The only way we are going to ameliorate pressing social needs is through public intervention.
George AkerlofRead
Economic theorists, like French chefs in regard to food, have developed stylized models whose ingredients are limited by some unwritten rules. Just as traditional French cooking does not use seaweed or raw fish, so neoclassical models do not make assumptions derived from psychology, anthropology, or sociology. I disagree with any rules that limit the nature of the ingredients in economic models.
Interpretation
What this quote means
Economic models should include a wider range of influences beyond traditional assumptions.
In this quote, George Akerlof argues against the restrictive nature of neoclassical economic theories, which, similar to traditional French cuisine, adhere to certain unwritten rules about what can be considered valid. He believes that just as French cooking should not be limited to specific ingredients, economic theories should evolve to incorporate insights from psychology, anthropology, and sociology to truly reflect the complexities of human behavior and economic interactions.
Themes
EconomicsModelsPsychologyAnthropologySociologyInfluence
In practice
Example use cases
In a discussion about the limitations of traditional economic models, this quote can illustrate the need for a broader approach.
More from George Akerlof
All quotes →Similar quotes
Hours later the blank sheet still stared at me, and I beat my fist against the desk in fury and fustration, striking it so hard my hand bled. That is how heavy a secret can become. It can make blood flow easier than ink.
Patrick RothfussRead
The Behaviorist cannot find consciousness in the test-tube of his science.
John B. WatsonRead
This nation is like a spring freshet; it overruns its banks and destroys all who are in its path.
Sitting BullRead
The Communism of the English intellectual is something explicable enough. It is the patriotism of the deracinated.
George OrwellRead
Taught to regard a part of our own Species in the most abject and contemptible Degree below us, we lose that Idea of the dignity of Man which the Hand of Nature had implanted in us, for great and useful purposes.
George MasonRead
The elemental fact, present in our consciousness every moment of our existence, is: I am life that wills to live, in the midst of life that wills to live.... The essence of the humane spirit is: Preserve life, promote life, help life to achieve its highest destiny. The essence of Evil is: Destroy life, harm life, hamper the development of life
Albert SchweitzerRead