@ARTICLE{19099681_2007,
author = {Aoki, Masanao and Yoshikawa, Hiroshi},
keywords = {applied dynamic general equilibrium model, dynamic general equilibrium, economic agent, GDP, macroeconomics, Microfoundations, Non-self averaging phenomena, Power laws, simple stochastic growth model},
title = {Non-Self-Averaging in Macroeconomic Models: A Criticism of Modern
Micro-founded Macroeconomics },
journal = {Economics Discussion Papers},
year = {2007},
month = {},
volume = {},
number = {2007-49},
pages = {},
url = {http://ecsocman.hse.ru/text/19099681/},
publisher = {},
language = {ru},
abstract = {Using a simple stochastic growth model, this paper demonstrates that
the coefficient of variation of aggregate output or GDP does not
necessarily go to zero even if the number of sectors or economic
agents goes to infinity. This phenomenon known as non-self-averaging
implies that even if the number of economic agents is large,
dispersion can remain significant, and, therefore, that we can not
legitimately focus on the means of aggregate variables. It, in turn,
means that the standard microeconomic foundations based on the
representative agent has little value for they are expected to
provide us with accurate dynamics of the means of aggregate
variables. The paper also shows that non-self-averaging emerges in
some representative urn models. It suggests that non-self-averaging
is not pathological but quite generic. Thus, contrary to the main
stream view, micro-founded macroeconomics such as a dynamic general
equilibrium model does not provide solid micro foundations. },
annote = {Using a simple stochastic growth model, this paper demonstrates that
the coefficient of variation of aggregate output or GDP does not
necessarily go to zero even if the number of sectors or economic
agents goes to infinity. This phenomenon known as non-self-averaging
implies that even if the number of economic agents is large,
dispersion can remain significant, and, therefore, that we can not
legitimately focus on the means of aggregate variables. It, in turn,
means that the standard microeconomic foundations based on the
representative agent has little value for they are expected to
provide us with accurate dynamics of the means of aggregate
variables. The paper also shows that non-self-averaging emerges in
some representative urn models. It suggests that non-self-averaging
is not pathological but quite generic. Thus, contrary to the main
stream view, micro-founded macroeconomics such as a dynamic general
equilibrium model does not provide solid micro foundations. }
}