Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
976761 | Physica A: Statistical Mechanics and its Applications | 2010 | 7 Pages |
Abstract
We show how macroeconomic dynamics can be derived from asymmetric information. As an illustration of the utility of this approach we derive the equilibrium density, non-equilibrium densities and the equation of motion for the response to a demand shock for productivity in a simple economy. Novel consequences of this approach include a natural incorporation of time dependence into macroeconomics and a common information-theoretic basis for economics and other fields seeking to link micro-dynamics and macro-observables.
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
Raymond J. Hawkins, Masanao Aoki, B. Roy Frieden,