Spent a large part of today thinking about the next 'big' thing...
Everyone who's anyone has earnt his/her rightful place under the sun by doing or developing something new....
This definitely holds true for the economics.
In my opinion, the current setup of economics will provide us with rapidly decreasing gains with every ensuing generation.... by focusing almost solely on mathematics it is rapidly reaching a level of extreme abstraction.
Thus, a new basis or field of research would be needed to progress any further.
I do have an idea though...
An element of human psychology should be introduced into the curriculum... the mother of all assumptions..."The consumer is rational"... should be relaxed... atleast to a small degree.
The mantra could be appended to..." the consumer is fallible".
This development would divert some of our attention from the 'core' but I do believe some interesting real world applications would come out of this.
I wonder if I'm the first one to think of this.......
D
4 comments:
Search behavioral Economics.
I know the subject is being taught in PhD programs in the U.S. I wrote a paper on the subject of behavioral finance, some economist in 2002 won the nobel prize for this (I have forgotten his name, and the yr is a rough estimate).
yo dixiee. well the idea does sound intriguing and lotta people are doing work on it in the states as the earlier comment mentions.i do not know if you have read freakanomics, it is a really awesome way of applying economics to more practical and intriguing situations. so something on that front is defienetely being done............in the U.S that is .though why our institues seem to be lagging behind is somehting that you might know better.
but it does give a whole new dimension to economics and the applications of it.right now it is pretty much based on just collating statistics and looking at it from a different point of view.but i am sure it will go much further in the years to come.
that a great idea .....
I suggest you try this link
http://en.wikipedia.org/wiki/Psychohistory_(fictional)
Todays fiction is tommorows reality.
Dude you can creat it........
read some of the work by Simon, Tversky and Kahneman and Akerlof. They cover a range of aspect, all of which I suspect you will find fascinating.
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