9.29 Aggregation - Lecture 11 - Aggregation (Part 1)...

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Aggregation (Part 1) Aggregation Why we care Properties of Aggregate Demand Aggregation (Part 1) September 29, 2011
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Aggregation (Part 1) Aggregation Why we care Properties of Aggregate Demand What is it? I consumers with preferences i Choice set X ± R L + Price vector p 2 R L + Can we generate a "representative consumer" as a concise description of markets for . .. Predicting market outcomes (Positive Representative Agent) Evaluating Welfare (Normative Representative Agent)
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Aggregation (Part 1) Aggregation Why we care Properties of Aggregate Demand Why do we care about representative models? Macroeconomics and Labor Models: "represented"?] Single representative agent When can the heterogeneity in the economy be replaced by single homogenous agent? Macro models with heterogeneity are (almost) impossible to solve Critical aspect of tractability
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Aggregation (Part 1) Aggregation Why we care Properties of Aggregate Demand Overview Positive representative agents are hard to rigorously support Normative representative agents are even harder "approximation" to see how wrong we are Some tests indicate we might not be too o/
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Aggregation (Part 1) Aggregation Why we care Properties of Aggregate
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This note was uploaded on 01/07/2012 for the course ECON 6090 at Cornell University (Engineering School).

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9.29 Aggregation - Lecture 11 - Aggregation (Part 1)...

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