tailieunhanh - The Case for Mindless Economics†

Occupational analysis provides economic development practitioners with insights into the talent base within a region. Each occupation represents a portfolio of knowledge, skills and abilities. In Southeast Wisconsin, the Milwaukee 7 region, economic and workforce development professionals are looking at the occupational composition of 15 targeted industry groups, including pharmaceuticals, plastics, and industrial machinery. Based on the occupational structure of these industry clusters, they are identifying the core knowledge, skills, and abilities that must come through their talent pipeline to supply these businesses. So, for example, production occupations within these clusters share a common need for high levels of quality. | The Case for Mindless Economics Faruk Gul and Wolfgang Pesendorfer Princeton University November 2005 Abstract Neuroeconomics proposes radical changes in the methods of economics. This essay discusses the proposed changes in methodology together with the the neuroeconomic critique of standard economics. We do not assess the contributions or promise of neuroeconomic research. Rather we offer a response to the neuroeconomic critique of standard economics. t This research was supported by grants from the National Science Foundation. We thank Drew Fudenberg and Philipp Sadowski for helpful comments and suggestions. 1. Introduction Neuroeconomics proposes radical changes in the methods of economics. This essay discusses the proposed changes in methodology together with the the neuroeconomic critique of standard economics. Our definition of neuroeconomics includes research that makes no specific reference to neuroscience and is traditionally referred to as psychology and economics. We identify neuroeconomics as research that implicitly or explicitly makes either of the following two claims Assertion I Psychological and physiological evidence such as descriptions of hedonic states and brain processes are directly relevant to economic theories. In particular they can be used to support or reject economic models or even economic methodology. Assertion II What makes individuals happy true utility differs from what they choose. Economic welfare analysis should use true utility rather than the utilities governing choice choice utility . Neuroeconomics goes beyond the common practice of economists to use psychological insights as inspiration for economic modeling or to take into account experimental evidence that challenges behavioral assumptions of economic models. Neuroeconomics appeals directly to the neuroscience evidence to reject standard economic models or to question economic constructs. Camerer Loewenstein and Prelec 2005 henceforth CLP 2005 express the neuroeconomics

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