An Approach to Incorporating Psychology into Economics

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 617-22

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article proposes an approach to improving the psychological realism of economics while maintaining its conventional techniques and goals--formal theoretical and empirical analysis using tractable models, with a focus on prediction and estimation. Besides tolerating the imperfections that come with precision, models should aim for two crucial criteria: power and scope. The approach advocated is to develop portable extensions of existing models that embed preexisting theories as parameter values, while introducing the new psychological assumptions as alternative parameter values, and make the model portable by defining it in all cases where existing models make predictions.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:617-22
Journal Field
General
Author Count
1
Added to Database
2026-01-29