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After Hours

Review: Nobel winners tackle incentive myths

In Good Economics for Hard Times, Esther Duflo and Abhijit Banerjee show that people do not behave as models would have us believe

A homeless man asks for money on Wall Street in New York City
A homeless man asks for money on Wall Street in New York City Photo: Getty Images

BookGood Economics for Hard Times

Markets are “sticky”, just as reality is. Economic theory is useful, but people and businesses do not always react as mathematical models predict them to.

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