Prof. Dhami: shame and guilt basic emotions to understand economic behavior
Gurjit Singh/ royalpatiala.in/ Patiala
Prof. Sanjit Dhami, Professor of Economics, University of Leicester, UK, today, 23 December 2019, delivered a lecture on ‘Psychological and Social Motivations in Micro Finance Contracts: Theory and Evidence’ at Senate Hall, Punjabi University Patiala. Prof. Dhami, through economic modeling, argued that the main stream economic theory based on neo-classical edifice could not satisfactorily explain the basic motivations to human behavior. He used ‘Lab-in-Field Model’ for generating data from 400 borrowers of micro-finance from rural area of Pakistan. He used Individual Liability and Joint Liability approaches to make comparisons. It emerges that peer group pressure have strong bearing on the repayment decisions and success of enterprises started with micro-loans. In case of joint borrowing and repayment liability the guilt of not fulfilling the expectations of other partner determines the borrowing outcomes. Guilt and shame both are individually very powerful emotions. But in situation of presence of both the shame trumps the guilt. The shame-aversion appears more powerful than guilt-aversion. Dr. Dhami argued that the discipline of economics can learn much from other subjects like sociology, psychology and neurosciences. He stressed that future of economics as science depends upon its capacity to absorb ideas from neighboring sciences.
Prof. Dhami has published a very famous book on economics entitled Foundations of Behavioral Economic Analysis during 2016, which has greatly influenced the economic though process all over the world. With publication of said book, Dr. Dhami has emerged as front line economic thinkers.
Prof. B. S. Ghuman, vice Chancellor, Punjabi University made presidential remarks. Dr. Lakhwinder Gill, Professor of Economics welcomed and introduced the speaker. Professor Jagroop Kaur, Dean Faculty of Social Sciences presented the formal vote of thanks. Dr. Deepak Kumar, Assistant Professor, Department of Sociology conducted the stage. The lecture was organized jointly by office of Dean Research and Department of Sociology. The lecture was attended by faculty, researchers and students from the faculty of social sciences.