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June 1, 1995

[SSJ: 11] RE Why NOT Rational Choice?

From: Anthony M Miyake
Posted Date: 1995-06-01

I'm not a micro-economist, but here are some comments.

I always thought in economics we tried to explain behavior rather than just relegate the behavior to preferences. One example is the reason why birth rates are lower in high income countries as compared to low income countries. The standard explanation is that the opportunity cost for having children for women in high income countries is higher. Of course there are other factors, too. If we were to just relegate this behavior to preferences we would say that women in low income countries simply prefer having more children.

If observed behavior varies *predictably* from theory, then there should be some rational explanation for this; something was lacking from the theory.

Maybe your comment is directed more towards the use of mathematics in economics. I agree that mathematics should be used to facilitate understanding, rather than obstruct it. However, I always thought that anything you could prove mathematically in economics, you could explain in common sense terms. The reverse is not as reliable.

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Anthony M. Miyake
snail mail: 100 Howe St. #209
Dept. of Economics, Yale University New Haven, CT 06511
e-mail: amiyake[at]minerva.cis.yale.edu
home page: http://minerva.cis.yale.edu/~amiyake/amiyake.html _____________________________________________________________________

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