I just returned from the meetings of the European Economic Association (EEA) in Glasgow. It was a good opportunity to assess the state of economics (as a science) after the collapse of the global financial system in 2008. As remarked by Phil Mirowski in a recent article, the state of economics is not very good…
Category: Methodology of economics
Limitations of behavioral economics
Over the past months during the current economic recession and financial crisis, there has developed a published opinion as if so-called behavioral economics could explain the crisis. Behavioral economics emanates from observations in economic and game theoretic experiments that human subjects do not behave rationally, but are clearly bounded in their reasoning about decisions. Subjects…