Behavioral macroeconomics is alive

Behavioral Economics Isn’t Dead Yet

Just a few years ago, many were proclaiming the decline of behavioral economics. In 2009, the well-known game theorist David Levine delivered a lecture called “Is Behavioral Economics Doomed?,” in which he casts doubt on some prominent behavioral theories. In a few fields, such as finance, behavioral ideas have gone mainstream; in others, like game theory, interest is slowly building. But in most policy-relevant fields it remains marginal. And many believe that macroeconomics, in particular, will remain mostly untouched by behavioral ideas. ….[READ]