Macro foundations of micro-economics
- Cite this article as:
- Hahn, F. Econ Theory (2003) 21: 227. doi:10.1007/s00199-002-0321-8
- 214 Downloads
This paper attempts to circumvent the nonsense of the representative agent which arises in macroeconomics. It recognises that macro data are relevant to agents' decisions, and so excess demands should contain macro variables as arguments. The macro variables I consider are the price index, unemployment and GNP. This paper should be regarded as a tentative beginning to make macroeconomic theory literate.