Zero Sum Games
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Hi, Sara. In Economic theory, the problem of aggregation arises when we want to combine all micro-variables into a single macro-variable. For example, if we have a collection of individual demand functions, is it possible to somehow add [View full text and thread]
|02/21/2001 10:13 AM by Rodrigo; Aggregation|
The problem of macroeconomics is exacerbated by the need to aggregate. eg how much is 1kg of wheat and 1 litre of coke?
|02/20/2001 09:05 AM by Brandn; Aggregation|
In the context of positive vs normative economics, we sometimes come across problems identifying the variables which constitute the subject matter of analysis. In microeconomics, this problem is less evident as we may be able to observe say, the price of 1.5 litre of coke is say $2. In macroeconomics however, do we know what "national product" means? What exactly is price level? Whose price level should we use as a guage? What is the meaning of money? These issues are rather complex.
You may wish to refer to Begg D, Fischer S & Dornbush R "Economics" Chp 20 (5th edition) for some reference :) [Manage messages]
I would like to know what this theory is and how it is used [View full text and thread]
|02/19/2001 05:23 PM by sara; Economic theory of aggregation|