Behavioral and complexity macroeconomics

Artikel

This paper sketches the history of behavioral macroeconomics and presents four current approaches in the literature: the ad hoc behavioral approach, partial behavioral macroeconomic models, experimental macroeconomics, and behavioral DSGE models. Much of this literature is still patchwork, with a focus on isolated aspects but little theoretical integration. I argue that integrating behavioral features into New Keynesian DSGE models is not convincing because of fundamental problems of the DSGE approach. A better way to use research from behavioral economics for more realistic macroeconomic models is to turn to complexity economics and agent-based modeling. Complexity economics and behavioral economics are linked in a very natural way, since both emphasize the direct interaction of heterogeneous agents that are boundedly rational. Behavioral and complexity macroeconomics is a promising new approach that might make mainstream macroeconomics more realistic and relevant again.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 14 ; Year: 2017 ; Issue: 2 ; Pages: 186-199

Classification and Topics

• Classification: Wirtschaft ; Economic Methodology ; Current Heterodox Approaches: General ; Computational Techniques; Simulation Modeling
• Subject: bounded rationality ; methodology ; microfoundations ; representative agents

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Roos, Michael
• Event: Veröffentlichung
• (who): Edward Elgar Publishing
• (where): Cheltenham
• (when): 2017

Further information

• DOI: doi:10.4337/ejeep.2017.02.03
• Handle: http://hdl.handle.net/10419/277387
• Last update: 10.03.2025, 11:41 AM CET