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Animal spirits in modern economics has a specific meaning; it refers to the restless and inconsistent element in the economy as well as the peculiar relationship people have with ambiguity and uncertainty, which tends to lead to paralysis or incredible confidence and energy in decision‐making and risk taking. Animal spirits have also been used to explain peaceful periods and instability or interpret track records of success and periods of disarray or spectacular failure, high levels of trust and confidence or extreme pessimism and distrust. Willingness to undertake extreme effort or self‐sacrifice to get things done is another expression of animal spirits, which can again go in the opposite direction with people shirking responsibilities, and practicing generalized selfishness or individualism. Such behaviours can have visible effects on the performance of public agencies or civil service agencies, in the behaviour of leaders in the public or private sector, or in the economic performance of a country. Differences across agencies and countries over time can also be explained if one is able to distinguish the effect of animal spirits. Using a logistic model, this paper tests for the existence of “animal spirits” in the capacity development interventions spearheaded by the African Capacity Building Foundation (ACBF)‐funded institutions. The analysis and findings highlight, amongst others, the importance of non‐economic factors in shaping the capacity development sphere. Understanding this nature of animal spirits is critical to designing and implementing effective programs for capacity development in Africa. It is particularly important to focus on issues of leadership and leadership development, including the capacity for leaders to instil confidence and piece together stories that motivate people into a common vision of the future or to achieve common objectives.

The purpose of this paper is to better depict the features of individual and group behaviors in sequential decisions under the effect of public belief drift.

In this paper, the authors design a two‐shots game which is closer to decisions condition in the real market by using the method of experimental economics two shots game.

The experimental results show that information cascade occurs more frequently in the second stage and the decision accuracy is decreased. The conclusion may provide experimental evidence for the “Animal Spirits Theory” of Keynes. Additionally, decision‐maker ranking in the middle of the decision sequence systematically deviates from his/her private information in balance state.

As existing information cascade theory of one shot decision fails to describe the belief‐dependent mechanism, the authors design the multi‐shots information cascade experiment; in which every individual decision maker has more than one sequential decision chance on the same event.

Nahua ritual specialists of northern Veracruz, Mexico, portray spirit entities by cutting their images from paper. Paper cutting is an ancient craft in Mesoamerica that traces back to the pre-Hispanic era. The impetus to materialize the spirits in this way is the result of the highly abstract and pantheistic nature of the Nahua religious system. In pantheistic thought, the cosmos itself is the deity and all apparent diversity can be seen as different aspects or manifestations of a seamless sacred unity. The Nahua ritual specialist places the paper figures on elaborate altars where he or she dedicates special offerings to them. The fundamentally economic nature of Nahua ritual exchange is revealed – with the aid of ritual economy – through examination of multiple factors: the symbolic meanings of sacred chanting and altar construction, the role of religion in constituting Nahua ethnic identity in the face of domination by mestizo elites, and the ecological context that renders life precarious for indigenous horticulturalists of this region of Mexico.

This paper aims to discuss the crises of free market capitalism in terms of its understanding of human nature. It reveals how recent market madness can be attributed to certain elements of human nature.

The paper uses a conceptual and philosophical approach to analyze crises of free market capitalism. It links both success and failure of capitalism to its understanding of human nature. It compares and contrasts economic assumptions of human nature in conventional and Islamic economics. It attempts to explain the 2008 financial crisis through a comprehensive theory of human nature.

It sheds some light on the irrational aspect of human nature as the driving factor behind the 2008 financial crisis. It elaborates on the importance of knowing self for knowing human decisions in free market economy. It concludes with the need for a comprehensive theory of human nature to predict and prevent irrational and irresponsible behaviors of populist politicians, greedy capitalists and conspicuous consumers. The paper also reflects on the 2013 Nobel Prize in economics as a victory for the study of human nature.

The paper offers a new perspective to understand crises of free market capitalism.

The purpose of this paper is to utilise Vilfredo Pareto ' s Machiavellian-realist social theory to provide a distinctive realist philosophical understanding of entrepreneurial risk-taking. By doing so, this paper seeks to stimulate debate and encourage future empirical testing that has the potential to present a richer understanding of entrepreneurial risk-taking.

To establish that a realist perspective can help theorise entrepreneurship, the authors look through a modern day risk and uncertainty optic at the hidden mechanisms within the social world where enterprises operate. Looking from this unique standpoint, where the long established social theory is reinvigorated by contemporary risk philosophy within a shared realist paradigm, human nature equips entrepreneurs with certain “animal spirits” to muddle blindly and instinctually through their risk environments.

The paper argues that this combined perspective unlocks a much richer understanding of entrepreneurial risk-taking, in particular, by capturing more of its behavioural reality and despite our strong emphasis on the inaccessibility and hiddenness of the risk environment to the entrepreneur, by exploring the entrepreneur-risk environment fit in ecological terms.

The paper’s unique blend of the classical Italian social theory with the contemporary risk theory offers a novel ecological view of the entrepreneur’s blind (mal) adaptation to their risk environment.

The purpose of this paper is to offer a new theory of human nature to explain the happiness paradox of capitalism.

It is argued that happiness crisis in capitalism stems from the lack of full understanding of human nature which is like a black box from which key assumptions in capitalist market system are derived. The author attempts to unlock this black box in order to understand the failure of capitalism in bringing happiness.

As the success of capitalism comes from its partial understanding of human nature, its failure comes from its partial misunderstanding or exploitation of human nature. This leads to ignoring the needs and desires of certain elements of human nature for the sake of serving only the animal spirit and self‐centric ego. The proposed new theory offers a new understanding of happiness and its determinants. Comparing the human body to a luxury recreational vehicle (RV) and the elements of human nature to the companions on this vehicle, the theory suggests that an individual cannot be truly happy if he or she listens only to one of his/her residents while disregarding the others. The new theory offers better explanation for the 2008 financial crisis and the happiness paradox in wealthy nations. It also provides an underlining framework for the existing happiness theories.

The new theory needs to be tested through empirical studies.

The paper theoretically argues that that authentic happiness is possible if individuals listen to the voices of all elements of human nature and try to fulfil their needs and desires in a balanced manner.

The paper offers a new comprehensive theory on human nature.

This paper aims to draw the wisdom of the prohibition of Gharar through the lens of institutional and Post‐Keynesian economics.

This research applies the theoretical contributions of the Post‐Keynesian economics and the new institutional economics to clarify the dimensions of Islamic Gharar. This research attempts to see the divergence between theory and practice, looking at empirical data including the information from an interview with one of Indonesian Islamic banks.

The lens of institutional and Post‐Keynesian economics is useful to clarify two dimensions of Gharar; incompleteness of contracting and fundamental uncertainty associated with business. As for the latter dimension of Gharar, the tradition of Post‐Keynesian economics can distinguish “animal spirit in speculation” and “animal spirit in enterprise”, the latter of which should be carefully considered. However, the interview reveals a kind of difficulty for Islamic financial institutions to tackle “Murabaha syndrome”.

This research supports an opinion such that Islamic financial institutions are not necessarily discouraged to share the associated uncertainty with the small‐sized firms in the agricultural and industrial sector, so far as their “enterprise” is based on the Islamic business ethics.

Despite very significant discussions in the literature on the prohibition of Gharar as a fundamental principle of Islamic finance, less has been done to elaborate upon it through the lens of Post‐Keynesian economics which have greatly contributed to shedding analytical lights on “uncertainty”.