NBER Working Group Descriptions
Behavioral Economics
Behavioral Economics (BE), Robert J. Shiller and Richard Thaler, Directors
The working group on behavioral economics studies economic decision-making from a broad social science perspective. It acknowledges the complexity of underlying human behavior and draws on an expansive repertory of research methods. It seeks to broaden the tool kit used by researchers in both economics and finance by introducing models of human behavior that are well grounded in psychological research. One active research area within this working group is behavioral finance. Work in this area challenges some conclusions about financial behavior in standard economic models by providing contrary evidence, anomalies, that call these models into question. Work in behavioral finance seeks to understand the parameters of human behavior in the financial context by econometric analysis of extensive data sets on financial transactions, asset prices, and related economic data. A second active research area examines the implications of similar models of human behavior, when aggregated across individuals or firms, for macroeconomic aggregates such as consumption, investment, and the level of employment.
Working Papers by NBER Working Group - BE
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