Multiplicative effects of the gaps of rationality

Abstract

The author examines the negative impact of rationality gaps on the country’s economic development and economic security. The relationship between the gaps of rationality and the mechanism of the investment multiplier is analyzed. The article defines the notion of «the gap of rationality,» three types of the gaps of rationality. The definition of the effects of the multiplier and the accelerator of investment is given. It is indicated that the relationship between the multiplier and the accelerator of investments is complex, fractal in nature. Inside the mechanism of the investment multiplier there are components, both strengthening and weakening its effect. It is revealed that people with irrational behavior do not realize their irrationality. With the gaps of rationality, people can realize the irrationality of their behavior, but they continue to behave irrationally. The gaps of rationality lie in the fact that the goal is not a sufficient reason for carrying out actions. Decision-making does not automatically mean the appropriate action. Even after making a decision and starting the action, we can not expect that it will automatically end. The article proves that the multiplicative effect enhances the negative impact of rationality gaps on the economy. Specific directions of this influence are considered depending on the type of the gaps of rationality. For each direction, the negative effect of the multiplier effect generated by the gaps of rationality is described. As a result of the study, it was concluded that the negative impact of human irrationality on economic processes must be studied in conjunction with the spread of multiplicative effects in the economy. Keywords: the multiplier of autonomous spending; the accelerator o