Lars P. Syll

Although expected utility theory is both theoretically and descriptively inadequate, mainstream economists gladly continue to use it, as though its deficiencies were unknown or unheard of. Daniel Kahneman writes — in Thinking, Fast and Slow — that expected utility theory is seriously flawed since it doesn’t take into consideration the basic fact that people’s choices are influenced by changes in their wealth. Where standard microeconomic theory assumes that preferences are...

Randomization and experimental design in the social sciences Thad Dunning’s book Natural Experiments in the Social Sciences is a very useful guide for social​ scientists interested in research methodology in general and natural experiments in specific. Dunning argues that since random or as-if random assignment in natural experiments obviates the need for controlling potential confounders, this kind of “simple and transparent” design-based research method...

Money, law and democracy  [embedded content]

Warren Mosler und die Modern Monetary Theory ZEIT ONLINE: Eine Regierung kann also Geld ausgeben, so lange es keine Inflation gibt? Mosler: So ungefähr. Etwas technischer formuliert: So lange in der Volkswirtschaft freie Kapazitäten vorhanden sind, es also zum Beispiel Menschen gibt, die eine Arbeit suchen und in der Privatwirtschaft nicht fündig werden. ZEIT ONLINE: Gibt es die in Europa? Mosler: Mit Sicherheit. Schauen Sie sich doch die...

SMD theory means that assumptions guaranteeing good behavior at the microeconomic level do not carry over to the aggregate level or to qualitative features of the equilibrium. It has been difficult to make progress on the elaborations of general equilibrium theory that were put forth in Arrow and Hahn 1971 … Fifteen years after General Competitive Analysis, Arrow (1986) stated that the hypothesis of rationality had few implications at the aggregate level. Kirman (1989) held...

Language is an amazing thing …  [embedded content]

Comment éviter la prochaine crise financière mondiale ?  [embedded content]

Inequality​ and the future of capitalism  [embedded content]

Wie sozial kann Wirtschaft sein?  [embedded content]

Cose della vita (personal)  [embedded content] Yours truly lived in Florence back in 1987, trying to improve my Italian. Although I, unfortunately,​ haven’t had much time to keep up my use of that ‘bella lingua’ — reading Sraffa, Pasinetti and Garegnani in original don’t​ quite count — songs like this brings back sweet memories from a spectacularly​ beautiful town full of history and adventures. Sto pensando ancora a te …