| Reconstructing Macroeconomics: A Perspective from Statistical Physics and Combinatorial Stochastic Processes Contributor(s): Aoki, Masanao (Author), Yoshikawa, Hiroshi (Author) |
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ISBN: 1107634202 ISBN-13: 9781107634206 Publisher: Cambridge University Press OUR PRICE: $51.29 Product Type: Paperback - Other Formats Published: August 2011 |
| Additional Information |
| BISAC Categories: - Business & Economics | Economics - Macroeconomics |
| Dewey: 339 |
| Series: Japan-Us Center Ufj Bank Monographs on International Financi |
| Physical Information: 0.74" H x 6.14" W x 9.21" (1.09 lbs) 354 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: The authors treat macroeconomic models as composed of large numbers of micro-units or agents of several types and explicitly discuss stochastic dynamic and combinatorial aspects of interactions among them. In mainstream macroeconomics sound microfoundations for macroeconomics have meant incorporating sophisticated intertemporal optimization by representative agents into models. Optimal growth theory, once meant to be normative, is now taught as a descriptive theory in mainstream macroeconomic courses. In neoclassical equilibria flexible prices led the economy to the state of full employment and marginal productivities are all equated. Professors Aoki and Yoshikawa contrariwise show that such equilibria are not possible in economies with a large number of agents of heterogeneous types. They employ a set of statistical dynamical tools via continuous-time Markov chains and statistical distributions of fractions of agents by types available in the new literature of combinatorial stochastic processes, to reconstruct macroeconomic models. |
Contributor Bio(s): Aoki, Masanao: - Masanao Aoki is Professor Emeritus in the Department of Economics at the University of California, Los Angeles.Yoshikawa, Hiroshi: - Hiroshi Yoshikawa is Professor of Economics at the University of Tokyo. |