Storytelling and Policymaking in Economic Modelling

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What is one potential benefit of including narratives in economic modeling?

Adding unnecessary information to economic models

Increasing the complexity of economic models

Making economic models more confusing

Enhancing the explanatory power of economic models (correct)

How can narratives be useful in explaining crises, investment decisions, brands, and policies?

By adding irrelevant details that distract from the main issues

By making the models more complicated and harder to analyze

By confusing policymakers and hindering decision-making

By providing a chronological account that enables better understanding (correct)

Why has the traditional approach to policy analysis disliked the role of narratives in policy making?

Because it values evidence over storytelling (correct)

Because politicians are not skilled at storytelling

Because narratives are considered too emotional for policy making

Because it sees politicians as technicians rather than storytellers

In the context of policy analysis, what does 'value-laden stories' refer to?

Stories that have hidden agendas or biases Signup and view all the answers

How can narratives help policymakers and politicians see each other from different perspectives?

By simplifying complex issues into clear narratives Signup and view all the answers

What role do politicians traditionally play in the storytelling process according to the text?

Storytellers with visions and values Signup and view all the answers

What is the main focus of the paper mentioned in the abstract?

Exploring the impact of narratives and stories on various aspects of human life Signup and view all the answers

What are the three major categorized aspects on which narratives have an impact as mentioned in the paper?

Economics and finance, policymaking, society Signup and view all the answers

How are narratives and stories described in the introduction?

Synonymous terms revolving around characters and plot lines Signup and view all the answers

In which fields do narratives have an impact according to the paper?

Economics, policymaking, society Signup and view all the answers

What is the primary difference highlighted between narratives and stories in the text?

Narratives encompass past events while stories may include fictional elements Signup and view all the answers

How does the paper aim to uncover more insights according to the abstract?

By exploring different explanations about socio-economic and cognitive aspects of narratives and stories Signup and view all the answers

Why can one phenomenon have different explanations in financial markets?

Due to the use of narratives to convey meaning differently. Signup and view all the answers

What contributes to biases in decision-making processes?

Relationship between the storyteller and the audience. Signup and view all the answers

How does a storyteller have an advantage over a listener?

By having insights into unexplainable events. Signup and view all the answers

What characteristic makes narratives in financial markets influential?

Conveying specific meanings in diverse ways. Signup and view all the answers

Why is the conventional approach ineffective in explaining asset bubbles?

It assumes humans always act rationally. Signup and view all the answers

What distinguishes behavioral finance from traditional finance theories?

Behavioral finance uses stories to explain financial phenomena. Signup and view all the answers

Storytelling and Policymaking in Economic Modelling

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