Renowned scholars elaborate a critique on neoclassical economics and how it was unable to predict and even favoured the financial crisis. They refer to DSGE models, equilibrium theory and rational agents – a brief insight in the critique on neoclassic economics. 2012 Level: beginner Financial Instability Mini-Documentary Joseph Stiglitz, Gillian Tett, David Tuckett, Stephen Kinsella, John Kay, David Weinstein, Steve Keen and Dirk Bezemer INET Sheila Dow discusses the concept of radical uncertainty and the failure of neoclassical economics to integrate it into its analysis. As to the implications for financial regulation that arise from the presence of radical uncertainty she argues for institutional overhaul, where the banks see themselves as a licensed partner of the central bank and where rules, values, and conventions would be subject to a cultural shift. Also, Sheila Dow advocates for a renewed focus on retail banking. 2015 Level: advanced The Economics of Uncertainty Sheila Dow INET The Lecturer Prof. Francesco Lissoni presents basic concepts of the Economics of Innovation. Firstly, he distinguishes between invention, innovation and diffusion and relates innovation to economic growth. Subsequently, he elucidates learning and network effects. 2012 Level: advanced Economics of Innovation 1/2 Francesco Lissoni Alta Scuola Politecnica Have you ever wondered why it is so difficult to follow through on new year’s resolutions, such as to exercise more or to start saving more money towards retirement? The agent that most traditional economic models are based on would not struggle to keep up these resolutions. These agents are referred to as homo economicus. 2018 Level: beginner Homo Economicus: Why are new year’s resolutions so difficult to maintain and economic models so bad at predicting our behaviour? Antonia T. Schröder Pluralist Economics Fellowship In this short video behavioural economist, Dan Aerily talks about how our cognitive illusions will trick us into believing something that is otherwise deemed irrational by the homo economicus. It raises and probes into some very interesting questions that defy the neoclassical rational behaviour. 2009 Level: beginner Are we in control of our decisions? Dan Aerily YouTube How do people make decisions? There is a class of models in psychology which seek to answer this question but have received scant attention in economics despite some clear empirical successes. In a previous post I discussed one of these, Decision by Sampling, and this post will look at another: the so-called Fast and Frugal heuristics pioneered by the German psychologist Gerd Gigerenzer. Here the individual seeks out sufficient information to make a reasonable decision. They are ‘fast’ because they do not require massive computational effort to make a decision so can be done in seconds, and they are ‘frugal’ because they use as little information as possible to make the decision effectively. 2020 Level: beginner Bounded Rationality: the Case of ‘Fast and Frugal’ Heuristics Cahal Moran Rethinking Economics In this interview Gerd Gigerenzer place bounded rationality into the context of a larger development in thinking about what rationality is He touches on unbounded rationality which remains overrepresented and popular in neoclassical economics he explains different interpretations of bounded rationality and concludes with an ecological interpretation of rationality He … 2011 Level: beginner Gerd Gigerenzer - Bounded Rationality Gerd Gigerenzer. Interview by GoCognitive.net GoCognitive YouTube Channel Jason Collins explains how his evolutionary approach to decision making relates to other approaches of behaviour This piece therefore not only serves as a good introduction to this evolutionary approach but also serves as a great introduction to these other approaches of behaviour namely neoclassical perfect rationality which involves mainly … 2015 Level: beginner Please, not another bias! An evolutionary take on behavioural economics. Jason Collins www.jasoncollins.blog Photo by Alina Grubnyak on Unsplash Networks are ubiquitous in our modern society The World Wide Web that links us to and enables information flows with the rest of the world is the most visible example It is however only one of many networks within which we are situated Our … Level: beginner Networks Daron Acemoglu; Asu Ozdaglar Massachusetts Institute of Technology With the collapse of the planned economies of Eastern Europe, the market is extending its reach and at the same time claiming its universal applicability. But this is occurring while paradoxically it is becoming more difficult to define "the market". The authors, all outstanding scholars in the booming field of socio-economics, explore how concrete markets are built up and stabilized. 1998 Level: advanced Laws of the Markets Michel Callon Wiley The economic crisis is also a crisis for economic theory. Most analyses of the evolution of the crisis invoke three themes, contagion, networks and trust, yet none of these play a major role in standard macroeconomic models. What is needed is a theory in which these aspects are central. 2011 Level: advanced Complex Economics Alan Kirman Routledge Orthodox economics operates within a hypothesized world of perfect competition in which perfect consumers and firms act to bring about supposedly optimal outcomes. The discrepancies between this model and the reality it claims to address are then attributed to particular imperfections in reality itself. 2018 Level: advanced Capitalism Anwar Shaikh Oxford University Press Popularized by movies such as A Beautiful Mind game theory is the mathematical modeling of strategic interaction among rational and irrational agents Over four weeks of lectures this advanced course considers how to design interactions between agents in order to achieve good social outcomes Three main topics are covered social … Level: advanced Game Theory II: Advanced Applications Matthew O. Jackson; Kevin Leyton-Brown; Yoav Shoham Stanford University, The University of British Columbia Is our knowledge of the world essentially rational What does it mean to be burdened with the gift of rationality Philosopher Corine Besson considers the nature of humanity s defining trait Corine Besson iai University of Sussex Level: beginner Knowledge and Rationality Corine Besson University of Sussex The book deals with the financial instability hypothesis of Hyman P. Minsky and its application to current developments. The first part of the work summarizes the hypothesis and mentions works elaborating the hypothesis. The second part applies the hypothesis to the financial crisis 0f 2008/09. 2014 Level: advanced The Financial Instability Hypothesis of Hyman P. Minsky Michal Paulus LAP LAMBERT Academic Publishing An introductory course on Game Theory Level: beginner Game Theory Matthew O. Jackson; Kevin Leyton-Brown; Yoav Shoham Stanford University, The University of British Columbia Mr Minsky long argued markets were crisis prone His moment has arrived The Wall Street Journal In his seminal work Minsky presents his groundbreaking financial theory of investment one that is startlingly relevant today He explains why the American economy has experienced periods of debilitating inflation rising unemployment and marked … 2008 Level: advanced Stabilizing an Unstable Economy Hyman Minsky McGraw Hill Professional More-is-better ideals such as these have long shaped our vision of rationality. Yet humans and other animals typically rely on simple heuristics to solve adaptive problems, focusing on one or a few important cues and ignoring the rest, and shortcutting computation rather than striving for as much as possible. 2012 Level: advanced Ecological Rationality Peter M. Todd, Gerd Gigerenzer, ABC Research Group Oxford University Press, USA