Category Archives: Psychology

On ‘Coherence’ in Asset Markets: Everything is Going According to Plan

The author of the Philosophical Economics blog has a post up that caught my attention on the supply and demand dynamics of asset markets. It caught my attention because it looked, at first, very similar to my own dissertation that … Continue reading

Posted in Economic Theory, Media/Journalism, Psychology, Toward a General Theory of Pricing | 14 Comments

Is Economics a Science? Dogmatic Economics Vs. Reflective Economics

The question asked in the title of this post is actually somewhat of a trick. It is a trick because it all depends upon how you define ‘science’. Often when people say that economics is a science what they are … Continue reading

Posted in Economic Theory, Philosophy, Psychology | 42 Comments

Economists: An Anthropological View

‘Life Among The Econ‘ is a satirical paper written by the economist Axel Leijonhufvud and published in 1973. In the paper Leijonhufvud refers directly the great work of cultural anthropology The Savage Mind by the French Structuralist anthropologist Claude Levi-Strauss. … Continue reading

Posted in Psychology | 7 Comments

Is There Such Thing as an ‘Economics-Based Psychotic Delusion’?

There is a somewhat well-known phenomenon called Jerusalem Syndrome that has gained some currency in popular culture (you can see some TV clips from the 1990s here). The folk legend goes something like this: people who are perfectly well-balanced psychologically … Continue reading

Posted in Psychology | 14 Comments

The ‘Information Asymmetry’ Paradigm is Vacuous

Sympathetic Post-Keynesian types often ask me what I think of the whole ‘asymmetric information’ paradigm. They’re often struck when I say that I think that its vacuous. After all doesn’t this paradigm undermine the dreaded General Equilibrium theory? Well yes … Continue reading

Posted in Economic Theory, Psychology | 10 Comments

I’m Pointing at the Moon, You’re Looking at My Finger: Janet Yellen on Post-Keynesian Economics

Here’s an interesting fact that I’ll bet many of you didn’t know: the current head of the Federal Reserve, Janet Yellen, wrote a short paper in 1980 examining the theories of the Post-Keynesians. You can find it here. The paper … Continue reading

Posted in Economic Policy, Economic Theory, Philosophy, Psychology | 26 Comments

Why Economists Fail to Make ‘Rational’ Judgments and Why You Should Too

Recently Cameron Murray directed me to an interesting paper entitled Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science. The paper surveyed a whole bunch of professional economists to see if they … Continue reading

Posted in Economic Theory, Psychology | 45 Comments