Some Issues on Firm Behaviour in Light of Microeconomic Foundations of Macroeconomics
The micro-Walrasian cosmos is not able to give us a valid explanation with which to understand a macro-Keynesian world characterised by equilibria with various degrees of unemployment and even with permanent disequilibria due to the downward rigidities of money wages and prices. The missing link is an explanation of short-run disequilibrium dynamics.
Aggregate models of growth are not able to explain the facts of an actual growth process. They usually analyse smooth economies with flexible technologies and point out the equilibrium characteristics of an ideal system working, sooner or later, at constant speed. The missing link is an explanation of long-run disequilibrium dynamics.
KeywordsTechnical Progress Behavioural Paradigm Firm Behaviour Buffer Stock Single Firm
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