Cited by 1,004Monetary Policy and Economic ImpactEconomic theories and modelsEconomic Theory and Policy

Narrative Economics

Shiller, Robert J.·2017·American Economic Review

Abstract

This address considers the epidemiology of narratives relevant to economic fluctuations. The human brain has always been highly tuned toward narratives, whether factual or not, to justify ongoing actions, even such basic actions as spending and investing. Stories motivate and connect activities to deeply felt values and needs. Narratives “go viral” and spread far, even worldwide, with economic impact. The 1920–1921 Depression, the Great Depression of the 1930s, the so-called Great Recession of 2007–2009, and the contentious political-economic situation of today are considered as the results of the popular narratives of their respective times. Though these narratives are deeply human phenomena that are difficult to study in a scientific manner, quantitative analysis may help us gain a better understanding of these epidemics in the future. (JEL D72, E32, G01, N10)

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Crossref · 10.1257/aer.107.4.967

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58 of 58 references verified0 citation errors · 0 not checkable

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  • Social scientists and psychologists have long emphasized the role that stories play in collective action-driving the formation and dynamics of nations, religions, hunter-gatherer communities, organizations, cultural groups, and even financial markets.

    “Social scientists and psychologists have long emphasized the role that stories play in collective action—driving the formation and dynamics of nations (Tilly, 2002), religions (Dunbar, 2022), hunter-gatherer communities (D. Smith et al., 2017; Sugiyama, 2001), organizations (Boje, 2008), cultural groups (Michalopoulos & Xue, 2021), and even financial markets (Shiller, 2017).”

    From Stories in Action. (2022) · cites this paper as Shiller, 2017

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Authors
Shiller, R. J.
Affiliations
Yale University (US)
Corresponding author
Shiller, Robert J.
Venue
American Economic Review
Published
2017-04-01
Volume
107
Issue
4
Pages
967-1004
ISSN
0002-8282 (ISSN-L)
OpenAlex
W4233731957
Cited by
1,004
References
60
Citations by year
2026: 185 · 2025: 148 · 2024: 112 · 2023: 118 · 2022: 110 · 2021: 140 · 2020: 84 · 2019: 51 · 2018: 35 · 2017: 18 · 2016: 1 · 2015: 1
FWCI
120.79
Type
journal article
Language
en
Open access
closed
Locations
  • American Economic Review (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
Keywords
narrative economics, economic narratives, business cycles, Great Depression, Great Recession, behavioral economics, economic psychology, political economy

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