Reconstructing Macroeconomics by Masanao Aoki, Hiroshi Yoshikawa - 9780521831062

Reconstructing MacroeconomicsA Perspective from Statistical Physics and Combinatorial Stochastic Processes\nAuthor(s): Masanao Aoki, Hiroshi Yoshikawa\nFormat: Hardback\nPublisher: Cambridge University Press, United Kingdom\nImprint: Cambridge University Press\nISBN-13: 9780521831062, 978-0521831062\nSynopsis\nIn this 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.