The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Maarten C. W. Janssen
Reference work entry


The microfoundations literature has attempted to bridge the gap between microeconomic and macroeconomic models. Many models in this literature have used the theoretical construct of a representative agent. Economy-wide outcomes are thereby presented as if they were the result of the optimizing behaviour of one individual. Emergent properties at the macro level are by construction precluded from the analysis. Other literatures exist where emergent properties are taken to be at the heart of the quest for microfoundations.


Aggregation (theory) Austrian economics Behavioural macroeconomics Bounded rationality Classical economics Coordination failure Effective demand Efficiency wages Evolution Expectations Fairness Fixprice models Frictions Game theory General equilibrium Hayek, F. von Imperfect competition Involuntary unemployment IS–LM Keynesianism Labour supply Learning Lucas, R Market clearing Menu cost Methodological individualism Microfoundations Multiplier Neoclassical synthesis New Classical economics New Keynesian macroeconomics Other-regarding preferences Overlapping generations model of general equilibrium Phillips curve Post-Keynesian economics Residential segregation Rational behaviour Rational expectations Real business cycles Reciprocity Representative agents Spontaneous order Sticky prices Strategic complementarities Technology shocks Vienna Circle 

JEL Classification

D0 E0 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Maarten C. W. Janssen
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