Keynes’ Economic Thought and the Theory of Consumer Behavior
Author(s)
Drakopoulos, S. A.
Abstract
Although John Maynard Keynes developed a macroeconomic analysis in which aggregate consumption played a central role, he said little about the microeconomic theory of consumer behavior underlying his work. Subsequently, economists have often taken for granted that Keynesian macroeconomics can and should be integrated with the standard utility-maximizing model of individual consumption. This article, however, argues that there are signs that Keynes rejected the standard theory of consumer behavior, and that an alternative model of consumer choice can help explain important aspects of Keynesian macroeconomics.
