One Suggestion for Microfoundation of Non-Walrasian Disequilibrium Macroeconomics: Matching Theory with Dual Decision

Ogawa, Shogo (2021): One Suggestion for Microfoundation of Non-Walrasian Disequilibrium Macroeconomics: Matching Theory with Dual Decision.

Abstract

In this study, we present a canonical static disequilibrium model which is micro-founded. The model includes standard optimization, stochastic quantity rationing, and market friction. In temporary equilibrium, every agent makes a decision under perceived quantity signals of all markets. This specifies market spill-over effect which could be interpreted as dual-decision effect. In temporary equilibrium, market friction mixes classical and Keynesian mechanism for unemployment so that the non-Walrasian regime dividing becomes obscure.

• Item Type: MPRA Paper
• Language: English
• Keywords: Non-Walrasian economics; Disequilibrium macroeconomics; Market friction
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D59 - Other; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity

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