GB
GB
Jul 20, 2017 · 1 min read

Notes critical of modi are welcome and probably required at this stage of his administration. And there is some truth to the ‘halo’ argument. That said, the over-reliance on behavioral economics as the basis of analyzing him is self-defeating. Behavioral economics is highly suspect on many counts and has never offered any meaningful predictive power (vs good old neo-classical economics, with all its flaws). Its just a series of anecdotes and under-investigated ideas, which are for sure interesting and probably correct in some situations, but fail far more often than succeed in explaining social phenomena. Kahneman’s book helped re-popularize it, and his work with tversky was mostly brilliant, but it has for sure been taken too far without merit. The ‘nudge’ movement is already collapsing, with many broken promises. Its still, by a long distance, a minor and underdeveloped part of economics, not to be taken too seriously yet, but very exciting for sure.

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