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A New Stochastic Framework for Macroeconomics: Some Illustrative Examples

Part of the New Economic Windows book series (NEW)

Abstract

We need a new stochastic approach to study macroeconomy composed of a large number of stochastically interacting heterogeneous agents. We reject the standard approach to microfoundation of macroeconomics as misguided, mainly because the framework of intertemporal optimization formulation for representative agents is entirely inadequate to serve as microfoundations of macroeconomics of stochastically interacting microeconomic units.

Keywords

Gross Domestic Product Business Cycle Productive Sector Excess Demand Demand Pattern 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Italia 2007

Authors and Affiliations

  • M. Aoki
    • 1
  1. 1.Department of EconomicsUniversity of CaliforniaUSA

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