Cultural and Behavioral Differences in Global Economies
Restricted (Penn State Only)
Author:
Chander, Amisha
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Brian Spangler Davis, Thesis Supervisor Brian Spangler Davis, Thesis Honors Advisor Svetla V Vitanova, Faculty Reader
Keywords:
Behavioral Finance Finance Culture Bias
Abstract:
This paper examines the cultural and behavioral behaviors that influence major world economies to identify patterns and behaviors that differentiate these economies and propel them further than others. Findings indicate different personal financial habits stemming from cognitive biases, proving the importance of studying behavioral finance and including a qualitative side to financial thinking outside of standardized, quantitative formulas. The paper also presents cultural differences noticed between the leading five economies in the world. Findings stem form comparing the cultural differences, in a financial sense, and analyzes what helps promote economies and how this can be applicable on an individual level as well. Overall, the paper shows a qualitative side to the financial world as compared to the rational approach that is often associated with decision making, highlighting biases, behaviors, and cultures as leading factors that influence day to day thinking.