The Foundations of Positive and Normative Economics

The Foundations of Positive and Normative Economics: A Handbook is the first book in a new series by Andrew Caplin and Andrew Schotter. There is currently no guide available on the rapidly changing methodological frontiers of the field of economics. Economists have been introducing new theories and new sources of data at a remarkable rate in recent years, and there are widely divergent views both on how productive these expansions have been in the past, and how best to make progress in the future. The speed of these changes has left economists ill at ease, and has created a backlash against new methods. The series will debate these critical issues, allowing proponents of a particular research method to present proposals in a safe yet critical context, with alternatives being clarified. This first volume, written by some of the most prominent researchers in the discipline, reflects the challenges that are opened by new research opportunities. The goal of the current volume and the series it presages, is to formally open a dialog on methodology. The editors' conviction is that such a debate will rebound to the benefit of social science in general, and economics in particular. The issues under discussion strike to the very heart of the social scientific enterprise. This work is of tremendous importance to all who are interested in the contributions that academic research can make not only to our scientific understanding, but also to matters of policy.

Autorentext
Andrew Caplin is professor of economics at New York University and the co-director of NYU's Center for Experimental Social Science. He conducts theoretical research in microeconomics, macroeconomics, political economy, economics and psychology, and neuroeconomics, as well as survey research on patterns of life cycle wealth accumulation and decumulation. He is also involved in the design of new mortgage instruments, several of which are currently under development. He is a Fellow of the Econometric Society and a member of the Steering Committee of the Health and Retirement Survey. Andrew Schotter is professor of economics at New York University and the Director of NYU's Center for Experimental Social Science. He is the author of numerous books and articles including The Economic Theory of Social Institutions, Free Market Economics: A Critical Appraisal, and Microeconomics: An Modern Approach . His main area of research is in economic theory, game theory, and especially Experimental Economics.

Zusammenfassung
The Foundations of Positive and Normative Economics: A Handbook is the first book in a new series by Andrew Caplin and Andrew Schotter. There is currently no guide available on the rapidly changing methodological frontiers of the field of economics. Economists have been introducing new theories and new sources of data at a remarkable rate in recent years, and there are widely divergent views both on how productive these expansions have been in the past, and how best to make progress in the future. The speed of these changes has left economists ill at ease, and has created a backlash against new methods. The series will debate these critical issues, allowing proponents of a particular research method to present proposals in a safe yet critical context, with alternatives being clarified. This first volume, written by some of the most prominent researchers in the discipline, reflects the challenges that are opened by new research opportunities. The goal of the current volume and the series it presages, is to formally open a dialog on methodology. The editors' conviction is that such a debate will rebound to the benefit of social science in general, and economics in particular. The issues under discussion strike to the very heart of the social scientific enterprise. This work is of tremendous importance to all who are interested in the contributions that academic research can make not only to our scientific understanding, but also to matters of policy.

Inhalt
Part One: Setting the Stage 1 The Case for Mindless Economics --- Faruk Gul and Wolfgang Pesendorfer Part Two: The Debate 2 The Case for Mindful Economics --- Colin Camerer 3 What's so Informative about Choice? --- Andrew Schotter 4 On Two Points of View Regarding Revealed Preference and Behavioral Economics --- Ran Spiegler 5 Some Thoughts on the Principle of Revealed Preference --- Ariel Rubinstein and Yuval Salant 6 Mindless or Mindful Economics: A Methodological Evaluation --- Dan Hausman Part Three: New Directions for Normative Economics 7 Choice Theoretic Foundations for Behavioral Welfare Economics --- Douglas Bernheim and Antonio Rangel 8 Revealed Mistakes and Revealed Preferences --- Botond K?szegi and Matthew Rabin 9 The Economist as Therapist: Methodological Ramifications of Light Paternalism --- George Loewenstein and Emily Haisley Part Four: New Directions for Positive Economics 10 Look-Ups as the Windows of the Strategic Soul --- Vincent Crawford 11 Revealed Preference and Bounded Rationality --- Douglas Gale 12 The Seven Properties of Good Models --- Xavier Gabaix and David Laibson 13 Researcher Incentives and Empirical Methods --- Edward Glaeser 14 Choice and Process: Theory ahead of Measurement --- Jess Benhabib and Alberto Bisin 15 Economic Theory and Psychological Data: Bridging the Divide --- Andrew Caplin

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