Narrative Economics

Robert J. Shiller

No 23075, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This address considers the epidemiology of narratives relevant to economic fluctuations. The human brain has always been highly tuned towards narratives, whether factual or not, to justify ongoing actions, even such basic actions as spending and investing. Stories motivate and connect activities to deeply felt values and needs. Narratives “go viral” and spread far, even worldwide, with economic impact. The 1920-21 Depression, the Great Depression of the 1930s, the so-called “Great Recession” of 2007-9 and the contentious political-economic situation of today, are considered as the results of the popular narratives of their respective times. Though these narratives are deeply human phenomena that are difficult to study in a scientific manner, quantitative analysis may help us gain a better understanding of these epidemics in the future.

JEL-codes: E00 E03 E30 G02 N1 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-his, nep-hpe and nep-mac
Note: EFG
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Citations: View citations in EconPapers (72)

Published as Robert J. Shiller, 2017. "Narrative Economics," American Economic Review, American Economic Association, vol. 107(4), pages 967-1004, April.
Published as Robert J. Shiller, 2017. "Narrative Economics," American Economic Review, vol 107(4), pages 967-1004.

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Journal Article: Narrative Economics (2017)
Working Paper: Narrative Economics (2017)
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