Month: February 2016

Dr. Antonios Antoniou: An Introduction to Applied Economics

Financial Research, Training Consulting pic
Financial Research, Training Consulting

A former Professor of Finance and specialist in behavioural and applied economics, Dr. Antonios Antoniou holds a Bachelor of Arts in Economics, a Master of Science in Accounting and Finance, and a Doctor of Philosophy in Applied Economics. As a pioneer of doctoral programmes in finance and the CEO and Consultant at Financial Research, Training & Consulting, LLP, Dr. Antoniou has amassed considerable experience in a wide range of economic and financial disciplines and theories. He holds a particular interest in applied economics, the subject of his doctoral research.

Basically, the term “applied economics” refers to the practice of using economic theory and analysis to evaluate real-world problems and address practical issues. Applied economics, therefore, can influence a variety of other fields, including labour economics, industrial organisation, public economics, development economics, and economic history. Economists approach application of the theory in a number of different ways. Case studies, historical analogy, input-output analysis, and empirical estimation through the use of econometrics are four possible approaches.

The origins of applied economic theory can be traced back to French economist Jean-Baptiste Say and British philosopher John Stuart Mill, but the first use of the term “applied economics” can be attributed to British economist J.N. Keynes. In The Scope and Method of Political Economy, Keynes argued for replacing what had previously been known as the “art of political economy” with the name “applied economics,” in order to emphasise the practical use of the discipline. Additionally, he endeavoured to distinguish the real-world application of economic theory from the abstract scientific origins of the theory itself.

Later economists, such as Vilfredo Pareto, Léon Walras, and Joseph Schumpeter, argued for different, specific definitions of the discipline. However, most modern economists agree on the general view that applied economic theory involves reducing the abstraction of the core elements of pure economics to make a scientific analogy between abstract concepts and real-world situations. A very basic example of such an analogy would be to apply broad economic theory to analyze the financial situation of a single household. There is no limit to the depth and complexity of the theoretical analogy or the value of applied economics in general.

For more information on applied economics and other related financial topics, refer to the many articles published by Dr. Antonios Antoniou in leading peer-reviewed journals or peruse his co-authored books.

Negotiation Types and Its Impact on Final Agreements

Negotiation Types pic
Negotiation Types

Former professor Antonios “Tony” Antoniou has dedicated much of his career to teaching students about finance and economics. Antonios Antoniou now serves as CEO of Financial Research, Training & Consulting, LLP. He has particular interest in topics that answer how economics is used in conflict resolution.

As an economics concept, negotiating consists of complex discussions and compromise to an agreement. There are two types of negotiations, distributive and integrative. The latter takes a win-win approach, in which all parties make decisions that are equally beneficial to all. Integrative negotiation, also known as collaborative or transformative, can include non-monetary benefits and trades that help balance a deal’s final outcome.

Conversely, distributive negotiation results in one party receiving more than another, thus creating winners and losers. This is basically a zero-sum game, which means no additional factors can be considered or offered.

For example, an integrative negotiation regarding budget cuts may result in all parties agreeing to take a minor loss in order to avoid major financial strain to a single party. However in distributive negotiation, no party would agree to these terms. Rather than yielding a loss for all involved, negotiations would continue until one side successfully achieves a more beneficial outcome for itself.