Animal spirits: how human psychology drives the economy, and why it matters for global capitalism

Neoclassical economics states that economic decisions about human behavior are based on figures, statistics, and assumptions, and that rational decisions made on the basis of these assumptions do not change under different emotional conditions.However, as Amos Tversky and Daniel Kahneman stated in their studies in 1974 and Prospect Theory in 1979, people have only limited rationality with heuristics and biases.While neoclassical economic assumptions prevents economics from being a true social science, behavioral economics tries to explain economic events by understanding people without isolating them from economics.The book entitled "Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters…