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Microfoundations are an effort to understand macroeconomic phenomena in terms of economic agents' behaviors and their interactions.[1] Research in microfoundations explores the link between macroeconomic and microeconomic principles in order to explore the aggregate relationships in macroeconomic models.
During recent decades, macroeconomists have attempted to combine microeconomic models of individual behaviour to derive the relationships between macroeconomic variables. Presently, many macroeconomic models, representing different theories,[2] are derived by aggregating microeconomic models, allowing economists to test them with both macroeconomic and microeconomic data. However, microfoundations research is still heavily debated with management, strategy and organization scholars having varying views on the "micro-macro" link.[3] The study of microfoundations is gaining popularity even outside the field of economics, recent development includes operation management and project studies.[4]
^Maarten Janssen (2008), 'Microfoundations', in The New Palgrave Dictionary of Economics, 2nd ed.
^• Thomas Cooley, ed., (1995), Frontiers of Business Cycle Research, Princeton University Press. Description and preview. ISBN 0-691-04323-X.
• Michael Woodford (2003), Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press. Description and Table of Contents. ISBN 0-691-01049-8.
^Barney, Jay; Felin, Teppo (May 2013). "What Are Microfoundations". Academy of Management Perspectives. 27 (2): 138–155. doi:10.5465/amp.2012.0107. JSTOR 43822016. S2CID 154370237 – via JSTOR.
^Locatelli, Giorgio; Greco, Marco; Invernizzi, Diletta Colette; Grimaldi, Michele; Malizia, Stefania (2020-07-11). "What about the people? Micro-foundations of open innovation in megaprojects". International Journal of Project Management. 39 (2): 115–127. doi:10.1016/j.ijproman.2020.06.009. hdl:11311/1204792. ISSN 0263-7863. S2CID 225633977. Archived from the original on 3 July 2020.
advantages of microfoundations: Microfoundations provides a modelling structure where data may not be very informative. Microfoundations avoids the Lucas...
New Keynesians adopted rational expectations and built models with microfoundations of sticky prices that suggested recessions could still be explained...
This is in contrast with its rival new Keynesian school that uses microfoundations, such as price stickiness and imperfect competition, to generate macroeconomic...
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...
constraints) that are assumed to govern individual behavior: so-called "microfoundations." If these models can account for observed empirical regularities,...
microeconomic foundations. New Keynesianism developed models to provide microfoundations for Keynesian economics. It incorporated parts of new classical macroeconomics...
Consciousness Studies, 5 (1) p 72. Tsoukalas, I. (2007). Exploring the Microfoundations of Group Consciousness. Culture and Psychology, 13(1), 39-81. Ernst...
ISBN 9780415435505. Délano Alonso, Alexandra & Mylonas, Harris. 2019. "The Microfoundations of Diaspora Politics: Unpacking the State and Disaggregating the Diaspora"...
depend primarily on "the state of long-term expectations." Those are microfoundations. Keynes, John M. (1936). The General Theory of Employment, Interest...
classical macroeconomics. Both sought to rebuild macroeconomics using microfoundations to explain macroeconomic phenomena using microeconomics. Over the course...
Yonghong (2013-05-01). "The Power of Instability: Unraveling the Microfoundations of Bargained Authoritarianism in China". American Journal of Sociology...
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...
aimed at stabilizing the business cycle are welfare-reducing. Since microfoundations are based on the preferences of decision-makers in the model, DSGE...
Christopher H. (June 2002). "Toward a new political methodology: Microfoundations and ART". Annual Review of Political Science. 5 (1): 423–450. doi:10...
2008). "Investing in education as a means and as an end: exploring the microfoundations of the MDGs" (PDF). United Nations Economic Commission for Africa....
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...
macroeconomists, including new Keynesians, reformulated their models with microfoundations, in which microeconomic concepts play a major part. Sometimes an economic...
Edition, Warwick University Press, UK. Maarten C. W. Janssen (1993) "Microfoundations: A Critical Inquiry". Routledge. John F. Muth (1961) "Rational Expectations...
scroll down. pp. 34-58. • _____ (1967). "A Reconsideration of the Microfoundations of Monetary Theory," Western Economic Journal, 6(1), pp. 1–8 (press...
and international aspects. Modern analysis has attempted to provide microfoundations for the demand for money and to distinguish valid nominal and real...
critique, much of modern macroeconomic theories has been built upon microfoundations—i.e., based upon basic assumptions about micro-level behavior. Microeconomic...
Recent work into the democratic norms explanations shows that the microfoundations on which this explanation rest do not find empirical support. Within...
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...
Liquidity trap Measures of national income and output GDP GNI NNI Microfoundations Money Endogenous Money creation Demand for money Liquidity preference...