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# (p. 651) Subject Index

(p. 651) Subject Index

Addiction, xvi, 87, 248, 258, 261, 264–274

Counterexample to the rational agency model, 264

Neural signature of, 260

Neuroeconomic model of, 248

Agency, 15, 16, 136, 137, 246–248, 252, 255, 257, 264–265, 273

Concept of, 245

Definition, 135

Human, 111

Model of human, 584–585

Neoclassical model and specification of, 139

Rights and the protection of agency, 590

Agent‐based computational economics (ACE), 228–230

Agent based model, 376–382

Aggregate

Data, 401–402

Demand curves, 470

Demand, Supply, 4

Determinants of social well‐being, 600

Economic entities, 461

Factors and marginal products, 461

Gross National Product (GNP), 611

Index of social well‐being and wealth, 600

Manipulation of the interest rate and the, 391

Marginal productivity, 465

Market phenomena, 470

Measures, 393

Modeling and economic theorizing, 88

Money holdings, 387

Outcome, 400

Output, 387

Price level, 398

Processes, 470

Quantities, 400

Quantities, Economics of, 387

Rational‐expectations hypothesis, 404

Social well‐being and individual well‐beings, 595

Aggregates

Billiard ball causal relations among, 402

Causal interactions of economic, 403

Maximizing individuals and, 464

Physical, 399

Properties of the, 398

Relationships between, 400

Relationships between microeconomics and, 402

Representative‐agent and economy wide, 389

Searlean account of macroeconomic, 400

Analytic results, 374

Animal markets, 249

Approximate,

Claims, 38

Solutions to analytically intractable models, 374

Solutions vs. exact solutions, 374

Truth of theories in actual science, 74

Arrow‐Debreu, 129

Arrow‐Debreu‐McKenzie axiomatic general equilibrium rational choice models, 228–229

Artificial intelligence (AI), 228–229

Assumptions

Evolutionary theory, replication and, 170

Game theory, 190

(p. 652)
Idealizing, 78

Falsity of, 78

Fehr and Schmidt, 201

of Microeconomic model of the firm, 458

Perfect competition, 458

Perfect knowledge, 103

Robustness of altruistic preferences, 195

Selfishness, 285

Small‐country, 399

Small‐relative‐to‐the‐market, 399

Surrogate models and, 78

Auctions, 66

Assignment of spectrum property rights, 314

Competitive market mechanisms and, 313

Efficiency, 314

Game theory models of, 323

Laboratory, 320

Mock, 321

Simultaneous, 321

Automated Trading Desk, 381

Axiom

Cardinality rules, 520

Expected utility theory, 226

Independence, 226

Pareto principle, 526

of Revealed preference theory, 190

Selfishness, 190

Welfare and convexity, 512

Bayesian Averaging of Classical Estimates (BACE), 438

Behavioral,

Characteristics of auctions, 319

Economists, 348

Hypotheses, 159

Observations and experimental approach to game theory, 159

Psychology, 381

Rules and social norms, 179

Sciences, 254

Types and game theory, 166

Bid/bidding, 310–311

Auction format and size of, 328

Competitive, 316

First‐price auctions, 326

Joint, 314

Minimum, 313

Open‐or‐sealed, 316

Packages or individual, 317

Sealed, 318

Simultaneous, 321

Simultaneous or sequential, 317

Spectrum, 324

Strategic interaction between, 328

Winning, 320

Biology, 59–60, 64–65, 75, 246, 434

Economics in contrast to, 88

Evolutionary theories and, 165

Philosophy of, 59

Replicators in, 170

Self‐organizing systems and, 372

Black‐Scholes model of asset pricing, 371–372

Calibration methodology, 402

Capabilities, 526, 542

Altering of, 27

Calculation of, 521

Central human, 592

Comparison of, 529

Definition of, 517

Human development index (HDI) and, 624

(p. 653)
Human well‐being and, 584

Inferences regarding, 519

Measurement of, 531

as Opportunity sets, 592

Public policy and equalization of, 531

as Well‐being, 591

Causal

Assumptions, 471

Claims, 420

Conditions, 472

Equations and level invariance, 413

Equations and modularity, 414

Factor in growth, 472

and Functional notions, 463

Principles, 414

Relations between socio‐economic status and health among elderly Americans, 411

Systems and triangular structures, 414

Systems with probability measures, 413

Theory, 416

Causality, 412, 414–417

Economic and philosophical studies of, 410

Invariance theories of, 411

Irreflexive and asymmetric, 413

Modularity and, 414

Regression tests of, 464

Suppes (or Granger‐style) theory of probabilistic, 411

Tests for, 411

Causation, xvi, 37, 42–43, 48–52, 290–293, 416–419, 421

Deterministic case, 292–293

Inference from experimental data, 401

Granger, 10

Hendry, 420

High level methodology and, 290

Hoover, 420

Indeterministic case, 293

Mutual, 468

Probabilistic dependence and, 416

Test for, 412

Chinese room argument, 229

Classical utility theory, 541–542

Communitarian institutions, 617

Complex systems and nonlinear dynamics, 232

Computational

Biology, 372

Complexity, 376

Complexity and technological constraints, 375

Economists, 377

Load problems, 376–377

Models, 380–382

Physics, 372

Processes, 373

Resources, 376–377

Solution, 376

Systems, 382

Techniques, 379

Techniques in neuroeconomics, 372

Theoretical economics (CTE), 373–377

Consequentialism, 217

Data

Aggregate, 402

Based automation, 441

Based econometric modeling, 442

(p. 654)
Correlations, 412

Cross‐country, 468

Dependence, 425

Diagnostic testing and, 432

Distribution of, 434

Economic experiments, 401

Economic theory, construction of computational models and, 376

Empirical, 383

Experimental, 401

Forecasting and, 432

Hypotheses and, 467–468

Interpretation of models and, 456

Local patterns in, 426

Microeconomic, 391

Mining algorithm, 448

Mining races, 445–446

Mining, risks of, 428

Modeling strategies and, 427

Observed, 427

Partition, 442

Real‐world, 383

Regression analysis and, 463

Repeated use of, 426

Simulated, 383

Snooping, 425–426

Subsamples, 440

Time‐series, 382

True model and, 440–441

Debrevian economics, 249

Deontology, 217

Depiction of human behavior and decision theory, 359

Design

Bottom‐up, 229

Dopaminergic system, 271

Economics, 307

First‐price auction, 323

Importance of auction, 313

Open auction, 322

Post‐test, 289

Reincarnation theory, 358

Development

Democracy, poor countries and economic, 591

as Economic growth, 607

Freedom and, 620

Growth and, 473

Human Development Index (HDI) and, 624

of Modern capitalist system, 462

Poor countries and economic, 584

Public policies and, 585–586

Rural poverty and, 469

Discovered preference hypothesis, 227

Econometrics, 401–402, 424, 426–427, 429, 431, 433, 446–447

Empirical results in, 447

(p. 655)
Haavelmo's account of, 401

Health and status, 410

Methodologies and calibration methodology, 402

Modeling algorithms and, 445

Post estimation model evaluation, 432

Research, 434

Statistical inference in, 436

Statistics and, 426

Techniques, 411

Theory of, 425

Economic development, xv, 584, 600, 608

Government and, 609

Human Development Index (HDI) as a measure of, 624

Population growth and, 615

Process of, 601

Economic growth, xiv, 23, 49, 100, 126, 438, 455

Common processes in, 464

Development as, 607

Poverty and, 614

Prerequisite for, 131

the Quality of, 609

Redistribution and, 612

Role of institutions on, 469

Education, 80, 104–105, 471, 580

American higher, 113

Black children, South Africa and, 623

Determinants of well‐being and, 601

Development economics and the role of, 470

Expenditure on, 598

Fertility and female, 614–615

Labor markets, hiring and, 485

as a luxury, 601

Performance of children, 624

State dominated structure of, 109

State supply of, 601

Einstein‐Smoluchowski theory, 291

El Farol bar problem, 236

Ellsberg paradox, 199

Empathetic,

Equilibrium, 556

Identification, 553

Preferences, 551–556

Scale, 555

Utility function, 554–555

Equilibrium, 63, 100, 110, 127, 133, 136–137, 143, 246, 256

Basin of attraction and long run, 375

Determinants of growth and, 455

Dynamic convergence to, 138

Empathetic, 556

Explanatory models and, 460

Fairness, 203

Fixed point, 126

Interdependence conditions of, 114

Joint, 255

Learning of and Game Theory, 19

Marshallian partial, 115

Money and, 397

Monopolistic, 82

Neoclassical growth theory and, 463

Price, 320

Reflective, 216

Sequential, 257

Stability of, 463

Static, 138

Subgame perfect, 191

Unemployment as an outcome of, 485

Wage distributions and, 480

Wage equalization and, 492

(p. 656)
Zero‐communication information, 436–437

Ethical

Axioms, 596

Considerations and determinants of utilities, 597

Evaluation of social states and democratic voting rules, 602

Foundations of economics, 582–584

Foundation of Human Development Index (HDI), 624

Theories and plurality of human values, 595

Values, 599

Values and social well‐being functions, 595

Ethics

Aristotelian, 601

Development and, 609

Differences in, 581

Diverse, 580

Individual and social well‐being and, 593

Perceptions of the world and diverse, 581

Evolutionary explanations in economics, 337–340, 345, 350, 352–353, 362

Tinbergen's four questions, 340–345

Evolutionary

Account of Nash equilibrium, 169

Agent, 238–240

Cultural dynamics, 251

Dynamics, 257

Dynamic and replicator dynamic, 346

Ethology, 254

Genetic dynamics, 251

History of prosocial behavior, 190

Process, 239

Psychology, 381

Social dynamics, 251

Theories, 165

Theory replication, 170

Experimental

Auction design, 314

Behavior, 179

Conditions, 285

Game theory, 238

Games and framing effects, 360

Investigation and robustness, 193

Investigations of social preferences, 191

Isolation, 79

Knowledge, 299

Method, 289

Models, 293

Neuroeconomics, 225

Relational robustness, 195

Statistics, 426

Work on social preferences, 189

Explanation, 5, 17, 36–41, 49–52, 84, 101

Ad‐hoc, 86

Aggregate behavior, 239

Cause and, 48

of the Causes of growth, 456

Eductive, 394

Evolutive, 394

General, Situational, 28

How‐actually, 86

Marginalist, 462

Neoclassical, 101

Neoclassical growth theory, 468

Neoclassical growth tradition, 463

Non‐human interactions, 250

Non‐self‐interested aspect of behavior, 214

Ontological constraint on, 89

(p. 657)
Path‐Dependent, 14

Partial/possible, 86

Prediction and, 263

Prosocial behavior in laboratory games, 196

Real world phenomenon and causal, 325

Scientific, 396

Selection process and, 169

Shared principles and, 71

Teleological, 389

Ultimatum games, 174

Phenomenon, 86

Exxon, 395

Fiscal policy, 388

Freedom

Cardinality rule and, 520

Constituents of poverty and, 517

Development and, 620–621

Evaluation of, 521

of Expression, 590

Flexibility and, 592

Functionings and, 516

Indifference between no choice situations and, 519

Independence and, 520

Maximization of, 519

Measurements of, 519–521

Personal, 108

of Speech, 592

Strict monotonicity and, 519

Will and, 111

Game determination, 256

Game theory, 11, 13–16, 18, 19, 21–23, 65–66, 104, 106, 114, 118–119, 123, 128, 132, 138, 159, 163, 233, 249, 284–85, 306, 310, 470

Analytic narratives, 469

Auction designs based on, 314

Behavioral Ecology and, 19

Biology and, 18

Common knowledge in, 100

Conventional assumptions of, 190

Convergence of populations on Nash equilibria and, 338

Decision theory and, 161

Displacement of Walrasian model by, 137

Equilibrium behavior and, 173

In Context of behavioral sciences, 29

Introduction of complexity into models, 26

Morgenstern, O., and role in invention of, 103

Nash, 141

Noncooperative, 256

Personal utility and, 28

Political applications of, 170

Proximate causes in evolutionary, 350

Public choice models, 23

Replicator dynamics and evolutionary, 347

Research, 235

Significance of, 127

Gross Domestic Product (GDP), 387, 389–390, 426, 438

Conditional convergence and, 459

Deflator, 393

Growth, 398

Mauritius, 472

True, 427

General algebraic modelling system (GAMS), 375

General equilibrium theory, 6, 10, 36, 41–42, 64, 129, 132–133, 228–229, 232

Augmented Solow model and, 458

First theorem of welfare economics and, 4

Microeconomic account of, 387

Monopolistic competition and, 82

(p. 658)
Perfectly competitive markets, welfare optima and, 20

Rational choice models, 228

Second theorem of welfare economics and, 4

Topology, fixed points and, 55

Genes, 46, 61–62, 170, 360, 362

Human behavior and, 338

Natural selection and, 343

Replicators and, 170

Genetic

Algorithms, 381

Constitution and response to environmental stimuli in warblers, 339

Information‐theoretic accounts, 382

Recombination and natural selection, 340

Glutamate, 268–269

Gross National Product (GNP),

Democracy and growth in, 620

as a Development index, 608

as an Indicator of economic progress, 585

Inequalities and distribution of, 611

and HDI as measures of social well‐being, 619

Political and civil liberties and growth in, 620–621

Poverty and growth in GNP, 609

Sub‐Saharan Africa and decline in, 619

Growth

Aggregate production functions and, 465

Determinants of, 455

East Asian, 472

Economic determinants of, 460

Education as a necessary requirement for, 470–471

As an explanandum, 457

Explanation of, 455

Export process zones (EPZs) and, 472

Government consumption and, 459

Human capital and, 466

New institutional economics and, 469

Labor markets and, 494

Openness to trade and, 472

Political systems and, 473

Rate, 459

Reduction of poverty and, 495

Regularities in the factors causing, 464

Sectoral, 493

Socioeconomic determinants of, 469

Social factors and, 460

Solow, 457

Variables, 467

Haavelmo distribution, 442

Happiness, xiii, 541

Measurement of, 561

As a state of mind, 566

Studies, 542

Subjective assessment of, 563

Health, xv

Bundles of goods and derivation of, 548

Capability sets and inclusion of, 592

Care in the Indian sub‐continent, 604

Consequences of stress, 564

Desirability of good, 592

Human capital and improvements in, 610–611

Improvements in productivity and investments in, 611

Insurance, 490

Measures of mental, 570

Measures of public, 588

Mental, 562

Policy choices relevant to, 22

Programs and poor countries, 597

Human capital, 80, 117–118, 126

Accumulation of, 21

Aristotelian ethics and the economics of, 601

Augmented Solow model and, 458

Competitive economies and distribution of, 625

Economic development and, 610

Growth and, 466

Health and, 611

Knowledge as, 125

Separation of physical capital from, 458

Human Development Index (HDI), 518, 593
(p. 659)

Ethical criteria of, 620

GNP and, 619

Lack of ethical criteria in, 624

Measure of social well‐being and, 619

Sub‐Saharan Africa, GNP and, 619

Human needs, 516

Idealization, 26, 85, 328, 376, 391

Applicability conditions of a model and, 81

Approximation and, 308

Economic models and, 70

Economic models and excessive, 373–374

Folk‐psychology and, 360

Isolation by, 93

Scientific theorizing, 69

As Strategic falsehoods, 78

Walrasian auctioneer and, 294

Indifference between no choice situations, 519

Individual and Social Well‐Being, 593

Inequality, 178

Advantageous, 175

Growth and, 470–471

Labor income, 477

Measures of income, 480

Model of Fehr and Schmidt, 200

Models of aversion to, 175

of total incomes, 477

Inexactness, 38, 41–42, 47–48, 52

Isolation and, 80

Predictive implications and, 80

Separateness and, 81

Inflation rate, 387

Information, 15, 17, 26, 49–50, 52, 73, 92, 100, 102–105, 117, 119–121, 125, 130, 134–136, 140, 142–143, 161, 172, 179, 194, 201

Availability of, 16

Bid, 316

Capacity to transmit, and money, 81

Complete, 231

Compression, 383

Context‐specific, 289

Data and, 382

Databases, 482

De‐centralization of, 129

Differences, 211

Efficiency, 140

False, 14

Full, 14

Full rationality and, 172

Generation of truthful, 91

Genetic material and, 339

How‐possibly explanation and, 86

Inductive index, 118

Irrelevant, 176

Mathematical expectation of a variable, conditional on available, 404

Maximum quantity of useful, 23

Modeling of, 124

Nash equilibrium and, 14

Nongenetic transmission of, 355

Open auctions and, 321

Public good, 129

Real systems and, 77

Revelation of, 130

Sensory, 268

Space, 130

Theoretic accounts of genetics, 382

Theoretic accounts of physics, 382

Unrealistic symmetries of, 11

Value of, 102

Way the world works (www) and, 88

(p. 660)
Innovation

of Economics, 10

Economics of, 106

Epistemological, 124

Labor economics, 125

of Mechanism design, 114

Interest rate, 431

Invariance, 410–416, 418, 420

Hendry's, 416

Level, 413

Modularity and, 414

Probability structure, 427

Weak exogeneity and, 415

IS‐LM‐aggregate supply models, 404

Isolated state, model of, 71

Labor

Codes, 483

Costs, 483

Demand curve, 493–494

Demand elasticities, 484

Diminishing marginal revenue product of, 481

Earnings, 487

Income, 477

Income inequality, 477

Infinitely elastic supply curve of, 494

Legislation and costs of, 483

Marginal revenue product of, 484

Price of, 494

Productivity of and investment in nutrition and health, 611

Shortages, 498

Technology adapted to, 487

Turnover, 485

Labor markets,

Antipoverty efforts and, 477

Conditions, 478

Developing countries and, 481

Disequilibrium in, 493

Economic development and, 477

Equilibrium, 499

Export sector and, 493

Fragmentation, 479

Harris‐Todaro model of, 495

Inelastic nature of, 486

Interventions in, 484

Modeling, 479

Models of, 476

Neoclassical model of, 493

Profit maximization and wages in, 485

Taiwanese, 498

Model of unlimited supply of, 493–494

Wages and entry into, 481–482

Lagrangian multipliers, 371

Land use, economic models of, 372

Laws, 5–8, 10, 36–37, 39, 41, 43, 46–51, 59–63, 65, 70–71, 115, 299, 381

Approximate, 38

of Arithmetic, 546

in Biology, 61–62

Codified, 522

Constitutional, 522

Discovery of invariant universal, 290

(p. 661)
Mathematical universalities as, 462

of Mechanics, 403

Regularities and, 81

Social variables, growth and, 459

Three paradigms of Neoclassical information and, 116

Learning, 111, 170, 235, 297

Animals, 19

Associative, 268

Capacities, 135

Culture and, 191

as a Driver of cultural evolution, 354

Evolutionary game theory and, 354

Evolving rules and, 89

Fixed rules and, 89

Models, 171–172

Molecular accounts of, 261

Neural, 264–265

Ontogenetic development versus evolution and, 355

Process, 262

Public Choice Models and, 23

Reward, 268

Reward‐system, 260

Sociopathic behavior and, 199

Trial‐and‐error, 227

‘when'’, 262

Macroeconomics, xiv, 10, 131, 132

Antireductionist, 405

Applied, 400

Characterizations of, 387

Concerns of, 386

Data sets in, 438

Division between microeconomics and, 386–387

Empirical, 402–403

Intentions of individuals and, 398

and the Interaction of policy makers with the aggregate economy, 398

Methodological individualism, 388

New classical, 233

Optimization problems and 400

Practical, 388

Marginalist explanations, 462

Markets, xv, 15, 21, 23, 57, 113, 125, 140, 233, 240, 257, 382

Aggregate, 470

Agricultural product, 493

Clearing prices, 379

Communication, 313

Conditions for the clearing of labor, 481–486

Difference between real‐world and hypothetical, 294

Disequilibrium in labor, 493

Distance from, 472

Economic development and labor, 477

Experimental, 296

Failure, 455

Formal‐informal linkages in labor, 491

Free, 108

Harris‐Todaro labor, 495

Ideas and commodities, 125

Incomplete, 127,

Knowledge conveyed by, 111

Land, 379

Monopolistic, 14

Monopoly, 113

Nonhuman animals and, 19

Optimal pricing in, 379

Rural credit, 469

Simple, 469

Taiwanese labor, 498

Undifferentiated labor, 476

MATLAB, 375

Methodology, 10, 15, 253

Auction design, 321

Calibration, 402

Experimental economics, 280

Falsificationist, 56

High‐level, 290

Individualist, 389

Instrumental, 295

Low‐level, 293

Microeconomic theory and, 18

Plott's, 322

Realist, 93

Revealed preference theory and, 16

Scientific, 92

Traditional issues in, 92

Microeconomics, 55, 104, 115, 125–126, 160, 246, 259

American, 113

Fundamental theory of, 41

Laws of, 6

Methodological fundamentals of, 41

Models of, 306

Modern, 103

Unification of macroeconomics and, 233

Microfoundations, 389, 402, 404

Fundamental notion of, 394

Ideology of, 388

of money, 396

Macroeconomics and the need for, 388–389

Microprocessing, and Innovation of Economics, 11

Models, 7, 10–13, 15–16, 18, 21–22, 25–26, 39, 41, 48, 66, 74–76, 78, 89–90, 113, 118, 130, 133, 135–136, 140, 180, 212, 245, 281, 428, 432

Abstract, 371

Ad‐hoc features in, 71

Agent‐based, 376–382

Agricultural land use, 79

Applied, 437

Approximate solutions to, 374

Arrow‐Debreu, 114

Association, 261

Augmented Solow, 458

Austrian capital theory, 110

Behavioral ecology, 19

Benchmark, 439

Calibrated, 403

Capacity and, 312

Choice, 142

Closed economy, 83

Collective intentionality, 399

Complexity and, 374

Computational, 380–382

Computational demand of, 377

Computational general equilibrium, 372

Computational theoretical economics (CTE), 375

Computationally tractable, 373

Cosmological, 247

Development, 26

Dual economy, 488

Economic systems and, 372

Efficiency wage, 485

Endogenous growth, 21–22

Evaluation, 431–432

Evolutionary processes, 353

(p. 663)
Experiments and, 80

Explanatory, 460

Exploratory use of, 380

Fehr‐Schmidt, 200–203

Formal‐sector labor, 491

Game theory auction, 332

General Equilibrium, 11

Generalized unrestricted (GUM), 443

Global stability and dynamic, 375

Gravity, 22

Grossman‐Stiglitz, 133

Growth, 494

Growth‐accounting, 459

Hausman‐McMullin, 321

Heckscher‐Ohlin, 22

vs. High‐level theories, 288

Human behavior, 174

Idealized, 391

Imperfect competition, 114

Increasing returns to scale, 470

Inductive inference, 126

Inequality aversion, 175

Innovation, linear model of, 131

Inputs, 432

Idealised, 81

Intersectoral‐shifts, 493

Intractable, 11

IS‐LM‐aggregate supply, 404

Keynesian macroeconomic, 484

Learning, 171–172

Leontief input‐output, 377

Machine logic, 118

Marginalist, 4

Markov process, 10

Metaphors and, 80

Mid‐level experimental, 293

Mill/Cartwright capacity view of, 325

Minimum‐wage, 493

Modern‐sector‐enlargement, 493

Neoclassical labor, 493–494

New growth theory, 464

Normative and Descriptive, 380

Oligopoly, 232

Open formula view, 322–326

Opportunity cost‐minimization, 17

Orthodox, 136

Outputs, 432

Overparameterized, 443–444

Parsimonious, 440

Pragmatic, 115

Preferred, 440

Properties of, 77

Public Choice, 23

Rabin, 203–204

Representations and targets, 75

Science as a disordered plurality of, 263

Scientific methods, 288

Segregation, 379

Semantic, 119

Simplicity and, 82

Simulation and, 372

Single sector, 496

Social reality and, 94

Solar system, 83

Solow growth, 456–458

Specification, 433

Standard maximization, 116

Statistical, 436

Structural, 447

Structuralist view, 308

Time series, 432–433

Timing, 261

(p. 664)
of Top‐ down centrally planned economies, 379

Toy, 133

Tractability assumptions and, 82

Traditional theoretical economics (TTE), 375–376

Two country trade, 83

Ultimate causes in evolutionary processes, 354

Unifying, 87

Unlimited‐ supply‐of‐labor, 493

Unrealistic assumptions and, 71–73

Unrestricted, 447

Monetary

Character, 396–397

Expected payoff, 197

Gains, 283

Policy, 388

Properties, 396

Resources of the individual, 398

Units, 390

Monetization, 397

Money

Character of, 397

Collective intentionality and, 396

Concave utility functions and, 546

Constitutive rules and, 396

Decreasing marginal utility of, 545

Demand, 387

Empathetic preferences and extraction of, 552

Holdings of aggregate, 387

Human motivation and, 542

as an Institution, 397

Microfoundations of, 396

Paper, 396

As a resource, 522

Risk aversion and, 545

Search models of, 396

Speculative demand for, 387

Well‐being and, 568

Monotonicity, 519

Moore's Law, 377

Nasdaq, 381

Nash equilibrium, 14, 19, 101, 123, 130, 135, 137, 143, 159, 162–165, 168, 170–172, 207, 209, 231, 283, 346–347, 357

Convergence to, 173

Cooperative norm and, 181

Evolutionary account of, 169

Evolutionary dynamic and, 346

Refinements of, 164

Strict, 168–169

Tit‐for‐tat, 205

Natural Selection, 46–47, 60–65, 165, 167, 172, 250, 273, 344, 352, 355, 358

Tinbergen's classification and, 343

Neoclassical economics, 99, 100–101, 103–105, 107, 113, 115, 124, 132, 134, 136, 143–144, 228, 290

Epistemic approach to, 116

Information, 129

Neoclassical growth theory, 455–461, 463, 465–469, 471, 473

Description of equilibrium conditions, 463

Jevons's view of, 462

Regularities and causes, 463

Solow, 465

Neural, 264

Activity, 235

Basis for human behavior, 235

Circuits, 199

Damage, 199

Evidence and Phenomenon Robustness, 199

Functioning, 235

Networks, 228–229

Processes, 269

Properties of a person, 265

Regions, 197

Signature of addiction, 260

Structures, 200

Neuroeconomics, xvi, 17, 24, 28, 106, 225, 233–235, 237–238, 245, 248, 258–259, 263–265, 271

Glimcher's version of, 348–350

Subset of economics, 132

New York Stock Exchange (NYSE), 381

Nonlinear business cycles, 372

Omnibus Budget Reconciliation Act, 313

Ontogenetic

Development of organisms and proximate causes, 340

Organization theory, 106

Philosophy, 100–102, 104, 110, 114, 134, 144, 245, 247, 300

of Chemistry, 73

Developments in, 35

of Economics, 248–249

Empirical approach to, 39

of Geology, 73

Logical empiricist, 48

Mind, 290

Postpositivistic, 69

Pragmatism and, 248

Scientific realism in, 74

Poverty, 22, 23, 477, 480

Definition of human needs and, 517

Economic growth and reduction of, 495

Labor market interventions and, 484

Traps, 21

Predesignationist rule, 427

Preferences, 565, 567

Altruistic, 552

Attitudes to risk and, 545

Cardinal utility functions and, 550

Empathetic, 551–556

Inconsistency with Von Neumann and Morgenstern theory, 546

Nonsatisfaction of, 565

Personal, 553–554

Risk‐loving and, 545

Scales, 555

Spiteful, 552

Sympathetic, 551–552

True, 567

Probability

Calculus, 466

Distribution, 393

Laws of, 401

Models, 401

of Spurious results, 430

Statistical significance and, 471

Structure of events, 427

of a Type II error, 431

Psychology, 66, 100–101, 104, 109, 118, 121, 128–129, 134, 136, 246, 248, 254, 287, 295

Academic, 103

Behavioral, 381

Behaviorist, 110

Cognitive, 233

Contemporary schools of and rejection of, 110

Experimental branches of, 286

(p. 666)
Social, 293

Rational expectations, 10, 86, 89, 106, 123, 126, 133, 142, 394, 397, 404–405

Eductive, 394

Evolutive, 394

Rationality, 19, 26, 39–41, 88, 103, 110, 118, 120, 135–136, 143, 159–161, 163, 174, 228, 236, 254, 324

Adaptive, 357

Agents and, 79

Anthropology, 57

Assumption of perfect, 310

Bureaucratic, 124

Consistency and, 543

Ecological, 358

Full, 172

Human agents and the violation of prescriptive rules of, 380

Individual, 162–163

Nash, 283

Procedural, 137

Prudent behavior, 545

Scientific, 36

Structure of games and, 163

Real Business Cycle (RBC), 428

Realism, 38, 43–45, 68, 73, 90, 93–94, 101, 327, 379

Augmented Solow model and, 458

Conception of the individual and economic, 224

Debate between scientific antirealism and, 327

Economic, 88

Exogeneity assumption and, 226

Global, 75

Idealizations and, 373

Rhetorical, 91

Refutation, 37

Regressions, 426, 438, 463

Coefficient, 459

Growth, 438

Multiple, 464

Neoclassical growth theory, 459

Residuals, 426

Tests of causality, 464

Resemblance, 76

Resourcist approaches (to welfare), 521–522

Revealed preference theory, 543

Rights

‐based theories, 590–591

Capabilities and, 591

Codified laws and, 522

Imposition of ownership, 291

Intellectual property, 141

Inviolability of fundamental, 591

Lexicographical ordered hierarchy of, 591

Local commons and, 616–617

Maximization of, 525

Merit goods and, 596

Pareto principle and, 527

Spectrum property, 314

Universal Declaration of Human, 521

Utility function and, 527

Risk aversion, 545–546

Robustness (in experimental games), 191, 215

Cause effect relation, 292–293

Detection, 193–194

Importance of, 195–197

Neural evidence and phenomenon, 199–200

(p. 667)
Preferences under repetition and, 206

Scales of observation, 251

Science, 36–37, 39, 43, 55–56, 58, 65–66, 73–74, 90, 94, 101, 103–105, 113–115, 131, 135–136, 247–248, 254–259, 263, 270

Addiction, 271

of the Allocation of scarce resources and economics, 401

Behavioral, 55–56

Conventional canons and nonconformity to, 73

Goals of, 43

History of, 264

History of natural, 291

Inductive logic of, 462

Instrumental approach and, 288

Laboratory, 300

Logic of, 466–467

Methodological revolutions in, 281

Military control of, 131

Military decision theory, 102

Models in, 307–308

Networks in, 232

Organization of, 125

Political, 87

Realist conception of, 70

Socio‐epistemic system, 94

Social, 36, 38, 55, 57, 63–64, 69, 70, 72, 87, 92, 102, 108, 110, 117–118, 136, 197, 286, 374, 397, 455

Theories and truth of, 74

Theoretical modeling in, 75

Tool‐based, 281

Sustainable development

System,

Addiction‐trained reward, 269

American higher educational, 113

Capitalist, 462

Computational, 382

Data generating, 440

Dopamine, 260–262

Economics as complex adaptive, 229

Dynamic, 247

Evolutionary, 236

(p. 668)
Exchange, 114

Midbrain reward, 265

Nervous, 348

Neuroeconomic, 273

Nonlinear dynamic, 236

Non‐symbolic, 229

Political, 472–473

Prediction of states of, 374

Price, 128

Representation of preferences and beliefs in, 359

Scholastic, 487

Sensory classification, 229

Signaling, 348

Simulated, 379

Social, 380

South Korea and introduction of a minimum‐wage, 483

Substitute, 77

Surrogate, 77

Symbol grounding as an explanation of cognition, 229

Uncontrollability of, 281

Unemployment, 488

Telecommunication licenses, 306

Theoretical economics, 74

Three paradigms of neoclassical “Information,” 116

Trade unions, 483

Traditional theoretical economics (TTE), 373–376

Transferable utility, 551

Trickle down view of economic growth and employment, 609

Trust games, 192

Ultimatum game (UG), 20, 135, 173–176, 178–181, 191, 194–195, 197, 201–202, 204, 206, 209–214, 227

Ordinary, 201

Uncertainty, 43–45, 88, 117, 125, 127, 128, 131

Choice under conditions of risk vs. conditions involving, 199

Science and, 74

Unemployment, 484–486, 491, 499–500

As an equilibrium outcome, 485

Definition of, 488

Dualistic labor‐market model with no, 495

Harris‐Todaro equilibrium and, 496

Informal sector, 490

Insurance, 488

Involuntary, 581

Kenya and urban, 498–499

Rate, 387

Rates in developing countries, 487

Rural, 499

Rural agricultural, 490

Urban, 478

Universal Declaration of Human Rights, 521

Utility, 104, 113, 115–16, 135, 161, 165, 170, 176, 260

Cobb‐Douglas, 389

Content of, 525

Decreasing marginal, 523

Definition of, 541

as a Derived notion, 587

Determination of, 544

Differences between individuals and, 531

Direct, 520

Existence of, 132

Fehr‐Schmidt function, 175–177

Function, 174, 179–181, 189, 200–202, 204, 209, 230, 246–249, 256, 263–264, 267, 272–273, 357, 360–361, 397, 522–523, 527, 531, 554, 571, 587

(p. 669)
Function and concavity, 546

Growth models and, 470

Happiness and, 523

Indirect, 520–521

Maximization of and gradient, 136

Maximum, 137

Measurement, 570

Merit goods and, 596

Of a nation, 523

Objective happiness and, 563

Optimization of, 134

Preference orderings and, 586

Primary goods and, 522

Primitive concept of, 588

Relative, 529

Social, 227

Theory of marginal, 386

Transferable, 551

Units of, 540

Wages, 479–480, 500

Choice of jobs and, 489

Constant, 498

Differentiation of, 480

Expected, 499

Falling unemployment and, 478

Floors, 479

Informal, 499

Institutional forces and, 495

Labor market conditions and determination of, 495

Mathematical expected, 495

Minimum, 483

Multinational corporations and, 483

Productivity and, 496

Public sector pay policies and, 483

Subsistence levels and, 493

Trade union membership and, 483

Unemployment and, 497

Urban informal sector, 500

Walrasian auctioneer, 294

Welfare, xiv, 4, 20–21, 23, 28, 41, 103–105, 195, 216, 256, 513

Aristotelian approach to, 516–519

Arrow's impossibility theorem and, 526

Comparisons across different individuals and, 530–531

Definition of, 513–514

Development economics and applied, 596

Dictatorial function of social, 526

Education and, 514

Elements of, 515

GNP as an index of, 585

Income and, 511

Indicators, 514

Individual preferences and, 515

Individual welfare and aggregate, 513–514

Institutions and, 526

Interpersonal comparisons and, 526–529

Kantian approaches to, 519–521

Material goods and, 514

Monotonicity of, 513

Mortality rate and society's, 514

Noncomparable ordinal information and, 525

Normative, 511

Ordinal framework and social, 527

Prewar concepts of, 103

Private preferences and, 527

Public expenditure and comparisons of, 513

Resourcist approaches to, 521–522

Rights and, 512

Satisfaction of preferences and, 512

(p. 670)
Social, 595

State, 589

Utilitarianism approaches to, 523–525

Welfarism, 515

Well‐being, xiii, 580

Accounts of national, 564

Approaches to the measurement of, 571

Bodily, 517

Capabilities as, 591

Capacities and, 592

Comparisons of subjective, 528

Composite or hybrid accounts of, 566

Concern for, 189

Determinants of, 598–601

Direct measures of, 596–598

Economic, health, social policies and, 564

Financial well‐being vs. concept of, 564

Food as a key determinant of, 612

Functions of social, 606

Happiness and, 567

Health and, 592

Inclusive wealth and, 619–620

Income and subjective, 563

Indexes of democracy and civil liberties and, 621

Indicators of, 568

Indirect measures of, 598

Interpersonal comparisons of, 583

Material, 517

Maximization of, 563

Money and, 568

National indicators of, 564

Objective accounts of, 566

Policy evaluation and, 594

Psychology and normative status of, 563

Subjective accounts of, 566

Voting rules and functions of social, 602

Wages and, 563

Wealth as an aggregate index of social, 600

Zero‐one rule and utility, 550