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Should post-Keynesians make a behavioural turn?

  • John E. King

    (La Trobe University)

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    This paper deals with the relationship between post-Keynesian and behavioural economics. I begin by responding critically to Paul Davidson's claim that Keynes was the first behavioural economist. Then I discuss some recent work in behavioural macroeconomics, which reveals some important strengths but also some fundamental weaknesses. Next I outline what (Old) behavioural economists have had to say about macroeconomics, beginning with the father of the school, Herbert Simon, and considering the contributions of some of his disciples. I then reverse the question and ask what post-Keynesians have had to say about behavioural economics, Old and New. I conclude by identifying some potential sources of difficulty and also suggesting some areas of macroeconomics where cooperation between post-Keynesians and behavioural economists seems especially promising.

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    Article provided by Edward Elgar in its journal European Journal of Economics and Economic Policies: Intervention.

    Volume (Year): 10 (2013)
    Issue (Month): 2 ()
    Pages: 231-242

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    Handle: RePEc:elg:ejeepi:v:10:y:2013:i:2:p231-242
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