What Economists Should Do: In Defense of Mainstream Economic Thought

There is controversy among economists over just what it is that economists should do.

The controversy is centered on the question whether what is called “neoclassical” or “mainstream” economics provides the appropriate template for performing economic analysis. Neoclassical economics is based on the principle that economic behavior is guided by “rational choice,” i.e., choice based on reason rather than sentiment.

Challenges to this principle come from several fields of study: behavioral econ...