Abstract
Nowadays almost all of macroeconomic theory is based on microeconomic foundations. It is the widespread opinion that a full understanding and explanation of macroeconomic phenomena like inflation, unemployment, growth, and the business cycle require a model in which economic decision units and their interaction are described explicitly. Only models with a microeconomic foundation are immune to criticism concerning “ad hoc”— assumptions of macroeconomic relationships, and only these models allow an assessment of welfare effects of policy measures.
“Clearly, product markets, as well as labor markets, should be modeled as imperfectly competitive.”
J. Tobin (1993)
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© 1999 Springer-Verlag Berlin Heidelberg
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Kaas, L. (1999). Introduction. In: Dynamic Macroeconomics with Imperfect Competition. Lecture Notes in Economics and Mathematical Systems, vol 475. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58479-4_1
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DOI: https://doi.org/10.1007/978-3-642-58479-4_1
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-66029-3
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