Conclusion – don’t believe a single thing of what these microfounders tell you until they have told you how they havecoped with – not evaded – Sonnenschein-Mantel-Debreu!Read it at Lars P. Syll's Blog
Please say after me – Sonnenschein-Mantel-Debreu
by Lars P. Syll
Cutting to the heart of neo-classical economics — DSGE modeling assuming a representative agent. The model is not representational of reality.
Of course, this is not a new criticism. But it is expressed in a simple to understand way for non-economists.
And so far, it has not been adequately addressed by NCE proponents, who claim to be getting useful information from their methodological approach
And so far, it has not been adequately addressed by NCE proponents, who claim to be getting useful information from their methodological approach
Even though history shows they got it wrong, wrong, wrong. There is no way to rewrite that without appeal to revisionism.
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