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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.

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File URL: http://www.sciencedirect.com/science/article/B6V8H-513363R-1/2/bb3b01e20005da23b8b5199a56bd0ce7
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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 31 (2010)
Issue (Month): 6 (December)
Pages: 1035-1046

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Handle: RePEc:eee:joepsy:v:31:y:2010:i:6:p:1035-1046
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

Keywords: Keynes Behavioral economics Consumption Heuristics Myopia Mental accounting;

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Find related papers by 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 - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
  • 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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Cited by:

  1. Gechert, Sebastian, 2012. "The multiplier principle, credit-money and time," MPRA Paper 34648, University Library of Munich, Germany.
  2. 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.

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