Isolation and Aggregation in Economics

Ekkehart Schlicht

ISBN 10: 3642703003 / ISBN 13: 9783642703003

Editore: Springer Berlin Heidelberg, Springer Berlin Heidelberg Nov 2011, 2011

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Neuware -In order to solve a given problem, economic analysis is com pelled to concentrate on the interaction of selected factors while disregarding a multitude of other influences. This book offers a discussion of certain central premises involved here and draws some analytical consequences. The argument is fo cused on process analysis, i.e., on the analysis of economic processes within a given institutional setting, although certain corollaries for institutional analysis are patent. Many colleagues and students have helped me, for many years, to develop the views presented here, and it seems im possible to trace individual influences. Thus I can only ex press my indebtedness in a macro sense. I wish to thank the Westdeutscher Verlag for its kind per mission to use material from my Grundlagen der okonomi schen Analyse. The results of Chap. 4 were presented at the Econometric Society European Meeting in Pisa, 1983. Dr. W. A. MUller from Springer-Verlag has encouraged me to write this book and has been helpful in many ways.Springer Verlag GmbH, Tiergartenstr. 17, 69121 Heidelberg 132 pp. Englisch.

Codice articolo 9783642703003

Dati bibliografici

• Titolo: Isolation and Aggregation in Economics
• Editore: Springer Berlin Heidelberg, Springer Berlin Heidelberg Nov 2011
• Data di pubblicazione: 2011
• Lingua: Inglese
• ISBN 10: 3642703003
• ISBN 13: 9783642703003
• Rilegatura: Taschenbuch
• Condizione: Neu

Descrizione articolo

Riassunto

In order to solve a given problem, economic analysis is com­ pelled to concentrate on the interaction of selected factors while disregarding a multitude of other influences. This book offers a discussion of certain central premises involved here and draws some analytical consequences. The argument is fo­ cused on process analysis, i.e., on the analysis of economic processes within a given institutional setting, although certain corollaries for institutional analysis are patent. Many colleagues and students have helped me, for many years, to develop the views presented here, and it seems im­ possible to trace individual influences. Thus I can only ex­ press my indebtedness in a macro sense. I wish to thank the Westdeutscher Verlag for its kind per­ mission to use material from my Grundlagen der okonomi­ schen Analyse. The results of Chap. 4 were presented at the Econometric Society European Meeting in Pisa, 1983. Dr. W. A. MUller from Springer-Verlag has encouraged me to write this book and has been helpful in many ways.

Contenuti

1. The Setting of the Argument.- 1.1 Two Characteristics of Economic Analysis.- 1.2 The Provisional Nature of Economic Data.- 1.2.1 Data and Variables.- 1.2.2 Provisional Data.- 1.2.3 The Ceteris Paribus Clause.- 1.2.4 A Difficulty in Applications.- 1.2.5 Economics as a Deductive Science.- 1.2.6 The Homo Oeconomicus.- 1.2.7 The Isolation Principle.- 1.2.8 The Moving Equilibrium Method.- 1.2.9 The Nature of Economic Theories.- 1.2.10 Consequences for Econometrics.- 1.3 Intricacies in Macroeconomic Analysis.- 1.3.1 Economic Aggregates and Macroeconomic Problems.- 1.3.2 The Microeconomic Approach to Macroeconomic Problems.- 1.3.3 The Macroeconomic Approach to Macroeconomic Problems.- 1.3.4 The Hermeneutic Aggregation Problem.- 1.3.5 The Typical Agent.- 1.3.6 The Representative Agent.- 1.3.7 Micro and Macro Behaviour Might Differ.- 1.3.8 Macroeconomics and Aggregation.- 1.4 Isolation and Aggregation.- 2. On Isolation.- 2.1 The Heuristic View.- 2.2 The Isolating Approach.- 2.2.1 The Marshallian Method.- 2.2.2 Substantive and Hypothetical Isolation.- 2.3 Substantive Isolation.- 2.3.1 The Isolation Principle.- 2.3.2 Temporal Isolation.- 2.3.3 Causal Isolation.- 2.4 Hypothetical Isolation.- 2.4.1 Analytical Isolation.- 2.4.2 Hypothetical Theories.- 2.4.3 A Remark on Scientific Discourse.- 2.5 Economic Thinking.- 3. The Moving Equilibrium Method.- 3.1 Economic Equilibrium.- 3.2 Moving Equilibria.- 3.2.1 Partial Analysis.- 3.2.2 Comparative Statics.- 3.2.3 The Moving Equilibrium Method.- 3.3 Extensions.- 3.3.1 The Marshallian Market.- 3.3.2 A Qualification.- 3.3.3 A Ramification.- 3.3.4 Discontinuities.- 3.4 Mathematical Aspects.- 3.4.1 Approximation by Moving Equilibrium.- 3.4.2 Additional Observations.- 3.5 Hicks-d’Alembert’s Principle.- 4. Econometric Implications.- 4.1 Linking Theory and Empirical Evidence.- 4.2 Invariances in Coefficients Versus Invariances in Their Stability.- 4.2.1 The Classical Invariance Premise.- 4.2.2 Economic Models as “Models of Thought”.- 4.2.3 Short-Run Invariances.- 4.2.4 Invariances in Stabilities.- 4.3 Estimation in a Linear Model with Random Walk Coefficients.- 4.3.1 The Model.- 4.3.2 Notation.- 4.3.3 A Parametrization.- 4.3.4 Estimating the Coefficients.- 4.3.5 Estimation of Variances.- 4.3.6 An Approximation.- 4.4 Unsettled Problems.- 5. The Nature of Macroeconomic Laws.- 5.1 On Reductionism.- 5.2 The Macroeconomic Method.- 5.2.1 Macroeconomics as an Isolating Approach.- 5.2.2 The Aggregation Principle.- 5.2.3 Aggregation and Moving Equilibrium.- 5.2.4 The Macroeconomic Isolation Principle.- 5.3 Closed Aggregation and the Context Dependency of Economic Laws.- 5.3.1 Closed Versus Open Aggregation: A Comparison in Statics.- 5.3.2 The Context Dependency of Economic Relations.- 5.4 Qualitative Differences Between Microeconomic and Macroeconomic Laws.- 5.4.1 Three Differences.- 5.4.2 The Smoothing Effect.- 5.4.3 The Elimination Effect.- 5.4.4 The System Effect.- 5.5 Hermeneutic Aggregation.- 5.5.1 The Status of the Aggregation Problem.- 5.5.2 Revised Reductionism.- 5.5.3 Macroeconomic Order and Microeconomic Chaos.- 5.5.4 Structural Causality.- 5.6 Adequate Aggregation.- 6. Epilogue: Economic Imagination.- References.- Author Index.