The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis?
The Icelandic economy collapsed dramatically in the fall of 2008, making the country one of the first victims of the sharp economic downturn that hit most of the West. The Icelandic crisis may serve as an especially illuminating case study of the psychology of economic booms and busts. We offer an a...
Published in: | Analyses of Social Issues and Public Policy |
---|---|
Main Authors: | , |
Format: | Article in Journal/Newspaper |
Language: | English |
Published: |
Wiley
2014
|
Subjects: | |
Online Access: | http://dx.doi.org/10.1111/asap.12051 https://api.wiley.com/onlinelibrary/tdm/v1/articles/10.1111%2Fasap.12051 https://spssi.onlinelibrary.wiley.com/doi/pdf/10.1111/asap.12051 |
id |
crwiley:10.1111/asap.12051 |
---|---|
record_format |
openpolar |
spelling |
crwiley:10.1111/asap.12051 2024-06-02T08:09:21+00:00 The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? Thórisdóttir, Hulda Karólínudóttir, Karen Erla 2014 http://dx.doi.org/10.1111/asap.12051 https://api.wiley.com/onlinelibrary/tdm/v1/articles/10.1111%2Fasap.12051 https://spssi.onlinelibrary.wiley.com/doi/pdf/10.1111/asap.12051 en eng Wiley http://onlinelibrary.wiley.com/termsAndConditions#vor Analyses of Social Issues and Public Policy volume 14, issue 1, page 281-310 ISSN 1529-7489 1530-2415 journal-article 2014 crwiley https://doi.org/10.1111/asap.12051 2024-05-03T11:11:51Z The Icelandic economy collapsed dramatically in the fall of 2008, making the country one of the first victims of the sharp economic downturn that hit most of the West. The Icelandic crisis may serve as an especially illuminating case study of the psychology of economic booms and busts. We offer an analysis of the buildup and aftermath of the economic crisis in Iceland using theories and findings from social psychology and related disciplines. During the buildup, at the national level we focus on strong national identity, high levels of trust, and system justification. At the group level, we discuss homogeneity of bank employees, group identity, and organizational culture. At the individual level the focus is on motivated reasoning and cognitive heuristics. During the aftermath at the national level, the primary focus is on collective action and the ascent of women into power. At the individual level we discuss changes in values, and report on a study in which we examined people's perceptions of what caused the crisis and how it relates to political ideology. We conclude by considering several behaviors not accounted for in our analysis and some policy implications that can be gleaned from the analysis. Article in Journal/Newspaper Iceland Wiley Online Library Analyses of Social Issues and Public Policy 14 1 281 310 |
institution |
Open Polar |
collection |
Wiley Online Library |
op_collection_id |
crwiley |
language |
English |
description |
The Icelandic economy collapsed dramatically in the fall of 2008, making the country one of the first victims of the sharp economic downturn that hit most of the West. The Icelandic crisis may serve as an especially illuminating case study of the psychology of economic booms and busts. We offer an analysis of the buildup and aftermath of the economic crisis in Iceland using theories and findings from social psychology and related disciplines. During the buildup, at the national level we focus on strong national identity, high levels of trust, and system justification. At the group level, we discuss homogeneity of bank employees, group identity, and organizational culture. At the individual level the focus is on motivated reasoning and cognitive heuristics. During the aftermath at the national level, the primary focus is on collective action and the ascent of women into power. At the individual level we discuss changes in values, and report on a study in which we examined people's perceptions of what caused the crisis and how it relates to political ideology. We conclude by considering several behaviors not accounted for in our analysis and some policy implications that can be gleaned from the analysis. |
format |
Article in Journal/Newspaper |
author |
Thórisdóttir, Hulda Karólínudóttir, Karen Erla |
spellingShingle |
Thórisdóttir, Hulda Karólínudóttir, Karen Erla The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
author_facet |
Thórisdóttir, Hulda Karólínudóttir, Karen Erla |
author_sort |
Thórisdóttir, Hulda |
title |
The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
title_short |
The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
title_full |
The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
title_fullStr |
The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
title_full_unstemmed |
The Boom and the Bust: Can Theories from Social Psychology and Related Disciplines Account for One Country's Economic Crisis? |
title_sort |
boom and the bust: can theories from social psychology and related disciplines account for one country's economic crisis? |
publisher |
Wiley |
publishDate |
2014 |
url |
http://dx.doi.org/10.1111/asap.12051 https://api.wiley.com/onlinelibrary/tdm/v1/articles/10.1111%2Fasap.12051 https://spssi.onlinelibrary.wiley.com/doi/pdf/10.1111/asap.12051 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Analyses of Social Issues and Public Policy volume 14, issue 1, page 281-310 ISSN 1529-7489 1530-2415 |
op_rights |
http://onlinelibrary.wiley.com/termsAndConditions#vor |
op_doi |
https://doi.org/10.1111/asap.12051 |
container_title |
Analyses of Social Issues and Public Policy |
container_volume |
14 |
container_issue |
1 |
container_start_page |
281 |
op_container_end_page |
310 |
_version_ |
1800755047692238848 |