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

Format:

Book

Author/Creator:

Aoki, Masanao, author.

Yoshikawa, Hiroshi, 1951- author.

Series:

Japan-U.S. Center UFJ Bank monographs on international financial markets.

Japan-U.S. Center UFJ Bank monographs on international financial markets

Language:

English

Subjects (All):

Macroeconomics--Mathematical models.

Macroeconomics.

Physical Description:

1 online resource (xviii, 333 pages) : digital, PDF file(s).

Place of Publication:

Cambridge : Cambridge University Press, 2007.

Language Note:

English

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.

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.

Notes:

Title from publisher's bibliographic system (viewed on 05 Oct 2015).

Includes bibliographical references (p. 309-320) and indexes.

ISBN:

1-107-16055-3

1-107-71372-2

1-281-04027-4

9786611040277

1-139-13059-5

0-511-33462-1

0-511-33396-X

0-511-33328-5

0-511-51067-5

0-511-33520-2

OCLC:

761647190