Abstract
The concept of equilibrium is central to many macroeconomic models. However, after the 2008 crisis, many of the most used macroeconomic models have been subject to criticism, after their failure in predicting and explaining the crisis. Over the last years, a response to this situation has been the proposal of new approaches to the study of macroeconomical systems, in particular, with the introduction of thermodynamics and statistical physics methods. In this paper, we offer a brief review of the application of the maximum entropy framework in macroeconomics, centered around the different interpretations of the equlibrium concept.
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Acknowledgements
The authors would like to acknowledge professor Gilberto Tadeu, at FEA-USP, for thoughtful comments on an earlier version of this work.
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Hubert, P., Stern, J.M. (2018). Probabilistic Equilibrium: A Review on the Application of MAXENT to Macroeconomic Models. In: Polpo, A., Stern, J., Louzada, F., Izbicki, R., Takada, H. (eds) Bayesian Inference and Maximum Entropy Methods in Science and Engineering. maxent 2017. Springer Proceedings in Mathematics & Statistics, vol 239. Springer, Cham. https://doi.org/10.1007/978-3-319-91143-4_18
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