What is new and essential in economics?

By "new," restrict yourselves to 1990 and afterwards.  I see mid-1980s as the end of a great era in economic theorizing.  Take game theory, principal-agent theory, and the economics of information, and apply them to everything, for better or worse.  This was an exciting, indeed intoxicating, time to learn economics.  While applications continue, we have run out of new ideas on those fronts.  Experimental economics is completely Nobel-worthy, but it is now over forty years old.  What are the next breakthroughs or the breakthroughs which have just been made?  Comments are open…


Comments for this post are closed