 Rationality and Economic BehaviourSiro Lombardini Chapter 14 in The Dynamics of the Wealth of Nations, 1993, pp 384-402 from Palgrave Macmillan Abstract: Abstract Economists are looking for microfoundations of macroeconomics. Since an individual’s choices are constrained by decisions that cannot be interpreted as resulting from aggregation of individual preferences, we can also set the problem of what are the macrofoundations of microeconomics. There is a level of analysis that may help to solve both problems. It is the analysis of the interrelations between industry and markets as it has been carried out by Pasinetti (1981) in his Structural Change and Economic Growth. Some additional help to the understanding of these problems can come from a critical assessment of the rationality assumption that is usually made about individuals’ behaviour in microeconomics. In this chapter I shall try to move in this direction, by showing why rationality criteria for the system cannot be reduced to individual rational criteria as they have been defined in the context of utilitarism. Our analysis suggests that the two problems are interlinked. Keywords: Entrepreneurial Activity; Rational Behaviour; Economic Structure; Economic Behaviour; Rationality Principle (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22728-0_15 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-22728-0_15 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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