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Behavioral foundations for the Keynesian consumption function

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  • D'Orlando, Fabio
  • Sanfilippo, Eleonora

Abstract

This paper has two main goals. The first is to investigate the role that behavioral principles play in the micro-foundation of Keynes's consumption theory, the second to discuss the possibility of grounding a Keynesian-type aggregate consumption function on the basis of (some of) the principles underlying contemporary behavioral models.

Suggested Citation

  • D'Orlando, Fabio & Sanfilippo, Eleonora, 2010. "Behavioral foundations for the Keynesian consumption function," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 1035-1046, December.
    • Handle: RePEc:eee:joepsy:v:31:y:2010:i:6:p:1035-1046
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    Cited by:

    1. Yun K. Kim & Mark Setterfield & Yuan Mei, 2014. "A theory of aggregate consumption," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(1), pages 31-49, April.
    2. Gechert, Sebastian, 2012. "The multiplier principle, credit-money and time," MPRA Paper 34648, University Library of Munich, Germany.

    More about this item

    Keywords

    Keynes Behavioral economics Consumption Heuristics Myopia Mental accounting;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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