by Mario Rizzo Periodically, people warn about the “crisis in economics.” I have heard about several of these over my professional career. Somehow the mainstream or orthodox economists never seem to notice these crises or take them seriously. They continue doing what they were doing. Today the crisis, if there is one, is due to … Continue reading A Crisis in Economics?
by Mario Rizzo This is the time of the year that various publications recommend Christmas books or the best books of 2010. (I have never known what a Christmas -- or summer -- book is. Are they supposed to be light reading? I don't believe in reading "light." When I am in the mood for that, I watch TV.) … Continue reading Predictably Rational: A Brilliant Book by Richard B. McKenzie
by Mario Rizzo Behavioral economists who like to indulge in normative pronouncements have decided that quasi-hyperbolic discounting violates rationality. In other words, suppose a person decides today that he will give up the hamburgers he loves beginning in 2010 (because of the high fat content). But then when 2010 arrives he reverses his decision and … Continue reading Why Kant Was Smarter Than Behavioral Economists
by Mario Rizzo The work of Elinor Ostrom, the first woman to receive the Nobel Prize in economics, is not very well-known among economists. In fact, I would venture the guess than most economists had not heard of her before the prize was announced yesterday morning. Two reasons for this are that her degree is … Continue reading Elinor Ostrom and the Relevance of Economics