Munich Personal RePEc Archive

Heterodox microeconomics and the foundation of heterodox macroeconomics

Lee, Frederic (2011): Heterodox microeconomics and the foundation of heterodox macroeconomics.

[img]
Preview
PDF
MPRA_paper_30491.pdf

Download (172Kb) | Preview

Abstract

The resolution of the controversy over the microfoundations of macroeconomics is important to heterodox economics. In this essay, I argue that the controversy is due to misspecification. That is, the conventional understanding of the controversy is that it is a reductionist exercise of macroeconomics to mainstream microeconomics. However, mainstream microeconomics is theoretically incoherent and hence cannot provide the microfoundations for any macroeconomics, mainstream or heterodox. In addition, a common position in heterodox economics is that heterodox macroeconomics generates a mainstream microeconomics sub-structure. But it is argued that this is not the case; rather it generates a heterodox microeconomics substructure. The essay concludes with the argument that in heterodox economics the micro-macro dichotomy does not exist and hence the controversy should be dismissed.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.