Can Post Keynesians make better use of behavioral economics?

Abstract

In recent decades, there has been a growth in economic research programs loosely described as behavioral economics. Despite calls for closer engagement between behavioral and Post Keynesian economics, the impact of behavioral economics on the Post Keynesian literature remains relatively limited. In this paper, we examine the nature of behavioral economics and the case made by those who claim or demonstrate that it can make a contribution to Post Keynesianism. We also consider why to date behavioral economics has had such a restricted effect. We conclude that there is scope for further successful engagement between behavioral economics and Post Keynesian economics if it isbased on explicitly stated common ground, defined in terms of methodology.