TOPICS IN BEHAVIOURAL MACROECONOMICS
Updated A.Y. 2022-2023
Office 46a 06-72595741.
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Textbook: “Lectures on Behavioral Macroeconomics” Paul De Grauwe
The course will be graded based on a written exam in which you will be asked to write 2 very brief essays.
The aim of the course is to provide a hint of the potential usefulness of behavioral models, in which
agents are assumed to be irrational. The course will start with a review of the classic “Thinking Fas and Thinking Slow” by Daniel Kahneman.
The main focus will be on one kind of irrationality and discuss
implications in the context of the simplest available macroeconomics models. This (main) section is based largely on the work of Paul De Grauwe.
In addition (and briefly) Gabaix’s explanation of apparent myopia based on limited attention and finite processing capacity will be discussed.
Also the application of Kahnemen and Twersky to economics by Genaiolo and Shleifer will be discussed.
Finally examples of apparent bubbles described by Robert Shiller will be discussed.
The three additional topics will not be stressed on the exam which will focus on the main topic of the course (deGrauwe’s approach).
Thinking, Fast and Slow
10 May 2012
English edition by Daniel Kahneman
Lectures on Behavioral Macroeconomics Condividi
di Paul De Grauwe
Princeton University Press, 2012
A Crisis of Beliefs: Investor Psychology and Financial Fragility
Nicola Gennaioli & Andrei Shleifer
11 settembre 2018
Irrational Exuberance: Revised and Expanded Third Edition Paperback –
Robert J. Shiller
August 16, 2016