Distinguished Lecture on Economics in Government: Public Policy, Values, and Consciousness
Economists should pay more attention to value formation in economic analysis. First, preferences are not stable in any operationally meaningful sense. Any estimated micro behavior that does not take account of the consequences of the behavior on underlying preferences is incapable of serving as a guide to future action. Second, the economist's model of human psychology is inaccurate and misleading. Third, most analyses of complex social behavior start from models incapable of producing empirical results adequate for useful structural analyses. The paper suggests avenues for making progress on each of these issues, beginning with a different approach to utility maximization.
Volume (Year): 8 (1994)
Issue (Month): 2 (Spring)
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-319, June.
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- M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
- Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
- Thaler, Richard H & Shefrin, H M, 1981.
"An Economic Theory of Self-Control,"
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- Richard J. Herrnstein & Drazen Prelec, 1991. "Melioration: A Theory of Distributed Choice," Journal of Economic Perspectives, American Economic Association, vol. 5(3), pages 137-156, Summer.
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