New Approaches to Macroeconomic Modeling by Masanao Aoki - 9780521637695

New Approaches to Macroeconomic ModelingEvolutionary Stochastic Dynamics, Multiple Equilibria, and Externalities as Field Effects\nAuthor(s): Masanao Aoki\nFormat: Paperback\nPublisher: Cambridge University Press, United Kingdom\nImprint: Cambridge University Press\nISBN-13: 9780521637695, 978-0521637695\nSynopsis\nThis book contributes substantively to state-of-the-art macroeconomic modeling by providing a method for modeling large collections of heterogeneous agents subject to non-pairwise externality called field effects, [url] feedback of aggregate effects on individual agents or agents using state-dependent strategies. Adopting a level of microeconomic description which keeps track of compositions of fractions of agents by 'types' or 'strategies', time evolution of the microeconomic states is described by (backward) Chapman-Kolmogorov equations. Macroeconomic dynamics naturally arise by expansion of the solution in some power series of the number of participants. Specification o.