Macroeconomics II: Behavioural Macroeconomics

Lecture 5th/ 6th semester

Bachelor

Lecturer: Klaus Wälde

Tutorial: Jean Roch Donsimoni

Exam: in English, computer based ("E-Klausur"). Answers can be given also in German

Lecture

The lecture Macroeconomics II covers topics from behavioural macroeconomics. Unfortunately, this is not yet a fully elaborated field. We will therefore cover all kind of topics from behavioural economic theory and discuss the links or the potential links to macroeconomics. The material in this course and the link between psychology, behavioural economics and macroeconomics is therefore subject of ongoing research.

In this sense this lecture is a perfect example of research-oriented teaching -- one of the building blocks of JGU Mainz. As a downside, this implies that there is no textbook that covers all the material which is taught in the course. Students will be rewarded for this lack by an insight into state-of-the art research and thinking.

The lecture and the tutorial are held in English. The course is based on articles from the literature which students should read. These papers will be announced in the lecture. References are made available below after the lecture. Slides from the lecture are available in the JGU Reader.

References

• Becker and Murphy (1988): “A Theory of Rational Addiction

• Bell (1985): “Disappointment in Decision Making under Uncertainty

• Benabou and Tirole (2003): “Intrinsic and Extrinsic Motivation

• Benjamin, Heffetz, Kimball and Rees-Jones (2012): “What Do You Think Would Make You Happier? What Do You Think You Would Choose?

• Bernheim and Rangel (2004): “Addiction and Cue-Tiggered Decision Processes

• Bleichrodt and Wacker (2015): Regret Theory: A Bold Alternative To The Alternatives

• Brandstätter, Güth and Kliemt (2010): Psychology and Economics rather than Psychology vesus Economics: Cultural differences but no barriers!

• Caplin and Leahy (2001): “Psychological Expected Utility Theory And Anticipatory Feelings

• Caplin and Leahy (2004): “The supply of information by a concerned expert

• Clark and Oswald (1994): Unhappiness and unemployment.

• Easterlin (1974): Does Economic Growth Improve the Human Lot? Some Empirical Evidence

• Frey and Stutzer (2002): “What Can Economists Learn from Happiness Research?

• Grant, Kajii and Polak (2001): “Different notions of disappointment aversion

• Gul (1991): “A Theory of Disappointment Aversion

• Kahnemann and Tversky (1979): Prospect Theory: An Analysis of Decision under Risk

• Kahneman, Wakker and Sarin (1997): “Back to Bentham? Explorations of Experienced Utility

• Köszegi (2006): “Emotional Agency

• Kleinginna, P., and A. Kleinginna (1981): “A Categorized List of Emotion Defi nitions, with Suggestions for a Consensual Definition

• Kops and Wälde (2011): “Why do some decisions take so long?

• Laibson, D. (2001): “A Cue-Theory of Consumption

• Loewenstein (2000): “Emotions in Economic Theory and Economic Behavior

• Loewenstein and Lerner (2003): The Role of Affect in Decision Making

• Loewenstein, G., T. O’Donoghue, and M. Rabin (2003): “Projection Bias in Predicting Future Utility

• Loomes and Sugden (1982): Regret Theory: An Alternative Theory of Rational Choice under Uncertainty

• Loomes and Sugden (1986): “Disappointment and Dynamic Consistency in Choice under Uncertainty”

• Ohtake (2012): Unemployment and Happiness

• Rayo and Becker (2007): “Evolutionary Efficiency and Happiness

• Rick and Loewenstein (2008): The Role of Emotion in Economic Behavior

• Lewis, Haviland-Jones and Feldman Barrett (2008): Handbook of Emotions

• Sacharin, V., K. Schlegel, and K. Scherer (2012): “Geneva Emotion Wheel Rating Study

• Sargent (2008): Rational Expectations

• Shaver, p., J. Schwartz, D. Kirson, and C. O‘Connor (1987): “Emotion Knowledge: FurtherExploration of a Prototype Approach