The essays in this volume provide a comprehensive view of applications of the cost of capital. The cost of capital is the key concept in the analysis of taxation of business income. It is also critical to the formulation of a new system of national accounts, where it plays the role of the price...

Anyone who watches the television news has seen images of firefighters rescuing people from burning buildings and paramedics treating bombing victims. How do these individuals make the split-second decisions that save lives? Most studies of decision making, based on artificial tasks assigned in...

In a complex and uncertain world, humans and animals make decisions under the constraints of limited knowledge, resources, and time. Yet models of rational decision making in economics, cognitive science, biology, and other fields largely ignore these real constraints and instead assume agents...

Amos Tversky (1937-1996), a towering figure in cognitive and mathematical psychology, devoted his professional life to the study of similarity, judgment, and decision making. He had a unique ability to master the technicalities of normative ideals and then to intuit and demonstrate...

The global economic crisis of 2008-2009 seemed a crisis not just of economic performance but also of the system’s underlying political ideology and economic theory. But a second Great Depression was averted, and the radical shift to New Deal-like economic policies predicted by some never took...

Innovation is the ruling buzzword in business today. Technology companies invest billions in developing new gadgets; business leaders see innovation as the key to a competitive edge; policymakers craft regulations to foster a climate of innovation. And yet businesses report a success rate of only...

Lectures on Urban Economics offers a rigorous but nontechnical treatment of major topics in urban economics. To make the book accessible to a broad range of readers, the analysis is diagrammatic rather than mathematical. Although nontechnical, the book relies on rigorous economic reasoning. In...

Health Economics combines economic concepts with empirical evidence to enhance students’ economic understanding of how health care institutions and markets function. It views the subject in both microeconomic and macroeconomic terms, moving from the individual and firm level to the market...