The Paradox of Value and Economic Bubbles: New Insights for Sustainable Economic Development
| Autor: | Tatyana Shabatura, Inna Gryshova, Stasys Girdzijauskas, Ingrida Griesiene, Remigijus Čiegis, Dalia Streimikiene |
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| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Sustainable development
Economic growth 050208 finance Renewable Energy Sustainability and the Environment 05 social sciences Geography Planning and Development paradox of value market saturation phenomena Management Monitoring Policy and Law sustainable economic development Austrian School economic bubbles 0502 economics and business Market saturation Value (economics) Economics Information cascade Marginal utility 050203 business & management Economic bubble Consumer behaviour |
| Zdroj: | Sustainability Volume 11 Issue 24 Sustainability, Basel : Basel, 2019, vol. 11, no. 24, art. no. 6888, p. [1-17] |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su11246888 |
| Popis: | The article presents a new approach to the solution to the paradox of value based on the theory of marginal utility of the Austrian School of Economics. The new approach is based on the theory of compound interests and economic bubbles. The study presents valuable theoretical insight towards sustainable economic development. The paper provides a brief formulation of the theory of compound interests, introduces the structure of compound interests model, and shows the relations between simple and compound interests as well as dimensionless interests. It reveals the saturation phenomena, and emphasizes its impact on economic and financial bubbles. The relation between the value of paradox and the price bubbles is presented. The article also explains the possibilities of the phenomenology of growth in formulating the paradox of saturation and studying the paradox of value. The phenomenological method allows to relate prices and financial and economic bubbles into a general entirety. Therefore, this paper deals with very important sustainable development issues as it discusses the market saturation phenomena, economic bubbles, and emotional consumer behavior. The limitations of behavioral theories are pointed out and their misunderstandings of information cascades are emphasized. The article provides the explanation of the nature of economic bubbles by employing the theory of compound interests. |
| Databáze: | OpenAIRE |
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