Tuesday, August 16, 2016

video: Matheus Grasselli on complexity economics

I'll preface this by saying I do not trust people who associate with Marshall Auerback, because he likes appearing on Vladimir Putin's disinformation & propaganda network Russia Today.

Then again, I lived through the previous Cold War.

Nevertheless, complexity economics is the sort of thing I'd like to get into in graduate school:

Weird that he's in my math department and not my economics department.

This brings up an interesting idea:

If, for example in the case of a labour market, you're saying "there's the labour supply curve derived from the labour-leisure utility model, and there's a labour demand curve derived from MPL, and where the curves intersect you get an equilibrium", to what extent is that really a "microfoundation"?

I mean, instead of aggregating all labourers and assuming a constant utility curve, and aggregating all firms and assuming a single MPL, and assuming no firm has market power over labour, and assuming a magical auctioneer that acts as the mechanism of equilibrium, why not instead build a microfoundation on a market of heterogeneous agents that individually enter into trades based on their own power, strategies and the prevailing environment?

What sounds like more of a microfoundation to you?

Should be easy to do with computers nowadays, I'd think.

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