Behavioral Foundations for the Keynesian Consumption Function
31 Pages Posted: 7 Feb 2007 Last revised: 2 Dec 2009
Date Written: 2007
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: Suggested Citation