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Behavioural Macroeconomics and the Aggregate Supply Puzzle

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  • Steinar Holden

Abstract

The paper provides a short and simplified overview of important deviations from the economic man assumption that have been documented in research by cognitive psychologists and experimental economists. After the overview, I proceed to look at one specific topic within macroeconomics – the short run aggregate supply schedule – and discuss whether theories based on behavioural assumptions might perhaps resolve weaknesses in the more traditional approach.

Suggested Citation

  • Steinar Holden, 2004. "Behavioural Macroeconomics and the Aggregate Supply Puzzle," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 30, pages 27-35.
    • Handle: RePEc:noj:journl:v:30:y:2004:p:27-35
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    References listed on IDEAS

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    More about this item

    Keywords

    behavioural macroeconomics; bounded rationality; aggregate supply;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • D6 - Microeconomics - - Welfare Economics

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