Household behaviour and policy analysis - speech by Martin Weale

In a speech delivered at the New Zealand Economists’ Network 2nd Annual Conference, Martin Weale discusses economic modelling and policy analysis with a particular reference to the limitations of analysis based round the concept of a representative agent.
Published on 14 December 2012

Martin Weale focuses on disaggregate models, which represent the economy as a collection of individual households in different circumstances, and their use to address important policy questions. In particular, Weale describes the way in which such models can be used to address a heterogeneous range of topics: the effects of credit constraints and fears about credit availability; tax structure; social security and pension arrangements; and influences on the take-up of education by mature students. Models of this type can also be used to explore the importance of myopia – one of the possible behavioural forms considered in behavioural economics.

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