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Synopsis
There has been little discussion in macroeconomic literature about the propriety or usefulness of representative agent models. This volume aims to evaluate the use of these models as a means of studying aggregate behaviour.
Booknews
Evaluates the use of representative agent models in macroeconomics. Identifies three justifications for the modern use of these models: as a way to avoid the Lucas critique, in the construction of Walrasian models, and as a microfoundation for macroeconomics. Illustrates how these models are inadequate to these tasks, and evaluates the goals themselves, finding that the Lucas critique is unworkable, Walrasian methodology is not useful for macroeconomic study, and rigorous microfoundations are neither possible nor desirable. Annotation c. by Book News, Inc., Portland, Or.