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!
Of course, most neoclassical macroeconomists know that to use a representative agent is a flagrantly illegitimate method of ignoring real aggregation issues. They keep on with their business, nevertheless, just because it significantly simplifies what they are doing. It reminds – not so little – of the drunkard who has lost his keys in some dark place and deliberately chooses to look for them under a neighbouring street light just because it is easier to see there!Neoclassical economics – emperor without clothes
Lars P. Syll | Professor of Social Studies and Associate Professor of Economics, Malmo University
3 comments:
No link.
Thanks, fixed.
We've all heard this message, repeatedly many times, since John Law himself.
Where's the action?
"It's better to create than to learn. Creating is the essence of life."
Julius Caesar
http://www.brainyquote.com/quotes/quotes/j/juliuscaes156552.html
may be mis-attributed, but it's still a valid point, regardless of who made it;
it's good to have options,
but selection matters even more than data and options
Post a Comment