I tend to hear two complaints about behavioral economics from more traditional economists:
1) that the magnitudes of any behavioral effects that exists are small enough to be ignored by their models
2) that at this point there is no consistent, reliable behavioral theory that can be imported into general models (which seems to be saying that behavioral doesn't aggregate well for work like macro)
It seems like you probably get these questions a lot. How do you answer them?
sushik323 karma
Hi Dick,
I tend to hear two complaints about behavioral economics from more traditional economists:
1) that the magnitudes of any behavioral effects that exists are small enough to be ignored by their models 2) that at this point there is no consistent, reliable behavioral theory that can be imported into general models (which seems to be saying that behavioral doesn't aggregate well for work like macro)
It seems like you probably get these questions a lot. How do you answer them?
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