Social and Behavioural Macroeconomics: Theoretical and Policy Perspectives

Despite significant theoretical advances in social and behavioural macroeconomics, little has been done to synthesise the disparate developments in these fields and point the way forward to future research directions and policy implications. This book reviews, unifies and extends diverse strands of thinking and shows how these theories can be used to improve macroeconomic modelling for policy development in a range of spheres. The book explores how the most empirically relevant socio-behavioural traits can widen the scope of macroeconomics to fruitfully address new issues and challenges, such as rising inequality, the change in the functional distribution of income (labour and capital shares), and a further understanding of the government spending multiplier.Chapters also address more traditional topics such as macroeconomic policy effectiveness, growth, saving and labour supply.Other, more open-ended themes of the book include whether the concept of individual rationality should be co