Agreed – talking about all the risks is a great way of explaining why you made the decision, and also highlighting what you value and care about subjectively.

That is part of what makes economics so much danged fun – the subject doesn’t (or at least shouldn’t) tell you what the answer is, just the process of thinking through it and trying to figure out why. How frikken exciting!

However sometimes after outlining trends, risks, key variables and possible outcomes, I get asked why I may or may not have taken a particular decision in the same circumstances (eg rent vs buy, fix vs float) so it can be necessary to outline potential importance of difference personal circumstances or different appetite for/tolerance to risk.

That’s right 🙂

Perhaps they want “other people” to be forced as a coordination thing – or because they think other people are stupid. Or perhaps they do want to “commit” to something – that is where having Kiwisaver as opt-out with no subsides would have been a AWESOME natural experiment!

I am not sure how we put “responsibility” or an aversion to it into utility functions – it could well be a driver of framing effects though I guess? Good question 🙂

See also the poll reported in today’s press that people want to be forced into KiwiSaver. Is congenital inability to accept responsibility for one’s own decisions recognised in behavioural economics?

Hehehe. I figure just want someone to blame if their punt doesn’t work out – and are annoyed that economists and journalists aren’t taking responsibility for their choice!

Fair enough as well, what else do we do right 😉

As a journalist who writes about this stuff, I occasionally get the same sort of requests. I take it as an inverse measure of confidence in the economy.

If people are asking a journalist for advice on money, they’ve really lost the plot.