Life economy
Life Economy[1] is a branch of economical sciences and the movement in political economics based on the paradigm of ‘life economy’ as a complex system, which consists of interconnected subdomains, the structure and interactions of which are hierarchically arranged in such a way, that each subdomain acting within and upon the rules characteristic to "real-world" economy, retains, without replicating the economy on a smaller scale, its unique position in the wholistic model of the economy itself. This theory is based on the research of the operations of free markets of goods, services, labour and financial markets, modern marketing methodologies;[2] positive and negative reinforcements of socio-economic activity, as well as upon the real sector of economy; labour relations; expenditure and accumulation processes; financial and legal structures; socio-economic indexes and characteristics of budgetary systems; institutions of state administration and of their impact upon public policy, businesses and lives of citizens.[3]
Historical prospective
Life Economy theory has emerged in the context of the transformations of the paradigms of international development; global migration processes, world economy’ controversies and crises, unprecedented growth of state control of transition of capital, goods and services; control tightening in all spheres of public life; decline of purchasing power, growth of unemployment; transformation of the socio-economic development quality, and deceleration of a number of world economies. This theory has emerged as a response to the need of the state, [1], public, business in new economical theory that matches the trends of the socio-economic development of the state; the creation of comfortable conditions for business; the formation of transparent legal system with efficient code of law; the introduction of qualitatively new level of structuring and developing of labour relations; building of strong and accessible financial system. In other words, the introduction of such a theory, that focuses on socio-economic aspects of the behaviour of individuals, citizens,[4] public and various social strata, business circles in the context of variation of internal and external factors, crises phenomena, financial and economical parameters. «Life Economy» examines economical processes and phenomena as a «living being». The very heart of it lies in the community, self-organised in the context of historical, ethnic and cultural aspects of its existence. Public, economic entities, various institutions of public administration play their own unique role, perform specific function, mission in supporting of vitality and development of this being, while acting according to own particular rules and specific to the group codes of conduct. «Life Economy» represents the model of socio-economic system as wholesome «living being», the development and actions of which are framed by historical, cultural aspects of its evolution in the context of socio-political realia of a given state. This theory studies the economic growth in the connection with socio-economic psychology and the psychology of individual economic behaviour; it studies socio-economic processes taking into account individuals, groups, society formed on account of their cultural, ethnic and historical particularities.
Theory
According to Life Economy theory, positive and negative reinforcements are key tools applied in the context of socio-economic and individual economic psychology [5] to study behaviour of individuals, public, «masses», businesses as a reaction to changes of various external factors, crises, institutions, financial and economical parameters, socio- economic indicators, regulatory legislation, as well as the behavioural changes caused by television channels, radio, media agencies, news channels, social networks, announcements made by there public officials, experts, in other words, by all agents that create media environment of socio-economic processes and phenomena, political situation locally and globally, or actively participate in such environment. Positive and negative reinforcement can either accelerate or decelerate process of involving potentially active citizens in socio-economic activity of the state.
Key components of Life Economy theory
- Positive and negative reinforcers of socio-economic activity.
- Free markets of goods, service, labour and capital.
- Modern marketing methodologies.
- Socio-economic psychology.
- Personal economic psychology.
- Socio-economic network.
- Labor market.
According to Life Economy theory, positive and negative reinforcements of socio-economic activity [1] are key tools applied in the context of socio-economic and individual economic psychology == to study behaviour of individuals, public, “masses”, businesses as a reaction to changes of various external factors, crises, institutions, financial and economical parameters, socio-economic indicators, regulatory legislation, as well as the behavioural changes caused by television channels, radio, media agencies, news channels, social networks, announcements made by there public officials, experts, in other words, by all agents that create media environment of socio-economic processes and phenomena, political situation locally and globally, or actively participate in such environment.
Historical background
Originally the term positive and negative reinforcement was introduced in the article «Life Economy».[1] Positive and negative reinforcements of socio-economic activity have been marginally neglected, while in fact, they have an important role to play in functioning of socio- economic systems, and in many ways mould economic and political views, affect a career choice, education level, personal socio-economic contacts, moral and ethical qualities, relations in family, with colleagues and friends. They have bearing on productivity, efficiency, and above all, they greatly affect psychological and physical state of individuals and public as a whole, effectively are factors of social well-being indicators.
Theory
The positive reinforcements of socio-economic activity are listed below:
- Positive information.
- Meaningful and useful information.
- Legal and economical education.
- Clear and convincing.
- Live socio-economical network.
- Sufficient pay.
- Comfortable emotional atmosphere.
- Cooperation between public and administration.
- Cooperation between public and administration.
- Legal and economical transparency.
- Stability and confidence.
The negative reinforcements are listed below:
- Negative information.
- Excessive information.
- Inversely proportional effect.
- Cognitive incongruity.
- Will submission.
- Fear and anxiety.
- Evasion or half-truth.
- Distorted or excessive openness.
- Social network.
А more detailed description of positive and negative reinforcements of socio-economic activity, as well as the effect of a given positive or negative reinforcement on socio- economic activity can be found in «Life Economy» article.[1] Life socio-economic network is one of the key elements (positive reinforcement of socio-economic activity) in «Life Economy» theory [1] and a powerful design tool of live real economy with the aid of the virtual one.
Life Socio-economic network[1] is one of the key elements (positive reinforcement of socio-economic activity) in «Life Economy» theory
[1] and a powerful design tool of live real economy with the aid of the virtual one. The purpose of life socio-economic network is to design, represent and organise socio-economic interrelations in the Internet between active citizens, state administration, business, experts’ and academic communities. The purposes of life socio-economic network (LIFE ECONOMY) are to maximise the involvement into economic activity potentially active citizens; to nurture cooperation and trust between public administration and business in forming favourable atmosphere for business, with residents and non-residents; to create the conditions for free exchange and sale of goods and services; to stimulate economic growth and socio-economic development of «Life Economy» [1] with the aid of virtue one.
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Saphonov, A., Popkov, S., Slobodchikov, I., Smirnow, V., Yastrebova, E. Life economy. Despite Boarders journal. Issue 1, 2016.
- ↑ Seth Godin. Permission Marketing
- ↑ Alvin Roth.Who Gets What and Why. Eamon Dolan/Houghton Mifflin Harcourt
- ↑ Ernan Haruvya, Alvin E. Roth, M. Utku Unver. The dynamics of law clerk matching: An experimental and computational investigation of proposals for reform of the market // Journal of Economic Dynamics & Control. - 2006 — №. 30.
- ↑ Kahneman Daniel.The Foundations of Hedonic Psychology
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