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Program

EN IT

Updated A.Y. 2022-2023

Behavioral Macroeconomics

Robert Waldmann

Robert.waldmann@gmail.com

Office 46a 06-72595741.

Office hours e-mail me for an appointment

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).

 

Bibliography

 

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

 

https://scholar.harvard.edu/xgabaix/publications/behavioral-new-keynesian-model-working-paper

 

 

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