Poor but rational?
نویسنده
چکیده
Modern development economics emerged with the realization that poverty changes the set of options available to individuals. Poverty thus affects behavior, even if the decision maker is “neo-classical”: unboundedly rational, forward-looking, and internally consistent. The “homo economicus” at the core of neo-classical economics (“calculating, unemotional maximizer”, (Mullainathan and Thaler, 2000) would behave differently if he was poor than if he was rich. Asset market failures and preferences towards risk are sufficient to explain why asset ownership matters, why worthwhile transactions and investments may not always take place, and why the poor may remain poor as a result. The initial theoretical advances opened a new empirical agenda to mainstream economists.
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