Professor David Tuckett is Director of UCL’s Centre for the Study of Decision-making Uncertainty, supported by INET and the Institute of Psychoanalysis in London. Trained in Economics, Medical Sociology and Psychoanalysis he is Professor in the Faculty of Brain Sciences and a practicing psychoanalyst.” His book Minding the Markets: An Emotional Finance View of Financial Instability opened new ways of thinking about Economics and Finance and he has also written a monograph published by the Research Foundation of the CFA Institute. He used an inaugural INET grant to develop a new approach to decision making under deep uncertainty; Conviction Narrative Theory and Directed Algorithmic Text Analysis. The approach made it possible to develop core indicators of relative sentiment shifts in text narratives. An outstanding feature of these new findings is that the measures of emotion, which are entirely different to those used in conventional sentiment analysis, are orthogonal to economic news content, demonstrating statistically for the first time that emotional shifts in narratives Granger-cause major economic variables and indicate the growth of financial risk.

By this expert

Why Observation of the Behaviour of Human Actors and How They Combine Within the Economy, is an Important Next Step.

Paper Conference paper | | Oct 2017

One might think of the satisfied consensus reigning in macroeconomics before the financial crisis (and still relatively entrenched) as evidence of “Groupthink” in a “Divided State”

How Dated Theories & Underlying Research Misguide Policy

Article | Jul 15, 2015

The financial crisis of 2008 was unforeseen to a significant extent. One reason is that the dominant academic theories influencing political decision makers ignore recent advances and instead rely largely on models and decision science dating back to the Second World War.

Information and Economics: A New Way to Think About Expectations and to Improve Economic Prediction.

Paper Conference paper | | Apr 2015

The largely unexpected arrival of the global economic crisis and the largely unpredicted slowness of the recovery from the Great Recession should be precipitating an intellectual crisis across economics and policy making. We require additional theories and additional methods to detect how an economy is evolving and to provide the basis for policy intervention (Haldane, 2014).

Irreducible Uncertainty and its Implications: A Narrative Action Theory for Economics.

Paper Conference paper | | Apr 2013

At the heart of economics is a theory of action. It reflects views about how human beings make economic decisions and leads to an analysis of aggregate consequences.

Featuring this expert

Reawakening

From the Origins of Economic Ideas to the Challenges of Our Time

Event Plenary | Oct 21–23, 2017

INET gathered hundreds of new economic thinkers in Edinburgh to discuss the past, present, and future of the economics profession.

Financial Instability Mini-Documentary

Video | Apr 14, 2012

Financial stability, or the lack thereof.

How Investors Use Stories to Tame Uncertainty

Video | Jul 4, 2011

If you want to understand how fund managers choose a portfolio, why not ask them?