Tag Archives: economy

Predictably Irrational

The rational choice theory in economics assumes that consumers are rational. However, as in most cases of social science, such assumption is quite limited, thereby leading to plenty of economists’ questioning it and measuring its plausibility. Such economists are also referred to as behavioral economist. Dan Ariely, the author of the book Predictably Irrational, has dedicated his research to people’s behaviors in regards to situations involving money and social values namely by questioning that rational choice theory’s assumption. Continue reading

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Transition economies: The case of Bulgaria

Abstract: Nowadays Bulgaria is known as a former communist country that went through a transition period to a free-market economy. On November 10, 1989, a day after the fall of the Berlin Wall, the Central Committee of the Bulgarian Communist Party made the decision to strip Todor Zhivkov of his power. Bulgaria and the German Democratic Republic were not the only then communist countries whose governments collapsed in November 1989. Other Eastern Bloc countries went through the same in that month and the months after. What is the transition period? Does it vary on a case-by-case basis? If yes, which kind of transition is the best, if any? How are transition countries compared? What happened in Bulgaria during its transition period from a socialist economy to a free-market economy? How did the Bulgarian economy transition compared to some of the other transition economies?

This paper aims at answering these and similar questions. Part one explains the two different approaches on transition – shock therapy and gradualism – including how successful they were in several countries – Russia, China and Poland, picked on a random basis as positive or negative examples of one of the two approaches. Part two discusses the case of Bulgaria compared to other transition economies. Part three draws a conclusion on the case of Bulgaria from the conducted research. Continue reading

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Health care explained in general

Among the biggest debates not only in the U.S. but all over the world as well is health care. People have cherished good health over the years so much that in most cultures there is at least one general wish that has to do with the other side’s good health. Continue reading

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A government like a corporation and a corporation like a government

“Running government like a corporation/business” is a comparatively frequently encountered expression especially within the American society before elections take place. Some may buy on the idea, others never have and will probably never do so. I sincerely hope that the notion of being able to run government like a business – big or small – never takes roots and here are the reasons why: Continue reading

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Public sector, private sector and their interdependence

The current economic and financial crisis, which has lasted for more than two years so far, urged both experts and non-experts to reconsider their views about the size of their government, its involvement in their lives and also their spending habits and plans for their future. Unemployment rates have hit the two digits, while most of us – regardless of whether we are employed, underemployed, unemployed, laid off, or looking for a job – have lost money in one form or another. Some of us have lost money because of what is going on with the financial markets, others got themselves into schemes and so on. These issues returned politicians back to the stage. Continue reading

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The economy and us in a nutshell

How does the economy work and what do we do about it? Now that it is struggling, more people are getting interested in its mechanisms. It is a complex system to which different tools can be applied which can help, hurt or have no impact over it. Depending on the tools being applied to a specific economy (local, regional, state, even world), nowadays it is divided into two types – free market economy and planning economy. Both of them have their advantages and disadvantages but the former has already been proven to be better than the latter. Continue reading

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Africa just like USA

Will the African Union become the United States of Africa similar to the United States of America and the European Union? Globalization has made it somewhat fashionable to establish political mergers, and the African leaders’ plan seems like a bright idea at first sight. So much for the good news though.

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