tag:blogger.com,1999:blog-6837159629100463303.post1764596294084548858..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Happy birthday, blog!Jason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6837159629100463303.post-80476939972896935342016-04-27T10:52:26.213-07:002016-04-27T10:52:26.213-07:00... I think I mentioned before that Anwar was a st...... I think I mentioned before that Anwar was a student of Gary Becker's (I thought I'd say it again just in case I didn't).Tom Brownhttps://www.blogger.com/profile/17654184190478330946noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-66850383694595470752016-04-26T15:55:07.338-07:002016-04-26T15:55:07.338-07:00Hi Tom,
That's interesting ... actually I...Hi Tom, <br /><br />That's interesting ... actually I'd broadly agree with the points 1-5:<br /><br />1. "It should be rooted in some theory of the relevant factors at the micro level."<br /><br />Given #2 and #4, this seems odd. If only some of the micro factors matter at the aggregate level (and many micro theories lead to the same macro theory), then why care about being rooted? <br /><br />2. "It should allow for the fact that only a few of these factors may be relevant at the macro level."<br /><br />This is what I say all the time on my blog.<br /><br />3. The aggregate functional form may be quite different than the micro functional form (which implies that there is no such thing as a "representative agent").<br /><br />I say this too. Except the parenthetical. There could well be an emergent representative agent. There's at least an emergent <b>something</b> if #2 is true -- and that something is simpler than your micro theory (since factors of the micro theory aren't relevant at the macro level).<br /><br />4. There are "many micro foundations that are consistent with any given aggregate pattern." <br /><br />Again, I say this all the time. E.g. here:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2016/03/the-irony-of-microfoundations.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2016/03/the-irony-of-microfoundations.html</a><br /><br />5. The tendency to return to equilibrium is a hypothesis, and "the existence, speed, and manner of operation must be explicitly addressed."<br /><br />Well, first you need to define what you mean by equilibrium. If it is information equilibrium, then the return to information equilibrium is simply the most likely outcome ...Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-28728995942762533092016-04-26T15:10:55.494-07:002016-04-26T15:10:55.494-07:00Congratulations on the birthday of your blog Jason...Congratulations on the birthday of your blog Jason!<br /><br />O/T: I notice that Brian Romanchuk says that Anwar Shaikh also uses an <a href="http://www.bondeconomics.com/2016/04/anwar-shaikh-on-micro-and-macro.html" rel="nofollow">ideal gas analogy</a> in his book.Tom Brownhttps://www.blogger.com/profile/17654184190478330946noreply@blogger.com