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Ludmila Palei<br> | |||
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Revision as of 00:47, 3 December 2007
Behavioral Economics
by:
Eli Brill
Katharine Burmeister
Sharyn Foster
Ludmila Palei
Stacie Smeal
"People tend to be happy when they live up to how they think they should be; and they are, correspondingly, unhappy when they fail to live up to those norms." George Akerlof
An Introduction to Economic Theory Before the Behavioral Approach: The Keynesian Approach
In his 2006 speech, "The Missing Motivation in Macroeconomics," George Akerlof, a Nobel Prize-winning economist, challenges some ideas about macroeconomics that were established by the well-respected John Maynard Keynes.
The five neutralities discussed by Akerlof are:
2. 1. The independence of consumption and current income.
3. The independence of investment and finance decisions
4. Inflation stability only at the natural rate of unemployment
5. The ineffectiveness of macro-stabilization policy with rational expectations
Bibliography Akerlof, George A. "The Missing Motivation in Macroeconomics". [1]
