[23] Caring economics,[24][25] created by Snower in conjunction with Tania Singer and their respective research teams, laid the analytical and empirical foundations for a new theory of microeconomic decision making, based on underlying psychological motives.

[32][33] This work explores the formation of competitive versus cooperative identities and the channels whereby narratives affect economic decisions.

[38] Snower laid the theoretical and empirical groundwork for a reappraisal of the Phillips curve[39][40][41][42][43] – the tradeoff between inflation and unemployment – in conjunction with Liam Graham, Marika Karanassou, Hector Sala, Mewael Tessfaselassie and Andrea Vaona.

This theory calls into question the conventional claim that real economic activity is independent of monetary phenomena in the long run.

[48][49] With Assar Lindbeck, Snower showed how the sluggish adjustment of prices and wages in response to macroeconomic shocks depends on lags in the production process.

In conjunction with Wolfgang Lechthaler and Christian Merkel, Snower made seminal contributions to the macroeconomics under labor turnover costs.

Dennis Snower is the author of the benefit transfer program and other active labor market policies,[62][63][64][65][66][67] whereby the unemployed receive jobs and training incentives in accordance with their needs.

[78] Recoupling policies are designed not only to reduce income inequalities, but also promote empowerment and social solidarity of people displaced by the forces of globalization and automation.

Together with Katharina Lima de Miranda, Snower created the SAGE dashboard for economic performance, where S stands for "solidarity", A for "agency, "G" for "material goods", and E for "environmental sustainability."

It provides a framework for capturing economic, social and environmental aspects of wellbeing, all of which are required for achieving meaningful, satisfying lives.