Pluralism, the Lucas Critique, and the Integration of Macroeconomics and Microeconomics
Bibliographic Data
| ID | 12229286 |
|---|---|
| Authors | Peter Skott (0000-0003-3368-2311, University of Massachusetts Amherst, corresponding author) |
| Year | 2014 |
| Volume | 26 |
| Issue | 4 |
| Pages | 503-515 |
| Publication date | 2014-10-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0953-8259 • E-ISSN: 1465-3982 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/09538259.2014.950463 |
| OpenAlex | W1967330939 |
| Language | EN |
| Citations received | 1 |
| References cited | 17 |
Mainstream macroeconomics has pursued ‘micro founded’ models based on the explicit optimization by representative agents. The result has been a long and wasteful detour. But elements of the Lucas critique are relevant, also for heterodox economists. Challenging common heterodox views on microeconomics and formalization, this paper argues that (i) economic models should not be based purely on empirically observed regularities, (ii) heterodox economists must be able to tell an integrated story about goal-oriented micro behavior in a specific macro environment, and (iii) relatively simple analytical models have an essential role to play
Applied economics · Economics · Keynesian economics · Lucas critique · Macro · Macroeconomics · Mainstream · Mainstream economics · Neoclassical economics · New classical macroeconomics · Pluralism (philosophy · Post-Keynesian economics · Rational expectations · Simple (philosophy · Complex Systems and Time Series Analysis · Computer Science · Economic theories and models · Economic Theory and Policy
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Whom or What Does the Representative Individual Represent
| Citations per year | 0.17 |
|---|---|
| Citation span | 2020 - 2020 (1) |
| Highly cited | No |