... transactions were assumed away. The article also addresses Wicksell's position concerning the so-called Cournot problem (that the general equilibrium system may not be able to provide precise numerical solutions), and his use of the notion of the representative agent in the formulation of the saving function...

... at bringing a system to a better state had to be invented. Braverman interpreted this analytic framework as a “qualitative system of control” of the Soviet economy representing a sort of a third-way solution between neoclassical models of spontaneous coordination of autonomous agents and theories of optimal...

... recommendations for individual agents, organizations, government, and teams. The predefined elements constitutive of these accounts, inspired by simple rules of logic, were now meant to represent the basic demands of rationality and theories of rational decision making specified rules of conduct that were meant...

... of Representative Agents. American Economic Review: Papers and Proceedings 75.2 : 206 -10. Gordon, Robert J., ed. 1974 . Milton Friedman's Monetary Framework: A Debate with His Critics . Chicago: University of Chicago Press. Hansen, Alvin H. 1938 . Full Recovery or Stagnation? New York: Norton...

...: A Debate with His Critics , edited by Robert J. Gordon. Chicago: University of Chicago Press. Hansen, Alvin. 1949 . Monetary Theory and Fiscal Policy . New York: McGraw-Hill. ____. 1953 . A Guide to Keynes . New York: McGraw-Hill. Hartley, James E. 1997 . The Representative Agent...

... is an artifi­ Lucas and Artificial Worlds 77 cial world whose microentities represent economic agents and products. Interactions between these microentities model fundamental economic activities—production, exchange, and consumption. The purpose of an artificial...

.... To account for macroeconomic phenomena, real business cycle theorists developed a simplified version of the general equilibrium theory based on the representative agent. For Solow, the representative agent assumption contradicts the drive towards generality that is the hallmark of axiomatics. As he...

... and the Theory of Representative Agents . American Economic Review: AEA Papers and Proceedings 75.2 : 206 – 10 . Gilbert Christopher L. 1991 . Richard Stone, Demand Theory, and the Development of Modern Econometrics . Economic Journal 101 : 288 – 302 . Goldberger Arthur S. 1964...

... a fundamental role in the General Theory. What Keynes refuses instead is the standard representative agent models—that is, a separate theory of individual be- havior based on the exclusive consideration of the primary quality of self-interest and used as a bridge between micro and macro. As he points out...

... of the quantity theory of money. Friedman, an ancient NBER member, prophesied the monetary theory that was instrumental in the resurgence of neoclassical economics and even for hardening its core, based on the concepts of the natural rate of unemployment, the vertical Phillips curve, the representative agent...

... ordinal utility function; and such a function in turn defines time preferences either of an individual consumer, or of an aggre- gate of such individuals, or finally choices in a centrally planned economy (Koopmans 1960, 288). Add to this the increasing use of a representative agent...

... and chronicler. The princi- ple of “cumulative causation” (as formulated mainly by Nicholas Kaldor) is stressed as one of the main features of the post-Keynesian method in economic theory and policy (22, 279, 282), together with the rejection of the notion of a “representative agent” in economic modeling...

... of the notion of a “representative agent” in economic modeling (99, 194, 265). Robert Lucas’s well-known critique of traditional econometric models is seen as essentially a repetition of Keynes’s main criticism of Jan Tinbergen’s early econometric work, although Harcourt stresses that it does...

... of representative agent, which does not necessarily commit to the hypothesis that all agents in the popu- lation are identical, due to the fact that they are univocally defi ned and differentiated in terms of their preferences. Game theory adopts the same abstract view of the individual without defi ning...

..., almost by definition, in representative-agent models where all agents are the same. The most obvious examples of economists holding such views are the Austrians (Hayek and Robbins), but similar views were also held by Cambridge economists such as Pigou and Robertson. The Austrians went even further...

... in microeconomic decision problems of indi- vidual agents (see Hoover 2012). The argument for microfoundations was barely articulated before Lucas (1980, 711) confronts its impracticality— analyzing the supposedly individual decision problems not in detail but through the instrument of “‘representative...

... a view of theory, particularly when the growth process is interpreted through a representative agent paradigm: I cannot say the same about the use made of the intertemporally opti- mizing representative agent. Maybe I reveal myself as old-fashioned, but I see no redeeming value in using...

... out the essential points in the simplest possible way. I make no claim that this model can be found in Adam Smith, but it is inspired by his thoughts on usury. Suppose, first, there are three agents, each representative of a large and equal-sized group of identical individuals...

... in the postwar growth economics was, not surprisingly, sub- stantially different from Ramsey’s original contribution. The Ramsey- Cass-Koopmans model is a (stochastic) model based on a representative agent who discounts future utility at a constant rate, which is quite different from Ramsey’s model...

... of naive models, 64, 65-69, 85 orthodoxy, 259 natural rate hypothesis tests, 73-74 in noneconomics fields, 4—5 policy evaluation argument, 67-68 pluralism of, 7, 271 representative agents, 77, 85 predictions...