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This research project develops a new behavioral paradigm of heterogeneous expectations that can help explain the sources of financial and macroeconomic instability and find possible policy remedies.

In a previous post we queried whether the theory of the consumer as developed in the first three chapters of Mas-Colell, Whinston and Green (and indeed other comparable texts) provides anything by way of content beyond what is implied by the abstract description of consumers as agents who are maximizing something. [We did not discuss chapter four, on aggregation of demand, to which we may return later]. As we noted then, a comparable point can be made about the theory of the firm.

Losing jobs isn’t the only thing workers have to worry about. AI may make many jobs worse.

In 1898, upwardly mobile Blacks in Wilmington, NC were terrorized and slaughtered in a violent insurrection that set the stage for Jim Crow – and the next 123 years. Hardly anyone really knows about it.

The renowned economist reflects on the rise of neoclassical economics, the post-2008 surge of interest in non-mainstream, heterodox thought, and how young economists can remain independent in the face of biased evaluation systems

Along the entire “innovation chain” — from research and development, to production and commercialization — government and private sectors have very different roles to play.

The plight of white blue-collar workers is well-known, but Blacks in that category were feeling the squeeze long before their white counterparts.

How might a reimagined American foreign policy both bolster the domestic economy and help build a 21st-century global economy that works for everyone?

A webinar panel discussion moderated by INET Fellow Moritz Schularick, with Laura Carvalho, Associate Professor of Economics at the University of São Paulo, Matthew C. Klein, Economics Commentator at Barron’s, and Amir Sufi, Bruce Lindsay Professor of Economics and Public Policy at the University of Chicago Booth School of Business.

Finance for the Rest of Us

Warnings of “corruption and incompetence coming together,” as economists William Lazonick and Öner Tulum study the race to end the pandemic.

In a new book, Alligators in the Arctic and How To Avoid Them, Peter Dorman shows how flawed academic models, faulty assumptions and unrealistic schemes grossly underestimate what’s needed to stop catastrophic warming. He argues for a straightforward carbon emission budget – plus the active citizenship required to fight big businesses that want to keep doing business as usual. Lynn Parramore explores his findings and talks to the economist about the path forward.

As protests erupt on the streets of America and the world, current power structures no longer feel tenable. Can this popular uprising break the neoliberal grip on the state and create lasting structural change that will empower the disenfranchised?

The Eurozone is (quietly) disintegrating as ‘core’ and ‘periphery’ countries continue on paths of economic divergence. That disintegration is reinforced by self-defeating policies shaped by a macroeconomic model that mimics and reinforces the divisions between ‘winners’ and ‘losers’

Months ago, I got a message from a friend that was a swift and excited line: Errol Morris was writing a series of posts about science, even more remarkable about Thomas Kuhn.