Behavioral Foundations for the Keynesian Consumption Function
University of Cassino and Cream Economic Center
SPES Development Studies at the University of Rome La Sapienza
This paper has two main goals. The first is to show that behavioral rather than maximizing principles emerge from textual analysis as the microeconomic foundations for Keynes’s Consumption Theory; the second goal is to demonstrate the possibility of grounding a Keynesian-type aggregate consumption function on the basis of (some of) the principles underlying contemporary behavioral models.
Number of Pages in PDF File: 31
Keywords: Keynes, Behavioral Economics, Consumption, Heuristics, Myopia, Hyperbolic Discounting, Mental Accounting
JEL Classification: B22, D01, D11, D91, E12, E21working papers series
Date posted: February 7, 2007 ; Last revised: December 2, 2009
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