The End of Theory

Financial Crises, the Failure of Economics, and the Sweep of Human Interaction

Business & Finance, Economics, Theory of Economics, Finance & Investing, Finance
Cover of the book The End of Theory by Richard Bookstaber, Princeton University Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Richard Bookstaber ISBN: 9781400884964
Publisher: Princeton University Press Publication: April 17, 2017
Imprint: Princeton University Press Language: English
Author: Richard Bookstaber
ISBN: 9781400884964
Publisher: Princeton University Press
Publication: April 17, 2017
Imprint: Princeton University Press
Language: English

An in-depth look at how to account for the human complexities at the heart of today's financial system

Our economy may have recovered from the Great Recession—but not our economics. In The End of Theory, Richard Bookstaber discusses why the human condition and the radical uncertainty of our world renders the standard economic model—and the theory behind it—useless for dealing with financial crises. What model should replace it? None. At least not any version we've been using for the past two hundred years. Instead, Bookstaber argues for a new approach called agent-based economics, one that takes as a starting point the fact that we are humans, not the optimizing automatons that standard economics assumes we are.

Bookstaber's groundbreaking paradigm promises to do a far better job at preventing crises and managing those that break out. As he explains, our varied memories and imaginations color our economic behavior in unexpected hues. Agent-based modeling embraces these nuances by avoiding the mechanistic, unrealistic structure of our current economic approach. Bookstaber tackles issues such as radical uncertainty, when circumstances take place beyond our anticipation, and emergence, when innocent, everyday interactions combine to create sudden chaos. Starting with the realization that future crises cannot be predicted by the past, he proposes an approach that recognizes the human narrative while addressing market realities.

Sweeping aside the historic failure of twentieth-century economics, The End of Theory offers a novel and innovative perspective, along with a more realistic and human framework, to help prevent today's financial system from blowing up again.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

An in-depth look at how to account for the human complexities at the heart of today's financial system

Our economy may have recovered from the Great Recession—but not our economics. In The End of Theory, Richard Bookstaber discusses why the human condition and the radical uncertainty of our world renders the standard economic model—and the theory behind it—useless for dealing with financial crises. What model should replace it? None. At least not any version we've been using for the past two hundred years. Instead, Bookstaber argues for a new approach called agent-based economics, one that takes as a starting point the fact that we are humans, not the optimizing automatons that standard economics assumes we are.

Bookstaber's groundbreaking paradigm promises to do a far better job at preventing crises and managing those that break out. As he explains, our varied memories and imaginations color our economic behavior in unexpected hues. Agent-based modeling embraces these nuances by avoiding the mechanistic, unrealistic structure of our current economic approach. Bookstaber tackles issues such as radical uncertainty, when circumstances take place beyond our anticipation, and emergence, when innocent, everyday interactions combine to create sudden chaos. Starting with the realization that future crises cannot be predicted by the past, he proposes an approach that recognizes the human narrative while addressing market realities.

Sweeping aside the historic failure of twentieth-century economics, The End of Theory offers a novel and innovative perspective, along with a more realistic and human framework, to help prevent today's financial system from blowing up again.

More books from Princeton University Press

Cover of the book Getting Incentives Right by Richard Bookstaber
Cover of the book Japan Transformed by Richard Bookstaber
Cover of the book Rethinking Private Authority by Richard Bookstaber
Cover of the book The Fate of Rome by Richard Bookstaber
Cover of the book Trust in Numbers by Richard Bookstaber
Cover of the book Parrots of the World by Richard Bookstaber
Cover of the book The Power of Cute by Richard Bookstaber
Cover of the book Communism's Shadow by Richard Bookstaber
Cover of the book A Shrinking Island by Richard Bookstaber
Cover of the book Jean Sibelius and His World by Richard Bookstaber
Cover of the book Income Distribution in Macroeconomic Models by Richard Bookstaber
Cover of the book At Lake Scugog by Richard Bookstaber
Cover of the book All the News That's Fit to Sell by Richard Bookstaber
Cover of the book Birder's Conservation Handbook by Richard Bookstaber
Cover of the book Private Government by Richard Bookstaber
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy