New Microfoundations for Economics Revolutionize Forecasting and Risk Assessment!
The article discusses how Shiozawa, Morioka, and Taniuchi's microfoundations for evolutionary economics can be used in post-Keynesian economics if they move away from Joan Robinson's views. It connects Herbert Simon's ideas with Keynes's work on probability and rational belief. The researchers show that bounded rationality is key in economic evolution and that short-term forecasts can be made using simple models. Keynes's concepts of uncertainty and evidential weight play a role in understanding future outcomes. Morioka's dynamic model and Taniguchi's analysis of operations management are highlighted as valuable contributions to economic theory.