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Distinguished Lecture on Economics in Government: Public Policy, Values, and Consciousness

Distinguished Lecture on Economics in Government: Public Policy, Values, and Consciousness Abstract Economists should pay more attention to value formation in economic analysis. First, preferences are not stable in any operationally meaningful sense. Any estimated micro behavior that does not take account of the consequences of the behavior on underlying preferences is incapable of serving as a guide to future action. Second, the economist's model of human psychology is inaccurate and misleading. Third, most analyses of complex social behavior start from models incapable of producing empirical results adequate for useful structural analyses. The paper suggests avenues for making progress on each of these issues, beginning with a different approach to utility maximization. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Perspectives American Economic Association

Distinguished Lecture on Economics in Government: Public Policy, Values, and Consciousness

Aaron, Henry J
Journal of Economic Perspectives , Volume 8 (2) – May 1, 1994
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References (29)

Publisher
American Economic Association
Copyright
Copyright © 1994 by the American Economic Association
Subject
Lecture
ISSN
0895-3309
DOI
10.1257/jep.8.2.3
Publisher site
See Article on Publisher Site

Abstract

Abstract Economists should pay more attention to value formation in economic analysis. First, preferences are not stable in any operationally meaningful sense. Any estimated micro behavior that does not take account of the consequences of the behavior on underlying preferences is incapable of serving as a guide to future action. Second, the economist's model of human psychology is inaccurate and misleading. Third, most analyses of complex social behavior start from models incapable of producing empirical results adequate for useful structural analyses. The paper suggests avenues for making progress on each of these issues, beginning with a different approach to utility maximization.

Journal

Journal of Economic Perspectives – American Economic Association

Published: May 1, 1994

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