Behavioural and Experimental Economics Cluster 

The Department of Economics and Finance has a strong contingent of scholars doing research within the broader topic of behavioural economics. In the 'Behavioural Economics Research Cluster’, research explores how psychological, emotional, and social factors influence economic decisions and challenges the traditional assumption that individuals act purely rationally to maximise utility. It examines how cognitive biases, such as overconfidence and loss aversion, and mental shortcuts – known as heuristics – lead to deviations from rational behaviour. Using insights from disciplines such as psychology, behavioural economics uses experimental methods to study decision-making by focusing on factors such as emotions and social influences and how they impact economic choices. This understanding helps design policies and interventions (or ‘nudges’) to encourage better decision-making in areas such as savings, health, and consumption.

For more information, please contact
Prof Sevias Guvuririo
E: GuvuriroS@ufs.ac.za

Financial Services Cluster 

Given the expertise in finance and banking, the Department of Economics and Finance has a focused research agenda on the broader topic of financial services, called the ‘Financial Services Research Cluster’. Previous research has focused on developments and trends in financial markets, but a new avenue of investigation is that of ‘Behavioural Banking’, which is an approach that applies principles from behavioural economics to better understand and influence customer behaviour in the financial services sector. It recognises that the financial decisions of customers are often shaped by psychological, emotional, and social factors rather than purely rational drivers. In essence, banks will be able to design personalised, customer-centric products and services that align with real customer needs and preferences. Due to it relying heavily on principles in behavioural economics, it involves the use of nudges to improve the utility of financial decision-making within the context of the bank-customer relationship. The implications are both on the utility of customers, as well as the processes and offerings of banks and how the latter ‘reward’ customers on the basis of the quality of their financial decision-making.

For more information, please contact
Prof Johan Coetzee
E: coetzj@ufs.ac.za

City-Region Economies Cluster 

The Department of Economics and Finance is proud to have Prof Ivan Turok appointed as SARChI chair in ‘Strengthening Urban Economies: People, Place, Production and Policy 2020-2024’ within the department. Assisted by Prof Justin Visagie, the research focuses on strengthening urban economies and understanding the factors that drive economic development in cities and the challenges that hinder it, with the explicit aim of informing better policy for governments, the private sector, and civil society. Cities are seen as platforms for progress due to the productivity and creativity generated by agglomeration, but the challenge is that urbanisation does not automatically lead to prosperity or inclusion. The focus of the ‘City-Region Economies Cluster’ is therefore to examine how demographic and economic shifts within South Africa's urban system impact city development, as well as how the role of key economic sectors and occupations drive local growth through various spatial dynamics. It also explores the importance of strategic urban assets such as transport systems to support economic activity.

For more information on the SARChI Chair, please click here 

For more information, please contact
Prof Johan Coetzee 
E: coetzj@ufs.ac.za