Task: Critically evaluate theoretical explanations of behaviour at one level of aggregation.
Aspects which need to be included are:
• Define a level of aggregation (individual, firm, state or supranational or international
institutions)
• Choose one theory and explain with the help of this theoretical viewpoint the behaviour
at the selected aggregate level, for instance, bounded rationality in the case of individual
behaviour
• Explore the role of risk and uncertainty at this level of aggregation.
• Identify advantages and disadvantages of this theory evidenced with academic literature.
• Show evidence for these advantages and disadvantages with the help of empirical data.
This can include government reports, statistics, interviews conducted by reputable
organizations and practitioner literature.
• Depending on your provided discussion conclude if the evidence supports the theoretical
assumptions or if not in which case you would need to suggest another theoretical
viewpoint.
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