Macroeconomic Relaxation: Adjustment Processes of Hierarchical Economic Structures
Abstract: We show how time-dependent macroeconomic response follows from microeconomic dynamics using linear response theory and a time-correlation formalism. This theory provides a straightforward approach to time-dependent macroeconomic model construction that preserves the heterogeneity and complex dynamics of microeconomic agents. We illustrate this approach by examining the relationship between output and demand as mediated by changes in unemployment, or Okun’s law. We also demonstrate that time dependence implies overshooting and how this formalism leads to a natural definition of economic friction.
- Location
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Deutsche Nationalbibliothek Frankfurt am Main
- Extent
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Online-Ressource
- Language
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Englisch
- Bibliographic citation
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Macroeconomic Relaxation: Adjustment Processes of Hierarchical Economic Structures ; volume:3 ; number:1 ; year:2009 ; extent:22
Economics / Journal articles. Journal articles ; 3, Heft 1 (2009) (gesamt 22)
- Creator
- DOI
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10.5018/economics-ejournal.ja.2009-17
- URN
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urn:nbn:de:101:1-2412121803419.408133903189
- Rights
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Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
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15.08.2025, 7:38 AM CEST
Data provider
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Associated
- Hawkins, Raymond J.
- Aoki, Masanao
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