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Reflections on modern macroeconomics: Can we travel along a safer road?

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  • Gaffeo, E.
  • Catalano, M.
  • Clementi, F.
  • Delli Gatti, D.
  • Gallegati, M.
  • Russo, A.

Abstract

In this paper we sketch some reflections on the pitfalls and inconsistencies of the research program—currently dominant among the profession—aimed at providing microfoundations to macroeconomics along a Walrasian perspective. We argue that such a methodological approach constitutes an unsatisfactory answer to a well-posed research question, and that alternative promising routes have been long mapped out but only recently explored. In particular, we discuss a recent agent-based, truly non-Walrasian macroeconomic model, and we use it to envisage new challenges for future research.

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Bibliographic Info

Article provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.

Volume (Year): 382 (2007)
Issue (Month): 1 ()
Pages: 89-97

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Handle: RePEc:eee:phsmap:v:382:y:2007:i:1:p:89-97

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Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/

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Keywords: Equilibrium; Agent-based economics; Emergence;

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References

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Citations

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Cited by:
  1. Wright, Ian, 2009. "Implicit Microfoundations for Macroeconomics," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 3(19), pages 1-27.
  2. Neveu, Andre R., 2013. "Fiscal policy and business cycle characteristics in a heterogeneous agent macro model," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 224-240.
  3. Lengnick, Matthias, 2011. "Agent-based macroeconomics - a baseline model," Economics Working Papers 2011,04, Christian-Albrechts-University of Kiel, Department of Economics.
  4. N. J. Moura & M. B. Ribeiro, 2009. "Evidence for the Gompertz curve in the income distribution of Brazil 1978–2005," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 67(1), pages 101-120, January.
  5. Edoardo Gaffeo & Domenico Delli Gatti & Saul Desiderio & Mauro Gallegati, 2008. "Adaptive Microfoundations for Emergent Macroeconomics," Eastern Economic Journal, Palgrave Macmillan, vol. 34(4), pages 441-463.
  6. Pasquale Cirillo & Mauro Gallegati, 2012. "The Empirical Validation of an Agent-based Model," Eastern Economic Journal, Palgrave Macmillan, vol. 38(4), pages 525-547.
  7. Russo, Alberto & Riccetti, Luca & Gallegati, Mauro, 2013. "Increasing Inequality and Financial Fragility in an An Agent Based Macroeconomic Model," MPRA Paper 51528, University Library of Munich, Germany.

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