1 Behavioural macroeconomics and the aggregate supply puzzle by Steinar Holden Department of Economics University of Oslo Box 1095 Blindern, 0317 Oslo, Norway email: steinar.holden@econ.uio.no homepage: http://folk.uio.no/sholden/ May 2004 Abstract The paper provides a short and simplified overview of important deviations from the economic man assumption that have been documented in research by cognitive psychologists and experimental economists. After the overview, I proceed to look at one specific topic within macroeconomics – the short run aggregate supply schedule – and discuss whether theories based on behavioural assumptions might perhaps resolve weaknesses in the more traditional approach. Keywords: behavioural macroeconomics, bounded rationality, aggregate supply JEL-code: E31, E52, D6. I am grateful for helpful comments to a previous version by Dagfinn Rime and an anonymous referee.