Kasım Anül Economics

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Behavioral Economics (I): Conformity

Conformity is influence of majority. If anyone has a polar attitude or action, they would not prefer to reveal them against majority. People intend to modify their thoughts to blend in majority. For example , suppose that you are watching a movie with your friends at the cinema. After the ending of it, if your whole friends said that they liked it, you would agree them even though you did not like it because you do not want to be rejected by them. It is called ‘’ normative conformity’’. On the other hand, if a teacher asked a question in the class and some students answered it , if you have no knowledge about question or you doubt yourself, you would agree the previous students. It is called ‘’informational conformity’’ Market speculation is similar to conformity. When people heard any speculation they think that "

Why is PPP higher than GDP in developing countries

As we know, developed countries have more capital compare to labor and developing countries have more labor compare to capital. Heckscher-Ohlin theory says that a county which has capital more than labor, country produces capital abundant goods like car, computer etc. It means that capital abundant goods are cheaper than labor goods relatively .Likewise, a country has labor more than capital , it produces labor abundant goods and they become cheaper than capital abundant goods in the country. GDP (gross domestic production) is total output of the country. PPP (Purchasing Power Parity) is how many things can we buy with 1 $ in the country , if we explain easily. When we compare GDP and PPP, we’ll see developing countries’s PPP is higher than GDP. Why? Firstly, PPP’s basket more include labor abundant goods like food and dress and then developing countries more produce labor abundant goods and then they export them to developed countries. So labor ab

Barcelona; Another World

It is obvious that cities reflect people’s culture, country structure, government success, and community mentality. Can you imagine a city which sidewalks wider than the road of cars? If you live in İstanbul it is impossible to imagine. Because of that when I went to Barcelona the first time, I was surprised so much. If you want to learn your country care people or not, just look at the measure of the sidewalks. It shows that Barcelona gives priority to all people not just certain a class. As you know capitalism creates its rich class. My first taught Barcelona is a social country. ( If you have sufficient patience, you will learn why I am calling country). Already while you are walking you can see many water sources for drinking in short distances. On the other hand, there are a lot of seats. Most of them are for one person. It shows that people are introvert. Normally, before I go to the one country whose hostel prices too expensive I use couch surfing. I used for Paris and V

What’s Waiting Turkey Budget

Negotiations for higher salary were concluded between the government and the public sector. The government offered 4%+4% for 2020 and 3%+3% for 2021. The public sector wanted total 20% rise. They could not deal and went to arbitration. The government’s offer was accepted by arbitration. Already, government's members constitute a big part of arbitration. The public sector is not satisfied about the decision but the decision is absolute. Why this happened. If we look deeper we will see the problems. Let’s find out. Turkey's budget deficit has been incredibly increasing in the last years. In 2008, the budget deficit was 72.6 billion Turkish Lira (14.8 billion dollars). The budget deficit to GDP was 1.9%. Now, just in the first seven months of 2019; the budget deficit is 68.7 billion Turkish Lira (12.3 billion dollars). These are huge numbers for Turkey that already has international trade deficit. However, the point problem was caused by the government's