Economic reasoning has been successfully applied to traditional areas of (social) psychology. While progress can certainly be made by further applying the economic approach to these areas outside the economy, diminishing returns have set in.
It is now time to change from imperialistic to inspired economics. Psychology contains many ideas which can enrich future economics without giving up its sound foundations. The areas of behavioural anomalies, human motivation and subjective well-being are pertinent examples.
economics and psychology, interdisciplinarity, social science paradigm
Classification JEL: A10, A12