IDEAS home Printed from https://ideas.repec.org/p/jen/jenavo/1998-03.html
   My bibliography  Save this paper

The Paradoxical Fate of the Representative Firm

Author

Listed:
  • Frank Schohl

Abstract

While modern theorising on the microfoundation of macroeconomics makes intense use of the representative firm notion, severe objections have been raised. Regarded from the history of thought this is the second time that its usefulness is called into question. The paper presents an old literature which has ended with the abandonment of the representative firm from competition theory because it neglects the innovation issue. It shows that its subsequent adoption to macroeconomics suffers from similar flaws. It follows that the representative firm is inappropriate for the analysis of modern competitive economies and should be withdrawn from macroeconomics as well.

Suggested Citation

  • Frank Schohl, 1998. "The Paradoxical Fate of the Representative Firm," Working Paper Series B 1998-03, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultïät.
  • Handle: RePEc:jen:jenavo:1998-03
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Maarten C. W. Janssen, 1991. "What Is This Thing Called Microfoundations?," History of Political Economy, Duke University Press, vol. 23(4), pages 687-712, Winter.
    2. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    3. Long, John B, Jr & Plosser, Charles I, 1983. "Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 39-69, February.
    4. Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
    5. Janssen, Maarten C.W., 1991. "The alleged necessity of microfoundations," Journal of Macroeconomics, Elsevier, vol. 13(4), pages 619-639.
    6. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    microfoundation; representative agent; aggregation; innovation; competition; Marshall; Schumpeter;

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • D00 - Microeconomics - - General - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jen:jenavo:1998-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.wiwi.uni-jena.de/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.