The Role of Decision-making Biases in Ireland's Banking Crisis

Datos Bibliográficos

ID6074848
AutoresPeter D Lunn (0000-0002-7174-5320, Trinity College Dublin, autor de correspondencia)
Año2013
Volumen28
Número4
Páginas563-590
Fecha de publicación2013-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaIrish Political Studies (JOURNAL)
Identificadores de la revistaISSN: 0790-7184 • E-ISSN: 1743-9078
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/07907184.2012.742068
OpenAlexW2110905639
IdiomaEN
Citas recibidas3
Referencias citadas34

How Ireland's banking crisis ultimately comes to be understood will have a long-term impact on Irish policy and politics. This article considers potential causes of the crisis suggested by advancements in behavioural science. It hypothesises and assesses whether known biases in judgement and decision-making were instrumental in the development and severity of the crisis. Evidence is considered in relation to whether financial decisions were influenced by seven empirically established behavioural phenomena. The hypotheses are relevant not only to the decisions of consumers, businesspeople, bankers and regulators, but also to the roles played by civil servants, politicians, academics and journalists. The analysis concludes that the scale of Ireland's boom and its lack of relevant past experience increased the vulnerability of decision-makers to specific forms of disadvantageous economic and financial reasoning. Implications for policy designed to prevent and contain future crises are discussed

Boom · Economics · Financial crisis · Irish · Judgement · Macroeconomics · Political economy · Political science · Politics · Positive economics · Financial Literacy, Pension, Retirement Analysis · Financial Markets and Investment Strategies · Housing Market and Economics · Law