Human Psychology and Economic Fluctuation - by H Tamura (Hardcover)

About the Book

This book constructs a new basic structure model of economic circulation based on a new flow-like concept of utility (diminishing utility) and analyzes the direct relationship between human psychology and economic fluctuation, while expanding it into a consistent explanation of the generation and the collapse of financial bubbles.

Book Synopsis

This book incorporates human psychology into economic analysis. It constructs a new basic structure model of economic circulation, analyzes the direct relationship between human psychology and economic fluctuation, and provides a framework in which output and the allocation of resources are simultaneously determined.

Review Quotes

'This book expresses mathematically what can be referred to as one of the basic, classic questions of economics, namely, the theme of 'the continuous harmonisation between desire and appropriation' and constructs a model that arguably succeeds in doing so.' - Tsutomu Okawa, Emeritus Professor of Osaka City University, Japan and co-author, with Xiaotong Zhang (Professor of Nankai University, China), of Cointegration and Error Correction: Theory and Application with Mathematica

About the Author

HIDEAKI TAMURA is an assistant to the Director of The Bank of Tokyo-Mitsubishi UFJ. The study reflects his own successive observations during the disheartening post-bubble economic period known as 'the lost decade' that arose in Japan from the early-1990s.