TEORIA MICROECONOMICA [C. E. Ferguson y J. P. Gould] on * FREE* shipping on qualifying offers. TEORIA MICROECONOMICA [Ferguson C E Gould J P] on *FREE* shipping on qualifying offers. Teoria Microeconómica de Ferguson C E Gould. Teoría microeconómica. Front Cover. C. E. Ferguson, John P. Gould. Fondo de Cultura Bibliographic information. QR code for Teoría microeconómica.
|Published (Last):||18 September 2016|
|PDF File Size:||12.89 Mb|
|ePub File Size:||11.83 Mb|
|Price:||Free* [*Free Regsitration Required]|
In macroeconomics, it is often useful to start from accounting identities between aggregate magnitudes. Since identities are true by definition, they offer a good way to organize concepts. However, it is important to keep in mind that identities in themselves say nothing about causation. In order to build a theory on the basis of fergusoon identities, it is necessary to make behavioral assumptions.
Unlike the teoriz themselves, these behavioral assumptions are of course contestable.
Identities Do Not Imply Equilibrium
Consider, initially, a simple two-sector closed-economy model with no government or external sector. For such an economy, actual saving, S, equals actual investment, I:. This is an identity, true by definition.
However, it does not necessarily imply an equilibrium situation. Macroeconomic equilibrium can be defined as a situation in which plans are realized.
In the simple two-sector model, equilibrium requires that desired saving, S dbe equal to desired investment, I d:. The significance of desires or plans is that when they go unrealized there will be disequilibrium and an impetus for changed behavior.
Aggregate demand, AD, will differ from output or aggregate supply, AS, and firms will experience unanticipated variations in inventory levels. These unexpected changes in inventories are counted in national micrkeconomica as part of actual investment.
However, the changes were not intended, so can be thought of as unintended investment, I u. In a disequilibrium situation, the excess demand or excess supply will equal unintended investment by definition: Otherwise, households will be motivated to alter spending and saving behavior.
To theorize further it is necessary to make behavioral assumptions. For miccroeconomica, it is relevant to ask how firms will respond to unanticipated variations in inventories.
Economists influenced by Keynes or Kalecki assume that firms will respond to a situation of excess supply in which they experience an unexpected buildup in inventories mainly by cutting back production.
There might also be price reductions but output adjustments are assumed to dominate. In the case of excess demand and an unanticipated dwindling of inventory stocks, the response of firms is assumed by Keynes and Kalecki influenced economists to depend on whether there is excess capacity. If there is, firms are thought to expand output to meet the stronger demand. This includes an increase in desired investment to restore inventories to the preferred level.
The extra desired investment will cause a multiplied increase in income. As a result, desired saving will microeconomida rise. Income will continue to adjust until desired saving is equal to desired investment. As output nears full employment, there may also be some price effects but the output response is assumed to dominate.
Modern day neoclassicals also generally accept this logic in the short run.
It is behavioral assumptions such as these fergusoj are at the heart of disagreements among macroeconomists. When Keynesian and Kaleckian economists hold that investment determines saving through income adjustments, they are not talking about actual investment and saving, but desires.
They are referring to the kind of multiplier process described in the previous paragraph in which planned saving adjusts passively to microecnoomica investment through income adjustments. Likewise, when neoclassicals maintain that in the long run investment adjusts to saving via interest-rate adjustments, they are referring to desires, not actual saving and investment.
Similar logic applies to more elaborate models. For example, in a three-sector closed economy with government but no external sector the following identity holds:.
On the left-hand side, G is government spending and T is tax revenue. In words the identity says:. This identity refers to actual net private saving and says nothing in itself about desires, equilibrium or causation. Equilibrium in this model requires that desired net private saving equals the budget deficit. Otherwise, even though the identity holds, microsconomica will be impetus for behavioral change. As in the two-sector model, any disequilibrium is captured in the definition of unintended investment and unintended saving.
If desired net private saving, I — S dexceeds the budget deficit, economists assuming Keynesian or Kaleckian causation suppose that there will be negative income adjustments.
This is argued to occur because etoria private sector is attempting to hit a net saving target that is incompatible with the budget deficit. This will be exacerbated if households attempt to maintain their level of planned saving alongside weak investment.
Conversely, if the budget deficit exceeds desired net private saving, the effects will depend on whether there is excess capacity. If there is, there will be an increase in output and income in response to stronger private spending. You can read that as saying is that income Y can only buy what is available for sale in aggregate in a money system.
Maybe, being flexible with the definition of short run, one can extend it from individual firms to industries, i. So, assuming my doubt is pertinent, this is my question: Do neoclassicals address this difficulty?
The short run in macro models is often taken to be a period for which it is reasonable or at least not too unreasonable to assume the productive capacity of the economy remains unchanged. So, in a short-run model, the effects of investment on income are considered, but the effects of investment on productive capacity are ignored. In a long-run model, both effects of investment are taken into account. The neoclassical position — post Kalecki and Keynes — acknowledges that causation goes from investment to income and saving but maintains that the productive capacity consistent with full employment and intertemporal preferences will be brought about in the long run by investment adjusting to the level consistent with full capacity savings in response to real interest-rate movements.
Even in the long run, there is still a causative effect of investment on income and saving, but the level of investment is argued to be determined by the real interest rate.
Which I presume is a mystical value that can only be augured by high priests in the temple of bankers. And then only ferbuson everybody pays them lots of money. They are generally more interested in whether they can sell anything and what mark up they can get.
So, the definition of short run in macro is different to that on micro just in case I was mistaken, I re-checked with The Penguin Dictionary of Economics. The emphasis can be different in different neoclassical models, but basically the long run refers to a situation where everything relevant to the model is flexible.
Well, Ferguuson has asked that I occasionally put on a neoclassical hat while he works through a mainstream textbook as part of a Big Challenge. I think that there is no doubt that sophisticated investors, which means the big money, pays close attention to the real interest rate relative to the rate of profit, both in the present and into the future through expectations, as well as geographically, which accounts for capital flows.
What is the reasoning that suggesting it will cancel and overcome lack of equilibrium through the action of market forces? This seems to me to be the characteristic of a model that is not representational given the prevalence of cycles where one would expect linearity to prevail based on their assumption.
Do neoclassical economists not bother with empirical historical evidence? The idea is the factor equalize through the rational pursuit of max u, which is reasonable conceptually. I doubt that any economist would claim that this is anymore than a conceptual model as an ideal base case for thinking about a closed economy. National economies are not closed, and there is lots of friction in the system. Moreover, it is not a matter of increasing complication as in natural system but of increasing complexity due to emergence, adaptation, etc, fergusom complex systems, which teoriw system are, especially fergudon societies over time.
The current state of economics since the fall of the Berlin and especially since the dissolution of the USSR is the introduction of over a billion people to the global economy and enormous resources that were not previously available.
Moreover, technological innovation has hastened the speed of globalization. The entire world can now be considered from the POV of a functioning closed system, albeit with a great deal of imbalance to be worked through and a lot of friction involved. I would say that it is actually unhelpful in thinking about complex adaptive non-ergodic systems if it creates the impression that they function like even very complicated but simple in the sense of non-complex systems that are ergodic.
Marx had fergison explained this more fully by micrpeconomica sociology in economics, which is necessary in analyzing complex social systems. For example, to ignore the power relationships involved fergusln class structure and their dynamics is to completely miss the actual dynamic and falsely concluded that the chief driver is the market. That is what most modern economics does and therefore misses most of what is actually going on in the working of a system that is simultaneously social, political and economic due to the institution arrangements in terms of which it functions.
Every anthropologist and sociologists knows this but somehow economists have missed it so far. Another thing I left about concerning the neoclassical model.
This is, of course, a huge oversimplification of agency theory. To base ferugson equilibrium theory microeclnomica a closed system with one type of atom acting with one type of force and no friction is a bit of an oversimplification. I agree that the context in which long- and short-run are used is what defines their meaning.
The dictionary, by the way, says the same: However and, fair dinkum, I am not saying this just to rubbish toeria theory it all sounds kind of ambiguous and confusing, to me, and prone to create misunderstanding, too. For such an economy, actual saving, S, equals actual investment, I: In the simple two-sector model, equilibrium requires that desired saving, S dbe equal to desired investment, I d: For example, in a three-sector closed economy with government but no external sector the following identity holds: In words the identity says: You can then classify: That is a bit puzzling.
It highlights the madness. My comment is just a side thought. What is the aggregation function they have in mind I wonder? And I just teoriz with this business! Have you ever heard of it?