SilasBarta comments on Mathematicians and the Prevention of Recessions - Less Wrong

8 Post author: JonahSinick 25 May 2013 04:12AM

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Comment author: SilasBarta 26 May 2013 09:31:32PM 1 point [-]

I'm referring the commonly-known problem of deriving macro results from micro, which we also talked about in those exchanges, and during which you rejected the claim that failing to so derive results is a reason to reject the macro conclusions. If you remember differently, give a link.

Comment author: jsalvatier 29 May 2013 07:41:57AM 0 points [-]

Macro results are definitely derivable from micro principles: http://goodmorningeconomics.wordpress.com/2012/04/07/the-backrub-economy-a-simple-mathematical-model-of-monetary-disequilibrium/ .

I think we discussed that we haven't seen the AS/AD models derived from micro principles. I'm not sure this can't be done, its just not commonly discussed, and I don't see a good use for those concepts so I haven't tried to find a derivation.