In making the award, the committee highlighted three of Thaler's main conceptual contributions. The first, called limited rationality, helps explain why people do not necessarily follow the dictates of classical economics. For example, in the case of the credit card debt, classical economics would predict that people should do whatever maximizes their money. But Thaler argued that people do mental accounting that breaks their wealth up into different accounts that are targeted for specific needs and not for maximizing their overall wealth. Similarly, he showed that people's innate aversion to admitting a loss will cause them to hang on to a losing stock longer than a winning one. … [Read more...] about Pioneer of ‘nudge’ science and explorer of irrational decisions earns economics Nobel
Brazil economic crisis
Per capita water footprints depend on two things: consumption patterns and water intensity of the good being consumed. An example that helps account for the difference between the UK and US is beef consumption and production. The average American eats about 95 pounds of beef each year—four and a half times the global average. In the UK, the average person eats less than half as much beef as Americans do. On top of this, beef raised in the US uses nearly 50 percent more water. … [Read more...] about Humanity’s water footprint: US exports the most, uses the most per capita
Rozelle believes such numbers bode ill for China's hopes of joining the ranks of high-income countries. Over the past 70 years, he explains, only 15 countries have managed to climb from middle- to high-income status, among them South Korea and Taiwan. In all those success stories, three-quarters or more of the working population had completed high school while the country was still in the middle-income bracket. These workforces "had the skills to support a high-income economy," Rozelle says. In contrast, in the 79 current middle-income countries, only a third or less of the workforce has finished high school. And China is at the bottom of the pack. School dropouts don't have the skills needed to thrive in a high-income economy, Rozelle says. And, worryingly, the factory jobs that now provide a decent living for those with minimal training are moving from China to lower-wage countries. … [Read more...] about One in three Chinese children faces an education apocalypse. An ambitious experiment hopes to save them
Duggal and other advocates have criticized India’s large-scale closure, saying area-specific lockdowns are more humane and practical in India. But most experts agree a national lockdown was needed. Shahid Jameel, an Indian virologist and head of the Wellcome Trust/DBT India Alliance, notes that measures taken in previous weeks—including halting international arrivals—had not slowed the rate of increase in cases. “The experience from other countries has shown that if you lock down early, if you catch yourself early on the curve, there’s a better chance of limiting the spread,” he says. … [Read more...] about 1.3 billion people. A 21-day lockdown. Can India curb the coronavirus?
She added that global travel restrictions have prevented Taiwan startups from going abroad to seek funding for series A and B rounds. While Cheng noted that the amount of funding available at the seed and series A level in Taiwan has improved over the past few years, there is much less available as the amount goes upward. … [Read more...] about How coronavirus is affecting the Taiwanese tech industry