Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5066533 | European Economic Review | 2016 | 7 Pages |
Abstract
Economists base policy advice on models of responses by a variety of economic entities to policy adoptions. There is compelling evidence that these entities do not optimize as mainstream economics assumes. Rather, they limit decision-making to solving problems of much smaller dimensionality. We consider how political economy goes awry when ignoring diminished dimensionality, and some research avenues opened up by this realization.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ronald M. Harstad, Reinhard Selten,