British government is moving from behavioral economics to complexity economics

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This topic contains 3 replies, has 3 voices, and was last updated by  Peter Sperry 6 years, 10 months ago.

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  • #121189

    Bill Brantley
    Participant

    Nudging people into good behaviour, the Government’s pet project, no longer represents the cutting-edge in policy making – all eyes are now on ‘networks’, according to influential economists.”

    I was hoping the US would be the first to take up complexity economics but I am glad to see policymakers in other governments are realizing that traditional economics is no longer relevant for today’s economies.

  • #121195

    Peter Sperry
    Participant

    Bill- We are still trying to get the Keynsians, Supply Siders and Austrian Schoolers to admit behavioral economics is more than a spawn of the devil created to undermine their pet theories and you want to move to complexity? What’s next, asking them to actually make the effort to understand advances in economic thought which have occured since they wrote their disertations? The entire profession could go into melt down. 😉

  • #121193

    Sterling Whitehead
    Participant

    I remember getting my bachelor’s in economics and how much I disagreed much of (but not all of) neoclassical economic theory. Many of its underlying assumptions like rational behavior and perfect distribution of information don’t hold up in real life. Humans are animals — we do stupid things. Some people have better information than others even with the Internet being widespread in America. Behavioral economics is a step in the right direction.

    I just hope most policy makers don’t jump onto complexity economics without having an understanding of behavioral economics. Complexity theory can help, but it needs to be combined with behavioral economics to produce the best decisions.

  • #121191

    Bill Brantley
    Participant

    @Peter – LOL 🙂

    @Sterling – Complexity economics folds in behavioral economics and is a fundamental part of explaining people’s economic behavior so it won’t disappear but will be enhanced under complexity economics.

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