▼ This paper builds on a minority view that consumer theory should include social variables rather than omit them. Using the theories first proposed by Thorstein Veblen and James Duesenberry this study analyzes the role which emulation plays in the U.S. Savings Paradox. At the micro level, an individual's amount of savings was estimated with the 2004 Survey of Consumer Finances. By using consumer debt as the proxy for emulation, the results find that changes in individual and aggregate savings can be explained by emulative consumption. Furthermore, the consumption externalities from emulation were shown to granger cause income inequality, which in turn granger caused the personal savings rate. The results confirm the minority view that consumption behavior is dependent on others. It appears that the U.S. Savings Paradox is the result of increased emulative consumption. For that reason, consumer theory needs can longer omit relevant social variables. Advisors/Committee Members: Quinn, Dr. Kevin.

▼ This thesis examines F.A. Hayek’s evolutionary theory. Much of his work in this field can be seen as a rejection of the Austrian School of economics, of which he is a central contributor. This thesis begins with background on Austrian economics. Understanding the tenets of this school uncovers the controversy in Hayek’s evolutionism. Three important contentions follow. First, Hayek’s theory of cultural evolution is the extension of Lamarckism from the biological realm to the social arena. Lamarckian evolution is the ‘inheritance of acquired characteristics.’ Secondly, Hayek underestimates the contribution to evolutionary economics that is made by Charles Darwin. This thesis examines the reasoning for this underestimation, citing Hayek’s alignment with the Scottish moral philosophers and Darwinian rejection of individual choice as the contributing factors. Finally, this thesis reconciles Hayek’s group selection with methodological individualism and Austrian economics. This is done through Ulrich Witt’s reductionist method. Advisors/Committee Members: Quinn, Kevin J.

▼ This thesis examines the genesis of states, defined as territorial monopolists of violence with dominance hierarchy structures. Drawing from research in evolutionary psychology and anthropology, this paper uses game theory models to demonstrate under what conditions aggression, coalition-building, property, hierarchies, and territoriality are dominant strategies when humans are in competition over scarce resources. The paper also provides anthropological evidence that humans and their hominid ancestors faced these conditions in the environment of evolutionary adaptedness, explaining the emergence of aggression, rule-like behavior, coalitions, territoriality, and hierarchies among hominids. As the materialization of aggressive forces, the aggregation of these dominant strategies may be what we have come to call "states". It is concluded that the state as a mode of social organization is a stable equilibrium toward which humans invariably gravitate, explaining why humans do not live in a world of pure anarchism. Advisors/Committee Members: Quinn, J. Kevin.

▼ The current financial crisis has had significant global impact. Even Dubai, with its constant high growth rates is not exempt from the economic recession. Surprisingly, Dubai's hit was delayed but still with the full impact of the crisis. This study examines the case of the development of Dubai's financial cluster and determines which of its problems are self-induced and which can be explained by Porter's (1998) competitive diamond. With support of the existing literature provided by Krugman (1991), Sölvell et al. (2003), and Weber (1929) and the examination of three financial and IT clusters, it was possible to develop nine characteristics essential for the success of cluster formation that could have reduced the likelihood of an economic failure. The model of nine characteristics serves as a comparison to Porter's (1998) competitive diamond which was applied aggressively through Dubai's cluster initiative. Consequently, the nine characteristics exposed significant weaknesses of Porter's diamond explaining Dubai's financial problems as an emerging cluster. This paper seeks to explain the current economic situation of Dubai in combination with Porter's competitive diamond concept. Advisors/Committee Members: Carroll, Dr. Michael C.