Neoclassical economic theory rules out systematic errors in consumption choice. According to the basic view, individuals know what they choose. They are able to predict how much utility an activity or
This note offers methodological comments on a recent (November 2014) Economic Journal article. The comments consider its use of a dynamic model – the inclusion of a lagged dependent variable – and its
The economics of "happiness" shares a feature with behavioral economics that raises questions about its usefulness in public policy analysis. What happiness economists call "habituation" refers to the
