Journal Article

No. 2009-23 | June 08, 2009
Does Macroeconomics Need Microeconomic Foundations? PDF Icon
(Published in Special Issue Reconstructing Macroeconomics)

Abstract

I argue that it is microeconomics that needs foundations, not macroeconomics. Preferences need to be built on biology, and, in particular, on neuroscience. In contrast, macroeconomics could benefit from rationalizations of aggregate economic phenomena by non-equilibrium statistical physics.

JEL Classification

B22 B41 C82 D87

Citation

Sergio Da Silva (2009). Does Macroeconomics Need Microeconomic Foundations?. Economics: The Open-Access, Open-Assessment E-Journal, 3 (2009-23): 1—12. http://dx.doi.org/10.5018/economics-ejournal.ja.2009-23

Assessment

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Comments and Questions


Anonymous - Definitions and Logic
June 28, 2012 - 14:57

I reckon that before discussing this subject the author should define and explain what he means by macroeconomics. Micro is easy enough to explain, since it requires the relationship and behavour of two independent entities only, such as a laborer and an employer. However the macroeconomic "big picture" must include ...[more]

... the whole of our social system and this comprises of a lot mopre than the two entities suggested above.

Macroeconomics is the result of the growth or development of a number of individual microeconomic relationships within a system which seeks a state of equilibrium when it is all cahnging at the same time. This ststement comes from logic not from reading the paper. So it seems to me that once the problem and subject are properly defined and understood, the conclusion is immediately found.