IDEAS home Printed from https://ideas.repec.org/p/lmu/muenec/38821.html
   My bibliography  Save this paper

Isolation and Aggregation in Economics

Author

Listed:
  • Schlicht, Ekkehart

Abstract

In explaining economic phenomena, economic analysis concentrates on selected influences and fixes the host of other factors under a ceteris paribus clause. This view, which goes back to Alfred Marshall (1842-1924), is developed in the first part of the book. Aggregation is viewed as a particular application of ceteris paribus analysis - isolation from "structural effects". This leads to an approach, called "closed aggregation", which was introduced by Kenneth May and is also implicit in Keynes' writings but has been neglected more recently. It is argued that macroeconomic models are more stable and more general than the corresponding micro models and that there is no simple analogy between them.

Suggested Citation

  • Schlicht, Ekkehart, 1985. "Isolation and Aggregation in Economics," Discussion Papers in Economics 38821, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:38821
    as

    Download full text from publisher

    File URL: https://epub.ub.uni-muenchen.de/38821/1/schlicht_ekkehart_isolation_and_aggregation_corr._ed.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vasilev, Aleksandar & Maksumov, Rashid, 2010. "Critical analysis of Chapter 23 of Keynes’s Notes on Mercantilism in The General Theory of Employment, Interest and Money (1936)," EconStor Research Reports 155318, ZBW - Leibniz Information Centre for Economics.
    2. Schlicht, Ekkehart & Ludsteck, Johannes, 2006. "Variance Estimation in a Random Coefficients Model," Discussion Papers in Economics 904, University of Munich, Department of Economics.
    3. Schlicht, Ekkehart, . "Grundlagen der ökonomischen Analyse," Monographs in Economics, University of Munich, Department of Economics, number 25821, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lloyd Ulman, 1992. "Why Should Human Resource Managers Pay High Wages?," British Journal of Industrial Relations, London School of Economics, vol. 30(2), pages 177-212, June.
    2. Sangyup Choi & Davide Furceri & João Tovar Jalles, 2022. "Heterogeneous gains from countercyclical fiscal policy: new evidence from international industry-level data [Optimal investment with costly reversibility]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 773-804.
    3. Hany Shawky & Ronald Forbes & Alan Frankle, 1983. "Liquidity Services and Capital Market Equilibrium: The Case for Money Market Mutual Funds," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 6(2), pages 141-152, June.
    4. Hideaki Aoyama & Hiroshi Yoshikawa & Hiroshi Iyetomi & Yoshi Fujiwara, 2008. "Labour Productivity Superstatistics," Papers 0809.3541, arXiv.org.
    5. Ulrich van Suntum, "undated". "The Purchasing Power Argument – Could Rising Wages Foster Employment?," Working Papers 200126, Institute of Spatial and Housing Economics, Munster Universitary.
    6. P. Arestis & C. Driver, 1984. "The Policy Implications of Post Keynesianism," Journal of Economic Issues, Taylor & Francis Journals, vol. 18(4), pages 1093-1105, December.
    7. Paul Davidson, 1985. "Liquidity and Not Increasing Returns is the Ultimate Source of Unemployment Equilibrium," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 7(3), pages 373-384, March.
    8. Michael Bordo & Andrew Filardo, 2005. "Deflation and monetary policy in a historical perspective: remembering the past or being condemned to repeat it?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 799-844, October.
    9. Masaaki Shirakawa, 2010. "Revisiting the Philosophy behind Central Bank Policy," International Finance, Wiley Blackwell, vol. 13(3), pages 485-493, December.
    10. James Forder, 2010. "The historical place of the 'Friedman—Phelps' expectations critique," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(3), pages 493-511.
    11. Palash Deb & Parthiban David & Jonathan O'Brien, 2017. "When is cash good or bad for firm performance?," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 436-454, February.
    12. Shackelford, Douglas A. & Shaviro, Daniel N. & Slemrod, Joel, 2010. "Taxation and the Financial Sector," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(4), pages 781-806, December.
    13. Shyam Gouri Suresh & Mark Setterfield, 2015. "Firm performance, macroeconomic conditions, and “animal spirits” in a Post Keynesian model of aggregate fluctuations," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 38(1), pages 38-63, July.
    14. Nicola Meccheri, 2007. "Wage behaviour and unemployment in Keynes' and New Keynesians' views: A comparison," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(4), pages 701-724.
    15. John F. Brothwell, 1986. "after Fifty Years: Why Are We Not All Keynesians Now?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(4), pages 531-547, July.
    16. Klausinger, Hansjörg, 2000. "Walras' law and the IS-LM model. A tale of progress and regress," Department of Economics Working Paper Series 69, WU Vienna University of Economics and Business.
    17. Schlicht, Ekkehart, 2004. "Estimating the Smoothing Parameter in the So-Called Hodrick-Prescott Filter," IZA Discussion Papers 1054, Institute of Labor Economics (IZA).
    18. Dosi, Giovanni & Fagiolo, Giorgio & Napoletano, Mauro & Roventini, Andrea & Treibich, Tania, 2015. "Fiscal and monetary policies in complex evolving economies," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 166-189.
    19. Thierry Warin & Andrew Blakely, 2012. "Choice or Mimetism in the Decision to Migrate? A European Illustration," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 12(2), pages 1-32, April.
    20. John P. Watkins, 2000. "Corporate Power and the Evolution of Consumer Credit," Journal of Economic Issues, Taylor & Francis Journals, vol. 34(4), pages 909-932, December.

    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:lmu:muenec:38821. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.