A measurement instrument of cognitive economics in the BRICS countries

The paper envisages the key features of the cognitive economics in the BRICS countries. Due to their substantial impact on the development of the world economics, it is necessary to investigate the cognitive processes in these countries. The distinctive feature of the current world economy is the quality transformation of its technological basis that forms global challenges for the future world economic development. The essence of this transformation is to strengthen cognitive processes: emergence of robots, commercial spread of artificial intelligence technologies, changes in labor skills, etc. These quality changes lead to the formation of a new stage of economics — cognitive economics. As a sphere of scientific research, cognitive economics includes three main domains: intellectual systems, knowledge management, and cognitive technologies. Despite the fact that all these phenomena are present in the economy of each country there is no suitable instrument that can measure cognitive processes at the country level. The purpose of this paper is to elaborate a measurement tool for evaluating the level of cognitivization in the BRICS countries. Taking into account this goal, the authors developed an aggregated index based on a generalized principal component analysis. As a result, the main parameters that make the greatest contribution to the cognitive index were identified. Comparison at the country level shows that the first sub-index has more weight connected with the human capital of the countries. As for R&D and ICT infrastructure — the second and third sub-indices — the situation in the BRICS countries is almost the same. The obvious conclusions of the monitoring are that cognitive economics in the BRICS countries has a chance to intensify their economic development and slash the backlog with the developed countries.

Entangled Entrepreneurial Competitiveness Advantage: An Opinion Paper

The economic action of any individual seems to be guided by psychological components belonging, often more to the sphere of the intuitive rather than to the logical mind. Cognitive Economics, unlike other critical approaches to neoclassical rationality, is aware of this reality and moves the center of gravity of the theory of the mind of the economic actor from the aspects of conscious, explicit, intentional, and rational towards the tacit, sub-conscious, intuitive and emotional. Cognitive Economics, as empirical theory, par excellence, does not refuse to consider the contribution of the mind to an economic decision. The role of the psyche in many situations of choice is undeniable. It is not, however, the only cognitive reality responsible for economic choices. From this point of view, the concept of limited rationality, remaining within a vision of intentionality in cognitive activities, loses much of its explanatory capacity. One of the motives for economic action is limited rationality because there is not enough computational capacity for calculating the consciousness and the intentions of the human mind. Rationality is also limited through the influence of intuitive, affective, emotional, and silent factors, which all characterize what we have called the intuitive mind. The economic actor’s mind theory is based on cognitive duplicity, integrating the insensitive and the intuitive component depending on the situations and contexts of a decision. However, there are few situations in which we can say that the insensitive component takes the decision without influence of that intuitive. A small part of the mind emerges to the surface image of the economic actor, which characterizes some of the intuitive. But it rests on the larger submerged body of the mind, which is not visible but responsible for guiding the inferential paths of homo-economicus. The’ cognitive economy assumes that this duality of the human mind and the primacy of the intuitive component explains economic action.

Cognitive Decline and Financial Well-Being: Evidence From the Cognitive Economics Study

Maintaining financial well-being is important for older adults, as they are generally decumulating wealth at this stage of life. We use survey data from the Cognitive Economics Study (CogEcon, 2008-2017) and Cognition and Aging in the USA Study (CogUSA, 2007-2014) to investigate the impact of cognitive decline on financial well-being of older adults in the United States. In our sample (N = 976), with an average starting age of 65 years old, we use linear regression, then add results including a control function approach to correct our estimates for sample selection and attrition. In particular, those who have poor health outcomes (including death) disproportionately attrit from the study and may bias the results of a naïve regression. The naïve regression results yield no relationship between cognition and financial well-being; however, after controlling for attrition, we find that a decline in crystallized intelligence is associated with a decrease in financial well-being, and changes in fluid intelligence are not associated with changes in financial well-being.

Cognitive economics and IQ: a foreign view

В статье анализируются исследования, посвященные влиянию макропсихологических параметров (например, средний коэффициент интеллекта) на экономический потенциал и развитие экономики государства. В статье представлены основные зарубежные исследования по выбранной тематике (поскольку это направление наиболее распространено в настоящий момент в англоязычных странах, в частности в США), их критика, включающая статистическую проверку и её интерпретацию. Представленные данные свидетельствуют о том, что именно такая психологическая переменная, как средний коэффициент интеллекта (на индивидуальном и групповом уровнях), станет модерирующей и прогностической по отношению к ВВП и другим экономическим по- казателям. Ключевые слова и словосочетания: когнитивные способности, интеллект, IQ, ВВП, эко- номическое развитие, когнитивная экономика, когнитивный капитализм.

Estimated Stock Price Based on Company Communications: Mind Genomics and Cognitive Economics as Knowledge-Creation Tools for Behavioral Finance

Respondents estimated the price of a share of stock for a company, based upon a set of short vignettes, one estimate for each vignette. The vignettes comprised 2-4 elements-statements selected from four groups: WHO presents the information, the companys VALUES, how the presenter shows ALIGNMENT with company values, and how CUSTOMERS respond. The linkage between expected dollar value of the stock and message was highest for the element talking about positive customer reviews. The respondents divide into two groups or mind-sets, based upon their patterns of response to the elements. Mind-Set 1 estimates stock price based on messages communicating good governance. Mind-Set 2 estimates stock price based on messages communicating customer intimacy and excitement.