Abstract Rich behavioural biases, mistakes, and limits on rational decision-making are often thought to make equilibrium analysis much more intractable. We establish that this is not the case in context of one-sector growth models such as Ramsey–Cass–Koopmans or Bewley–Aiyagari models. break down response economy a change environment policy into two parts: direct at given (pre-tax) prices, whic...