Arbeitspapier
Top-down versus bottom-up macroeconomics
I distinguish two types of macroeconomic models. The first type are top-down models in which some or all agents are capable of understanding the whole picture and use this superior information to determine their optimal plans. The second type are bottom-up models in which all agents experience cognitive limitations. As a result, these agents are only capable of understanding and using small bits of information. These are models in which agents use simple rules of behavior. These models are not devoid of rationality. Agents in these models behave rationally in that they are willing to learn from their mistakes. These two types of models produce a radically different macroeconomic dynamics. I analyze these differences.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 3020
- Classification
-
Wirtschaft
General Aggregative Models: General
Business Fluctuations; Cycles
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Subject
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DSGE-model
imperfect information
heuristics
animal spirits
Makroökonomik
Dynamisches Gleichgewicht
Sunspot
Unvollkommene Information
Mikroökonomische Fundierung
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
De Grauwe, Paul
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- De Grauwe, Paul
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2010
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