Does Macroeconomics Need Microeconomic Foundations?

Does Macroeconomics Need Microeconomic Foundations?

I argue that it is microeconomics that needs foundations, not macroeconomics. Preferences need to be built on biology, and, in particular, on neuroscience. In contrast, macroeconomics could benefit from rationalizations of aggregate economic phenomena by non-equilibrium statistical physics. Special issue Reconstructing Macroeconomics JEL: B22, B41, C82, D87

Macroeconomic Evidence and Microeconomic Foundations

What Foundations does the RM-ODP Need?

This position paper revisits the requirements for the set of Foundation Concepts for the ODP Reference Model and the approach originally taken to satisfying them. It then examines, in the light of experience, the areas where the Foundations have subsided, and areas where extensions need to be built. The aim is to provide a starting point for discussion on requirements to change the Foundations ...

Foundations of International Macroeconomics 1

where mreal,t = dmt/m denotes the percentage deviation of real money balances from their steady-state level, ∆pt ≡ [(Pt/Pt−1) /(1+μ)]−1 denotes the percentage deviation of inßation from its (gross) steady-state level of 1 + μ, and the other variables are as deÞned in the text. The foreign counterpart to (370) is mreal,t = c ∗ t− δ (1 + μ) (1 + δ) − (1 + δ)rt+1− 1 (1 + μ) (1 + δ)− 1 ∗ t+1. (38 0)

Microeconomic Foundations of the Demographic Dividend

The potential economic returns to the demographic transition are high. As countries move from a steady state with high mortality and high fertility to an equilibrium with low mortality and fewer children, lower dependency ratios, higher investment in human and physical capital as well as increased female labor force participation contribute to economic growth. In this paper, we analyze the demo...