The Missing Motivation in Macroeconomics

*This paper is based on a long-term research program with Rachel Kranton on the implications of identity for economic behavior and also a manuscript we are currently writing on the missing motivation in economics. Our previous joint papers (Akerlof and Kranton (2000), (2002) and (2005)) have explored implications outside of macroeconomics of utility functions dependent on peoples notions of what ought to be. Conversations with Kranton have also been the basis for the section on economic methodology. I have also benefitted from conversations with Robert Shiller, with whom I am co-authoring work on behavioral macroeconomics. In addition, I