Human beings can either have a propensity to do nothing or to do something. People who tend to prefer inaction are said to have a default bias or status quo bias, and this usually results from inertia or anticipated regret. However, many people display action bias, where they tend to prefer action over inaction. A […]
Journals to publish in
Here you will find a list of journals
Ambiguity Effect – Why we tend to avoid something unknown
The ambiguity effect is a cognitive bias (a shortcoming in logical reasoning induced by the human brain’s urge to conserve energy by cutting corners). It reflects our tendency to avoid alternatives that are confusing or lack information. We dislike unpredictability and are thus more likely to choose an option where the likelihood of attaining a […]
Affect Heuristic –
Explained: This is Affect Heuristic When it comes to making decisions, we often rely on our gut feelings. This is because relying on our intuition allows us to make quick decisions without spending time analyzing all the possible options. However, research has shown that our intuition can sometimes lead us astray, especially when making judgments […]
The Framing Effect – How Presentation Can Change Our Minds
Framing Effect – Definition The framing effect is a form of cognitive bias that affects decision-making. You can ask a question or present facts and data differently with the framing effect. For example, if surgery has 20% risks, you can frame this information as “80%-risk free” or “20% risk.” The framing effect will lead people […]
The Hindsight Bias – The knew-it-all-along phenomenon explained
Hindsight bias is a cognitive bias that causes individuals to believe that past events were predictable even though they were not. This type of thinking can cause an individual to ignore information or fail to explore all available options fully. Hindsight bias is related to the “hindsight illusion” concept-the belief that we possess more knowledge […]
Empirical Material – Most useful data sets for empirical research
Conducting thorough empirical analysis needs reliable data sets. In this article I will be listing some data sets that have been used widely in the literature. For your own convenience I divided them into macroeconomics and microeconomics. Economics empirical research needs data on hand. Most of our time we spend in data wrangling. Data is […]
How to derive a sound economic model for data science in international trade – The Armington Model
Introduction Data Science is often conducted without profound theoretical models. As shown in a previous post on the Armington Model this can lead to biased results leading to missinterpretation and wrong conclusions. In this post I will be deriving the Armington Model in order to give you an easy example of economic modeling. Let’s start […]
The Armington Model and the Multilateral Resistance
Introduction Trade flows are a fundamental part of any economy. Due to this, researchers remain keenly engaged in uncovering the intricate details as to what determines and shapes this critical aspect of the global economy. The gravity model of international trade is one of the leading tools for the empirical investigation of international trade flows. […]
The Hamster Paradoxon
The way of an economy Our economies are driven by expenditure: Y = C + I + G + NX where Y denotes GDP, C denotes consume, I is the aggregated investment, G is goverment spending, NX is net capital account. This identity implies a series of important key aspects: To keep economies on a […]