
Modeling Aggregate Behavior and Fluctuations in Economics
Masanao Aoki
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by Masanao Aoki, Hiroshi Yoshikawa
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The authors treat macroeconomic models as composed of large numbers of micro-units or agents of several types and explicitly discuss stochastic dynamic and combinatorial aspects of interactions among them. In mainstream macroeconomics sound microfoundations for macroeconomics have meant incorporating sophisticated intertemporal optimization by representative agents into models.
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