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Ronald Schettkat

The Behavioral Economics of John Maynard Keynes: Microfoundations for the World We Live In

The Behavioral Economics of John Maynard Keynes: Microfoundations for the World We Live In

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  • More about The Behavioral Economics of John Maynard Keynes: Microfoundations for the World We Live In


The Keynes macroeconomic revolution is based on his microfoundations of economic behavior derived from behavioral economics and neurology, which differ from the neoclassical model. This book provides a thorough theoretical grounding in economics, suitable for economists, students, political science, sociology, and psychology, and the general public.

Format: Hardback
Length: 184 pages
Publication date: 13 December 2022
Publisher: Edward Elgar Publishing Ltd


Keynes' macroeconomic revolution is built upon his microfoundations of economic behavior, which are derived from 'casual observations but impressively substantiated by rigorous research in behavioral economics and neurology. Ronald Schettkat contends that the claim of missing microfoundations in Keynes' theory is unfounded. Instead, both Keynes' theory and behavioral economics relate to humans in the 'economy we live in, differing substantially in their fundamentals from the neoclassical model.

Showing that Keynes' micro has much in common with Behavioral Economics, the book begins with the fundamentals, ranging from the methodological approach to economics as a real versus an axiomatic science and the consequences for knowledge-building methods (interviews, observations, experiments), the rationality and equilibrium concepts to the functioning of markets, before delving into the topics in greater detail.

Providing a thorough theoretical grounding in economics, this book will be a discerning read for economists, students of economics, political science, sociology, and psychology, as well as for the general public.


Dimension: 216 x 138 (mm)
ISBN-13: 9781802204889

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