)
Directions for Future Research
References
Index