Wednesday, August 20, 2008

The Paradox of Economists Giving Advice


Economics usually assumes rational behaviour, and so the very idea of a self-help book or a problem page such as “Dear Economist” is subversive to economic orthodoxy. Rational economic agents don’t need self-help books, and they don’t write to problem pages either. If we admit that people need advice, we chip away at the foundations of most economic thought. That is strangely reassuring.
-- Tim Harford reviewing Discover Your Inner Economist

(HT Tyler Cowen)

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