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Topic: Mental accounting

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	Mental accounting - Wikipedia, the free encyclopedia
		Mental accounting theorists argue that people group their assets into a number of non-fungible mental accounts.
		In mental accounting theory, framing means that the way a person subjectively frames a transaction in their mind will determine the utility they receive or expect.
		This concept is similarly used in prospect theory, and many mental accounting theorists adopt that theory as the value function in their analyses.
	en.wikipedia.org /wiki/Mental_accounting (457 words)

	Mental Accounting
		"Mental accounting: Thaler (1980) and Kahneman, Knetch and Thaler (1991)."
		HENDERSON, P.W. and R.A. Mental accounting and categorization.
		HIRST, D.E., E.J. JOYCE and M.S. Mental accounting and outcome contiguity in consumer-borrowing decisions.
	mental-accounting.behaviouralfinance.net (588 words)

	GAO-03-865T, Child Welfare and Juvenile Justice: Several Factors Influence the Placement of Children Solely to Obtain ...
		In other instances, some mental health agencies and schools have limited resources to provide mental health services and are required to serve children with a mental illness in the least restrictive environment possible--which can limit the alternatives available to parents who believe their children need residential placements.
		Mental health agencies used a variety of strategies to control costs, such as reducing spending, requiring that services covered by Medicaid be approved before they are provided, and limiting the number of children served.
		However, mental health officials who work with children attending some of these schools reported that schools often have a narrow definition of educational progress and do not recognize that inappropriate behavior might be a symptom of mental illness.
	www.gao.gov /htext/d03865t.html (9879 words)

	Title V MCH Needs Assessment Fact Sheets - Comprehensive Mental Health Services and Systems
		Disparities: 1-3% of adolescents in the general population are diagnosed with depression compared to 15% of teenagers with asthma and 25% of children and teenagers with inflammatory bowel disease [7].
		Mental disorders were the second leading cause of hospitalization for youth aged 15 to 19 years old - accounting for 33,000 hospital days and 45 million dollars [13].
		The Minnesota Department of Human Services has implemented mental health screening for children found to be at the greatest risk such as: developmental assessment of children 0-3 who have been abused/neglected, homeless children, delinquent children, children in need of protection, and youth in chemical treatment [17].
	www.health.state.mn.us /divs/cfh/na/factsheets/mentalhealthsys.html (1808 words)

	Metal accounting in local public sector budgeting: An empirical analysis for the flemish municipalities Eastern ...
		Therefore, the suggestion by Hines and Thaler [1995] to explain the flypaper effect in terms of mental accounting is appealing if only because of its generality, which also explains the related anomalies in taxation and debt financing.
		The purpose of this paper is to present an empirical analysis of mental accounting in the local public sector.
		A crucial component of mental accounting involves categorization: expenditures and funds are grouped into categories that are not perfect substitutes, thus violating the fungibility assumption which underlies conventional rational choice theory.
	www.findarticles.com /p/articles/mi_qa3620/is_199810/ai_n8814459 (887 words)

	Virginia Commission on Youth - Mental Retardation
		The threshold for mental retardation is typically set at 70, and experts generally agree that scores of 71-75 are only consistent with mental retardation when significant deficits in adaptive behavior are present (Szymanski and King).
		“Mental retardation” should not be used interchangeably with the term “developmental disability.” A developmental disability is not a medical term, but is instead a legislative concept referring to a broad spectrum of disorders, including mental retardation, epilepsy, and autism.
		Mentally retarded children are particularly vulnerable to abuse given their high level of dependency and their tendency to want to please others, as well as lack of understanding of their rights.
	coy.state.va.us /Modalities/retardation.htm (4662 words)

	winterspeak.com
		Question: Mental accounting, to the extent that it violates fungibility, is (according to economic theory) irrational.
		Mental accounting (concave value gains, steeper and convex value losses, the endowment effect, transaction utility, and multiple accounts for purchases) might make people better off in a primitive "caveman" society characterized by subsistence living, zero capital formation, a barter economy, and no law except for trust and coercion within your small community.
		The same mechanism of mental accounting that separates and controls private indulgence versus public thrift may have been recruited to handle the broader variety of tasks we need to juggle in our more complex world today.
	www.winterspeak.com /2003_11_03_archive.html (1143 words)

	Mental Health at LSHTM - Why Mental Health?
		The WHO estimate that 10% of the adult population worldwide suffer from mental disorders at any one time, with mental disorders accounting for four of the ten leading causes of life lived with disability.
		Mental disorders are treatable in the developing world with cheap and technologically simple interventions.
		The overwhelming majority of the 400 million persons with mental disorders globally are not being provided with even the most basic mental health care than we know they should and can receive.
	www.lshtm.ac.uk /research/mentalhealth/why.html (275 words)

	[No title]
		The role of accounting in public organizations is expanding, however, as a consequence of the increased attention in recent years to the need for greater economy, efficiency, and effectiveness in the operations of government.
		Although accounting data may be used as a basis for future plans (for example, for budget building), financial accounting is concerned primarily with the historical results of fiscal transactions and the consequent financial position of some organ-izational entity.
		Cost accounting procedures ensure the proper recording of cost flow by assembling and recording all elements of expense incurred to attain a purpose, to carry out an activity, operation, or program, to complete a unit of work or project, or to do a specific job.
	www-personal.umich.edu /~steiss/page6.html (2066 words)

	State Laws Mandating or Regulating Mental Health Benefits (Site not responding. Last check: 2007-11-02)
		Mental health services have been one significant part of medical care for a number of years.
		Mental, nervous, or emotional disorders and alcoholism and substance abuse.
		The law, otherwise known as the Mental Health Parity Act of 1996 (Public Law 104-204, see text online), prohibits group health plans that offer mental health benefits from imposing more restrictive annual or lifetime limits on spending for mental illness than are imposed on coverage of physical illnesses.
	www.ncsl.org /programs/health/Mentalben.htm (2564 words)

	FPA Journal - Effective Financial Planning in the Presence of Judgmental Heuristics (Site not responding. Last check: 2007-11-02)
		Mental accounting is a concept that is receiving more attention due to the efforts of behavioral economists such as the University of Chicago’s Richard Thaler.
		The accounting goes something like this: The individual determines that the capital committed to certain investments is not “real” money because a significant portion of that capital is investment earnings that resulted from the individual’s skill.
		Practitioners should actively seek to identify their client’s use of mental accounting—good and bad—throughout the advisory process and take appropriate steps to garner the advantages of such thinking while minimizing the effects of the negative aspects.
	www.fpanet.org /journal/articles/2000_Issues/jfp0400-art15.cfm (3287 words)

	exploreCO
		Mental accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities.
		A second component of mental accounting involves the assignment of activities to specific accounts.
		The third component of mental accounting concerns the frequency with which accounts are evaluated and 'choice bracketing'.
	www.manyworlds.com /exploreCO.aspx?coid=CO1017021317708 (293 words)

	Nick Szabo -- The Mental Accounting Barrier to Micropayments (Site not responding. Last check: 2007-11-02)
		The mental accounting costs for a typical on-line consumer seem to be somewhat higher than those in more familiar areas of commerce.
		Software would have to let the shopper determine and input his volume preference curve (in some intuitively familiar way, without presupposing the shopper is familiar with economic theory) before it could adequately act in his interests; not to mention the complications of temporal preferences, nonlinear interactions between commodities fungible when in isolation, and so on.
		There may be agents that can do some of the accounting (eg comparing payments made to terms promised, payment limits, etc.), but for the vast majority of products and services software cannot judge the quality or personal desire for the product or service, and thus the net desirability of the transaction.
	szabo.best.vwh.net /micropayments.html (1885 words)

	ALLPM Project Management
		When a project manager negotiates for an incentive from the sponsor for completing the project ahead of schedule but never pays attention to the ‘free float’ or ‘total float’ of the project tasks, then that is ‘mental accounting’ at work.
		The authors distinguish between economic accounting, where sunk costs are ignored, and mental accounting, where the sunk costs are included.
		The authors argue that the managerial reluctance to abandon arises from a process called ‘framing’ (in which the manager forms a mental account including the sunk cost) combined with prospect theory and regret aversion.
	www.allpm.com /print.php?sid=1577 (1642 words)

	How people trick themselves into overspending
		Keeping mental accounts of one's money is a common method of controlling spending, Cheema says, even though in some cases it makes it easier to over-spend.
		This is when consumers buy something, debit the transaction account by the amount paid for the item, and later credit the account by the benefit they get from using the item.
		That kind of accounting can get sticky, but the real trouble is caused by when people don't know how to categorize their purchases.
	news-info.wustl.edu /news/page/normal/4998.html (798 words)

	Improving Disability Data for Policy Use - Materials: Paper from China (3)
		The results are as follows: 66,888 households had members with disabilities, accounting for 18.10% of the total.
		And there were 77,343 persons with visual, hearing, mental, physical disabilities, mental illness and multi-disabilities, accounting for 4.90% of the total.
		The survey provided Chinese government with information concerning persons with disabilities as the scale, regional distribution, cause of disabilities and their medical treatment, rehabilitation, education, employment, marriage, families and participation status in social life etc., which offered reliable basis for the formulation of disability-related laws, regulations, policies, principles and working programs.
	www.unescap.org /STAT/meet/widd/paperchina3.htm (707 words)

	Fiscal/Accounting Duties
		It is his/her responsibility to account for the millions of dollars received each year by each County and to issue warrants (checks) in payment of all County obligations, including the distribution of tax dollars to the townships, villages, cities, school districts and library systems as well as other county agencies.
		The Auditor's General Accounting Department is the watchdog over all county funds and maintains the official records of all receipts, disbursements and fund balances.
		It is the Auditor's responsibility to serve as the paymaster for all County employees.
	www.co.champaign.oh.us /auditor/html/fiscal_accounting_duties.html (837 words)

	University of Wisconsin - Whitewater
		The accounting program at UW-Whitewater is designed to prepare accounting majors to begin their professional careers in any area of their choice: public, industrial, or govern-mental accounting.
		The accounting student pass rate on the Uniform CPA Examination is two to three times the national average of 15 percent.
		An extensive internship program is available to accounting students to provide them with valuable exposure in deciding which area of accounting they would like to pursue upon graduation.
	www.uww.edu /factsheets/run/factsheet.php?id=17 (631 words)

	U.S. Senator Patty Murray - VA Undersecretary Calls Mental Health Care âVirtually Inaccessibleâ
		It is estimated that one third of Iraq and Afghanistan veterans face mental health challenges upon their return.
		In addition, with an estimated one third of the 1.3 million Americans who have served in Iraq and Afghanistan facing mental health challenges upon their return, I am concerned that they are not getting the services they need.
		I would like the VA to provide a report of the number of veterans requiring mental health services from the VA and what number of those requests are being filled.
	murray.senate.gov /news.cfm?id=256085 (695 words)

	SSRN-Do Investors Integrate Losses and Segregate Gains? Mental Accounting and Investor Trading Decisions by Sonya Lim (Site not responding. Last check: 2007-11-02)
		In addition, the extent to which mixed sales of winners and losers are consistent with the hedonic editing hypothesis is greater than what would be expected under random sales of stocks.
		These results suggest that mental accounting is likely to play a significant role in investors' trading decisions.
		Mental Accounting and Investor Trading Decisions" (November 19, 2004).
	papers.ssrn.com /sol3/papers.cfm?abstract_id=423942 (260 words)

	0688 - CHIEF, ACCOUNTING DIVISION, MENTAL HEALTH (Site not responding. Last check: 2007-11-02)
		The incumbent must possess a specialized knowledge of accounting and accounting systems necessary for the planning, development, and revision of processing systems, a knowledge of the principles of supervision and management, and an understanding of mental health funding sources and treatment delivery systems.
		Reviews and assists with the development of mental health service agreements and contract language to ensure provisions are consistent with complex mental health funding policies, mandates, laws, regulations, and County fiscal policies and procedures.
		Graduation from an accredited college or university with twenty-one units of accounting including at least two courses in cost accounting, governmental accounting, auditing, or equivalent accounting education -AND- Two years of professional accounting or auditing experience at the level of Los Angeles County's class of Accounting Officer II or higher.
	www.lapublichealth.org /dhr/public/cs/csdetail.cfm?item=0688 (388 words)

	[No title] (Site not responding. Last check: 2007-11-02)
		Students are expected to understand: the economic forces which motivate the transactions, the theory behind the accounting, the issues covered in class, and the technical computations necessary to record the transactions in the financial statements.
		Second, a survey of the different accounting policies and approaches among nations is presented, with the focus on interpreting of differences in reporting practices across countries and their implications for valuation and analysis.
		The primary audience for this course is students whose careers require an ability to interpret and analyze financial statement disclosures (such as investment banking or financial analysis), but the course is also useful for careers where a critical analysis of financial performance is important (such as consulting or general management).
	www.csom.umn.edu /Page1407.aspx (1611 words)

	Discovery @ Olin (Site not responding. Last check: 2007-11-02)
		These accounts allow consumers to write off the cost of a transaction, such as an $800 mountain resort vacation, against the benefits from it, such as spending time skiing and hiking.
		In the third experiment, the researchers manipulated ambiguity in the classification of expenses and studied how people were able to justify spending in the presence of ambiguity but were constrained by budgets in the absence of it.
		Consumers, noted the researchers, are motivated to define expenses, and shape mental accounts, in a way that allows them to do what they want to do rather than what they should do.
	www.olin.wustl.edu /discovery/printerformat.cfm?sid=477 (395 words)

	What Is Dementia?
		Psuedodementia can also be caused by other mental illnesses such as Major Depressive Disorder and Psychosis.
		Mental Health Matters is using the articles with the approval of the Author.
		If you would like to submit an article, or if you are an author of an article posted on MHM that wishes the article to be removed, please email our Submission Department.
	www.mental-health-matters.com /articles/print.php?artID=57 (686 words)

	PopMatters \| Blogs \| Marginal Utility » Mental accounting (Site not responding. Last check: 2007-11-02)
		It seems like one of the most concrete ways to undermine the ideology and fetishism associated with money is to resist sentimentalizing it and regard it as sheer quantity at all times; in other words, to think like a hyperrational economist whenever possible.
		But Surowiecki sees mental accounting as an irrational way we protect ourselves from even more irrational behavior.
		It seems more likely that the flexibility of expression involved in mental accounting allows one to conceptualize goals that are more important to individuals than making the most money possible.
	blogs.popmatters.com /marginalutility/2006/02/16/mental-accounting (414 words)

	Table of Contents for Marketing Science Vol: 17 Number: 1
		Abstract: Abstract In the standard economic account of consumer behavior the cost of a purchase takes the form of a reduction in future utility when expenditures that otherwise could have been made are forgone.
		We propose a "double-entry" mental accounting theory that describes the nature of these reciprocal interactions between the pleasure of consumption and the pain of paying and draws out their implications for consumer behavior and hedonics.
		A central assumption of the model, which we call prospective accounting, is that consumption that has already been paid for can be enjoyed as if it were free and that the pain associated with payments made prior to consumption (but not after) is buffered by thoughts of the benefits that the payments will finance.
	informs.org /Pubs/ABSTRACTS/Mar17_1.html (2650 words)

	Mental Accounting and Changes in Price: The Frame Dependence of Reference Dependence
		Mental accounting principles for multiple events were replicated and then extended to pricing situations that were designed to moderate these principles if reference dependence is proportional (i.e., if consumers evaluate events in terms of proportional deviations from reference states rather than raw deviations).
		Prices were stated with or without popular percentage-based pricing frames such as "33 percent off." Mental accounting principles generally prevailed in the absence of percentage-based frames.
		The findings demonstrate that mental accounting principles, price perception, and reference dependence are sensitive to the ways in which deviations from reference states are framed.
	ideas.repec.org /a/ucp/jconrs/v22y1995i1p90-97.html (267 words)

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