Homo Economicus

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Homo Economicus

A person that desires to maximize his/her needs or desires. Homo economicus is used most of the time to refer to the rational economic actor, who desires wealth, does not desire to work if it can be avoided, and is able to find ways achieve those ends. This assumption is accepted by many economists, especially those who follow rational choice theory, but it remains controversial. The concept of homo economicus was developed by utilitarian thinkers, and contrasts with the constructs of behavioral economics.
References in periodicals archive ?
Although this school of thought went into abeyance with the rise of the rational economic actor model from the 1970s, since the turn of the millennium, it has resurfaced (see for example, Alm et al.
At present when tackling the informal economy, a rational economic actor approach is widely adopted.
Although some argue that this social actor approach is an alternative to the rational economic actor approach (Eurofound, 2013; Williams, 2014a), the vast majority of scholars have asserted that these are complementary rather than competing approaches.
These results thus confirm the rational economic actor approach; increasing the actual or perceived penalties and risks of detection reduces the likelihood of urban populations participating in the informal economy.
Is it the case however, that urban populations decrease their level of participation in the informal economy if a government combines the conventional rational economic actor approach of increasing the level of punishments and/or risk of detection, with the social actor approach of improving tax morale?

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