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A macro economy as an ecology of plans

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  • Wagner, Richard E.

Abstract

Standard 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.

Suggested Citation

  • Wagner, Richard E., 2012. "A macro economy as an ecology of plans," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 433-444.
  • Handle: RePEc:eee:jeborg:v:82:y:2012:i:2:p:433-444
    DOI: 10.1016/j.jebo.2011.07.019
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    Cited by:

    1. repec:eee:quaeco:v:67:y:2018:i:c:p:227-236 is not listed on IDEAS
    2. Félix-Fernando Muñoz & María-Isabel Encinar, 2014. "Intentionality and the emergence of complexity: an analytical approach," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 317-334, April.
    3. Muñoz, Félix & Encinar, María Isabel & Fernández-de-Pinedo, Nadia, 2014. "Intentionality and technological and institutional change: Implications for economic development," Working Papers in Economic Theory 2014/04, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    4. Santiago J. Gangotena, 2017. "Dynamic coordinating non-equilibrium," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 51-82, March.
    5. Richard Wagner, 2013. "What kind of state in our future? Fact and Conjecture in Vito Tanzi’s Government versus Markets," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(1), pages 93-104, March.
    6. Alexander William Salter, 2017. "Playing at markets: A New Austrian perspective on macroeconomic policy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 39-49, March.
    7. Paul Lewis & Richard E. Wagner, 2017. "New Austrian macro theory: A call for inquiry," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 1-18, March.
    8. James Caton, 2017. "Entrepreneurship, search costs, and ecological rationality in an agent-based economy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 107-130, March.
    9. Peter Lewin, 2015. "Richard W. Wagner: Mind, Society and Human Action: Time and Knowledge in a Theory of Social Economy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(3), pages 357-359, September.
    10. Gilles, Robert P. & Lazarova, Emiliya A. & Ruys, Pieter H.M., 2015. "Stability in a network economy: The role of institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 375-399.
    11. Simon Bilo & Richard Wagner, 2015. "Neutral money: Historical fact or analytical artifact?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(2), pages 139-150, June.
    12. Vipin P. Veetil & Lawrence H. White, 2017. "Towards a New Austrian Macroeconomics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 19-38, March.

    More about this item

    Keywords

    Micro foundations; Complexity; Emergence; Supervention; Ecology of plans; Turbulence; Spontaneous ordering; Scale-free modeling;

    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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