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Title: Disequilibrium macro-economics in a closed economy : some extensions
Author: Ellis, Christopher James
ISNI:       0000 0001 3445 6143
Awarding Body: University of Warwick
Current Institution: University of Warwick
Date of Award: 1982
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Many contributions to economic theory may be broadly classified as microeconomic or macroeconomic, by which it is meant that they are concerned with questions about the behaviour of rational individual agents in the case of microeconomics or large aggregates in the case of macroeconomics. It would seem reasonable to expect that the results obtained by studying the aggregates should in some sense be compatible with adding up of the behaviour of the individuals which comprise those aggregates. That micro theory and macro theory should at least not be contradictory. On a simple level this may not appear to be the case. Consider the General Equilibrium model originating from the work of Arrow-Debreu and the standard 'elasticity pessimism' IS/LM representation of Keynesian economics to be the paradigms of micro and macro respectively. It may appear that these two models are in conflict, the general equilibrium model assumes that prices clear markets, such phenomena as unemployment can only arise by the individual choice of the agents concerned, all unemployment is voluntary. One of the crucial features of Keynesian macroeconomic models is the presence of involuntary unemployment. To present these models in this light is to deliberately misinterpret the questions which they are addressing. The basic question to which general equilibrium addresses itself is in the words of Weintraub (1979, p. 75): "how (might) it (be) possible for a decentralised individualistic system, operating on principles of self-interest, to produce coherent or co-ordinated outcomes (of the economic system)?
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: HB Economic Theory