Bounded Rationality in Macroeconomics: The Arne Ryde Memorial Lectures (Clarendon Paperbacks)

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9780198288695: Bounded Rationality in Macroeconomics: The Arne Ryde Memorial Lectures (Clarendon Paperbacks)
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How do people behave in new situations in which previous experience is not useful? The recent changes in Eastern Europe, for example, are unprecedented and there is not an available model on which to base the mechanisms that will govern the economics in this region. The concept of "bounded (or limited) rationality" is being developed to analyze behavior in such situations. In this book Thomas Sargent describes and interprets the recent work in the area, especially in statistics, econometrics, networks and artificial intelligence. He focuses on examples designed to illustrate the issues involved and the kinds of questions that are being asked and answered in this research. He points to further potential positive developments of the theory as well as some of its limitations.

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Bounded Rationality in Macroeconomics Focusing on a new development in economic theory which involves bounded or limited rationality, the author describes two laboratory experiments that test versions of his macroeconomic models. He analyzes some promising applications of the methods surveyed, as well as their limitations.

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The presentation is lucid and concise ... Those willing to join the search will find no better technical introduction than Sargent's book. (Journal of Economic Literature)

A lucid review of recent developments in the theory of "bounded rationality" ... a commendably concise, informative and, above all, interesting account of the very recent literature in dynamic economic theory. (JRSS)

The presentation is lucid and concise. Most macroeconomist readers will find the chapter on neural networks, genetic algorithms, and artificial intelligence particularly instructive ... Those willing to join the search will find no better technical introduction than Sargent's book. (Journal of Economic Literature)

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9780198288640: Bounded Rationality in Macroeconomics (Arne Ryde Memorial Lectures)

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