De Grauwe, Paul;
Ji, Yuemei;
(2017)
This is the value of behavioural economics in understanding our world.
[Digital scholarly resource].
https://www.weforum.org/agenda/2017/11/this-is-the...
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Behavioural economics is also useful in macroeconomics.pdf - Accepted Version Download (294kB) | Preview |
Abstract
Dynamic stochastic general equilibrium models are still dominant in mainstream macroeconomics, but they are only able to explain business cycle fluctuations as the result of exogenous shocks. This column uses concepts from behavioural economics to develop macroeconomic models with endogenous business cycle fluctuations. Application of the models highlights how the trade-off between output and inflation is moderated by the flexibility of the economy. The models further help to explain the international transmission of business cycle fluctuations.
| Type: | Digital scholarly resource |
|---|---|
| Title: | This is the value of behavioural economics in understanding our world |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | https://www.weforum.org/agenda/2017/11/this-is-the... |
| Language: | English |
| Additional information: | Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10040186 |
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