A Quote by Jean-Jacques Laffont
Neoclassical (economic) theory can be described as systematic exploration of the implications of rational behavior in economics. Situations of uncertainty sometimes take the neoclassical paradigm of rationality to the limits of acceptability as a description of economic behavior. Nevertheless, if we consider neoclassical theory as an approximation to be tested empirically, it continues to have descriptive power. Indeed, the potential for falsification, which distinguishes neoclassical theory from some quasi-metaphysical theories, is its major asset. The neoclassical paradigm also leads to the construction of a relatively simple normative theory, which provides amode of thought for political economics.
by Jean-Jacques Laffont in The Economics of Uncertainty and Information
posted by Unknown at 23:09
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