Psychology as a branch of science could not take its place in the world for a long time. This fact says about a huge omission of a mass of intelligence by a human. However, the time overtook its own, and psychology became more significant for people and the economy in general. Being a science that would not exist without a human, it is impossible to omit its influence in it. Therefore, the main goal of this work is to consider the influence of behavioral mechanisms on decision-making by economic agents and, as a result, on economic growth. The theoretical part is closely interconnected with the practical part. This explains why the article does not have a clear separation between the two ones. Openings within the frame of behavioral economics embrace both the present and the past, which are aimed at showing both the fundamental nature of this knowledge and its undisputable relevance. These factors together represent a brief history of the development of this branch of knowledge. Through the prism of the main achievements of scientists of different years in the sphere of behavioral economics the irrational behavior of consumers was analyzed. This behavior was reflected in the examples, which showed simultaneously both: the main flaws of the classical macroeconomic models, and the importance of considering behavioral economics when analyzing aggregate demand and aggregate supply.
Psychology as a branch of science could not take its place in the world for a long time. This fact says about a huge omission of a horribly mass of the intelligence by a human. However psychology became more significant for people and the economy in general. Being a science that would not exist without a human, it is impossible to omit its influence in it. Therefore, the main goal of this work is to consider the influence of behavioral mechanisms on decision-making by economic agents and, as a result, on the economic growth. Openings within the frame of behavioral economics embraces both the present and the past, which are aimed at showing both the fundamental nature of this knowledge and their undisputable relevance. These factors together represent a brief history of the development of this branch of knowledge. Through the prism of the main achievements of scientists of different years in the sphere of behavioral economics, which are selected according the author's preference, the irrational behavior of consumers was analyzed. This behavior was clearly reflected in the examples, which showed simultaneously both: the main flaws of the classical macroeconomic models, and the importance of considering behavioral economics when analyzing aggregate demand and aggregate supply. Such examples were taken from foreign practice and the historical past of Russia. At the end of the analysis of the influence of behavioral factors on economic agents some conclusions occur. They were confirmed by the statistics or logical facts that flowed from the fundamental laws of macroeconomics. As a result, it was concluded that it is impossible to simply answer the question of about what the result the behavioral economy leads to (growth or decline). Because much depends on the degree of economic power of the economic agents, as well as it depends on many other factors (age of consumers, degree of education, personal characteristics of each consumer, market for analysis, state policy, mentality, etc.).
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.