The rise of behavioural approaches in economics has been one of most significant developments in the study of economic decision-making in recent years. The increasingly acknowledged failings of standard models of choice to explain economic decisions has prompted economists to incorporate into their analysis psychological insights into individual behaviour, such as social cognitive and emotional biases. This book introduces the topic of behavioural...

The term “degrowth” has emerged within ecological and other heterodox schools of economics as a critique of the idea (and ideology) of economic growth. Degrowth argues that economic growth is no longer desirable—its costs exceed its benefits—and advocates a transformation of economies so that they produce and consume less, differently and better. Giorgos Kallis provides a clear and succinct guide to the central ideas of degrowth theory and...

The resource curse, or paradox of plenty, refers to the long-established notion central in development economics that countries rich in natural resources, particularly minerals and fuels, perform less well economically than countries with fewer natural resources. In other words, resources are an economic curse rather than a blessing. This short primer explores the complexities of this idea and the debates that surround it, in particular under what...

The “informal” economy – economic activity and income outside government regulation, taxation and observation – is, by its very nature, difficult to quantify. Recent estimates suggest it accounts, in OECD countries, for around 13% of national income (in the UK, the equivalent of £150 billion) and in developing nations it can make up as much as three-quarters of all non-agricultural employment. Whatever the exact figures, it is clear that the...

Understanding how we take economic decisions and how we depart from rational choice theory has become increasingly important to understanding the workings of the economy at all levels. The concept of bounded rationality has been central to that endeavour and is used in economic models to shed light on real-life behaviour, which has led to specific policy implications that would otherwise have gone unappreciated. This introduction presents the key...

Productivity looms large in public policy discussions yet many find themselves hard-pressed to explain exactly what the term means. Even within economics, its nature and significance is contested and the focus of complex debate. Michael Haynes cuts through the jargon and political sloganeering to provide a detailed examination of the concept, how it is used and why it is held by economists to be so important in evaluating the health of economies. The...

Without access to mainstream financial services, people pay more for goods and services and have less choice. The impacts of exclusion are not just financial but also affect education, employment, health, housing, and overall well-being. Limited access to financial services also impedes economic development in impoverished communities, which has prompted policy-makers, private institutions and NGOs to develop strategies to address financial inclusion....