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Cambridge Journal of Economics 2005 29(6):909-926; doi:10.1093/cje/bei077
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© The Author 2005. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Article

Economics and psychology in the twenty-first century

Peter E. Earl*

* University of Queensland

Address for correspondence: School of Economics, University of Queensland, St Lucia, Brisbane, QLD4072, Australia; email: p.earl{at}economics.uq.edu.au

Abstract

This paper begins by exploring four different possible forms of relationship between economics and psychology, which have different connotations in terms of the relative status of the two disciplines. It then focuses on the future for one of these, psychological economics. After setting out the hardcore axioms and positive and negative heuristics of a research programme in psychological economics, it explores institutional and psychological barriers to the success of such a research programme in the context of both research and teaching.

Key Words: Psychological economics • Behavioural economics • Bounded rationality • Scientific research programme

JEL classifications: A12, A14, A20

Manuscript received January 7, 2004; final version received January 4, 2005.


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