A macro economy as an ecology of plans
AbstractStandard macro theories reflect a choice-theoretic orientation wherein aggregate variables are treated as acting directly on one another. Macro phenomena are thus reduced to the same order of simplicity as micro phenomena; macro variables differ from micro variables only by their larger size. In contrast, this paper treats the relationship between micro and macro as non-scalable. Macro phenomena emerge through micro interaction and are of a higher order of complexity than micro phenomena. Rather than reducing macro to micro through scalar multiplication, macro phenomena supervene on micro interaction and are not themselves objects of direct action. A macro economy is treated as a complex ecology of plans that constitute a non-equilibrium process of spontaneous ordering.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 82 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/jebo
Micro foundations; Complexity; Emergence; Supervention; Ecology of plans; Turbulence; Spontaneous ordering; Scale-free modeling;
Find related papers by JEL classification:
- B4 - Schools of Economic Thought and Methodology - - Economic Methodology
- D2 - Microeconomics - - Production and Organizations
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
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