Rational Expectations in a Pandemic

Abstract

Gary Becker, a pioneering economist based at the University of Chicago, was famous for applying principles of economic theory to questions hitherto considered outside of core economics. In doing so he expanded the oeuvre of economics appreciably, while bringing a new level of rigor to many important questions in sociology and human affairs. Followers of Becker choose economic ideas with universal appeal and then apply them to social questions to obtain new insights. In today’s world, the most important social question seems to be the pandemic along with its unending cycles of lockdowns. While economists justifiably worry about the economic fallouts of the situation, could principles from the dismal science provide new insights into how we the frame broader social rules in these embattled times?