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on Evolutionary Economics |
| By: | Eric M. Uslaner (University of Maryland) |
| Abstract: | There are multiple dimensions of trust. The standard meaning I call "strategic trust." But more important is "moralistic trust," which does not stem from experience, but rather is learned early in life and is largely stable over time. Moralistic trust leads people to do good works such as contributing to charity and volunteering time and to be more tolerant toward minorities. Countries with high levels of trust have better functioning governments and redistribute resources from the rich to the poor. Moralistic trust rests upon a foundation of economic equality: The most equal countries have the highest levels of trust. |
| Keywords: | Trust, Social capital, Tolerance, Civic engagement |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.69&r=evo |
| By: | John M. Gowdy (Department of Economics, Rensselaer Polytechnic Institute, Troy NY 12180-3590, USA) |
| Abstract: | The policy recommendations of most economists are driven by a view of economic reality embodied in Walrasian general equilibrium theory. Ironically, the Walrasian system has been all but abandoned by leading economic theorists. It has been demonstrated to be theoretically untenable, its basic assumptions about human decision making have been empirically falsified, and it consistently makes poor predictions of economic behavior. The current revolution in welfare economics offers opportunities on two related fronts for an evolutionary perspective on human behavior to reshape economic theory and policy. The first opportunity is to incorporate empirically-based information about human behavior to the study of human wants and their formation. This includes information about the evolution of the genetic component of decision making as well as the cultural dimensions of behavior. Expanding the role of economic analysis beyond stylized market behavior to focus on well-being (real utility) has far-reaching consequences for microeconomic policy. Secondly, abandoning the Walrasian model also means rethinking the microfoundations approach to the economic analysis of sustainability. This opens the door for economists to engage with the growing body of research on the evolution of whole societies. One link between the evolution of human behavior and the evolution of human societies is the psychological phenomenon of considering sunk costs. Understanding and overcoming the sunk cost fallacy may be the key to creating a sustainable society. |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:rpi:rpiwpe:0505&r=evo |
| By: | Matthias Benz |
| Abstract: | It is typically assumed that people engage in entrepreneurship because there are profits to be made. In contrast to this view, this paper argues that entrepreneurship is more adequately characterized as a non-profit-seeking activity. Evidence from a broad range of authors and academic fields is discussed showing that entrepreneurship does quite generally not pay in monetary terms. Being an entrepreneur seems to be rather rewarding because it entails substantial non-monetary benefits, like greater autonomy, broader skill utilization, and the possibility to pursue one’s own ideas. It is shown how incorporating these non-monetary benefits into economic models of entrepreneurship can lead to a better understanding of the phenomenon. |
| Keywords: | entrepreneurship, self-employment, wage and return differentials, non-monetary work benefits, job satisfaction |
| JEL: | M13 J23 J31 J32 M54 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:243&r=evo |