Microeconomic Foundations for Macroeconomic Structure
AbstractThe models used in economic theory, though necessarily abstract, should be consistent with the nature of decision making behavior. A formal metaphor of individual behavior as a continuous flow indicates certain requirements that theories of consumer, producer, and economywide behavior should exhibit. A family of discrete time, recursive optimizing models is suggested as the appropriate building block for further developing dynamic economic theory.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2005-14.
Length: 28 pages
Date of creation: Nov 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-HPE-2005-12-01 (History & Philosophy of Economics)
- NEP-MAC-2005-12-01 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Richard J. Herrnstein & Drazen Prelec, 1991. "Melioration: A Theory of Distributed Choice," Journal of Economic Perspectives, American Economic Association, vol. 5(3), pages 137-156, Summer.
- Day, Richard H & Kennedy, Peter E, 1970. "Recursive Decision Systems: An Existence Analysis," Econometrica, Econometric Society, vol. 38(5), pages 666-81, September.
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