Behavioral Foundations for the Keynesian Consumption Function

31 Pages Posted: 7 Feb 2007 Last revised: 2 Dec 2009

See all articles by Fabio D'Orlando

Fabio D'Orlando

Università di Cassino e del Lazio Meridionale

Eleonora Sanfilippo

SPES Development Studies at the University of Rome La Sapienza

Date Written: 2007

Abstract

This paper has two main goals. The first is to show that behavioral rather than maximizing principles emerge from textual analysis as the microeconomic foundations for Keynes’s Consumption Theory; the second goal is to demonstrate the possibility of grounding a Keynesian-type aggregate consumption function on the basis of (some of) the principles underlying contemporary behavioral models.

Keywords: Keynes, Behavioral Economics, Consumption, Heuristics, Myopia, Hyperbolic Discounting, Mental Accounting

JEL Classification: B22, D01, D11, D91, E12, E21

Suggested Citation

D'Orlando, Fabio and Sanfilippo, Eleonora, Behavioral Foundations for the Keynesian Consumption Function (2007). Available at SSRN: https://ssrn.com/abstract=961780 or http://dx.doi.org/10.2139/ssrn.961780

Fabio D'Orlando (Contact Author)

Università di Cassino e del Lazio Meridionale ( email )

Cassino
Italy

HOME PAGE: http://www.docente.unicas.it/fabio_dorlando

Eleonora Sanfilippo

SPES Development Studies at the University of Rome La Sapienza ( email )

Via del Castro Laurenziano, 9
Rome, RM I - 00183
Italy

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