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p. 1008. Behaviour in the macroeconomylocked

  • Michelle Baddeley

Abstract

Behavioural macroeconomics has significant constraints, reflecting the difficulty of bringing together the choices of different people with widely different personality types, moods, and emotions, making decisions in complex ways using a wide range of heuristics that generate an even wider range of biases. ‘Behaviour in the macroeconomy’ explores how behavioural economists can overcome these difficulties, contributing to the development of innovative macroeconomic theories and collection of new types of behavioural macroeconomic data. It focuses on how social and psychological factors, including optimism and pessimism, help us to understand macroeconomic fluctuations; the impact of confidence and social mood on macroeconomic outcomes; and another theme in behavioural economics—happiness and well-being.

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