The key assumption in neoclassical economic theory is that individuals are perfectly capable of taking rational decisions, translated into the homo economicus ideal-type. But what happens if individuals are not in perfect health and have their decision-making process threatened? Lately, much has been discussed about the rise in mental health issues, especially among youngsters. In […]
Author: Giovanna Mazzeo Ortolani
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Through the psychology of poverty
What explains the differences in economic decisions amongst poor and rich individuals? In 2014 Johannes Haushofer and Ernst Fehr, professors at Princeton and Zurich University, respectively, have written the article “On the Psychology of Poverty” for the Science magazine (original version here). They show evidence that poverty causes psychological consequences such as negative affectivity and […]
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