Bibliograph

Reconstructing macroeconomics, a perspective from statistical physics and combinatorial stochastic processes, Masanao Aoki, Hiroshi Yoshikawa

Type

Label

Reconstructing macroeconomics, a perspective from statistical physics and combinatorial stochastic processes, Masanao Aoki, Hiroshi Yoshikawa

Language

eng

Index

index present

Literary Form

non fiction

Main title

Reconstructing macroeconomics

Medium

electronic resource

Nature of contents

dictionaries

Oclc number

173845311

Responsibility statement

Masanao Aoki, Hiroshi Yoshikawa

Series statement

Japan-U.S. Center UFJ Bank monographs on international financial marketsCambridge Social Sciences eBooks

Sub title

a perspective from statistical physics and combinatorial stochastic processes

Summary

In this 2007 book, 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.--, Provided by publisher

Table Of Contents

Introduction: a new approach to macroeconomics -- The methods: jump Markov process and random partitions -- Equilibrium as distribution: the role of demand in macroeconomics -- Uncertainty trap: policy ineffectiveness and long stagnation of the macroeconomy -- Slow dynamics of macro system: no mystery of inflexible prices -- Business cycles: an endogenous stochastic approach -- Labor market: a new look at the natural unemployment and Okun's law -- Demand saturation-creation and economic growth -- The types of investors and volatility in financial markets: analyzing clusters of heterogeneous agents -- Stock proces and the real economy: power-law versus exponential distributions

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