Book contents
- Frontmatter
- Contents
- List of Contributors
- Foreword by Alan Kirman
- Introduction
- PART I WHERE WE ARE IN MACRO AND HOW WE GOT THERE
- PART II EDGING AWAY FROM THE DSGE MODEL
- 5 Social Interactions and Macroeconomics
- 6 Macroeconomics and Model Uncertainty
- 7 Restricted Perceptions Equilibria and Learning in Macroeconomics
- 8 Not More So: Some Concepts Outside the DSGE Framework
- PART III LEAPING AWAY FROM THE DSGE MODEL
- PART IV LETTING THE DATA GUIDE THEORY
- PART V POLICY IMPLICATIONS
- Bibliography
- Index
5 - Social Interactions and Macroeconomics
Published online by Cambridge University Press: 02 December 2009
- Frontmatter
- Contents
- List of Contributors
- Foreword by Alan Kirman
- Introduction
- PART I WHERE WE ARE IN MACRO AND HOW WE GOT THERE
- PART II EDGING AWAY FROM THE DSGE MODEL
- 5 Social Interactions and Macroeconomics
- 6 Macroeconomics and Model Uncertainty
- 7 Restricted Perceptions Equilibria and Learning in Macroeconomics
- 8 Not More So: Some Concepts Outside the DSGE Framework
- PART III LEAPING AWAY FROM THE DSGE MODEL
- PART IV LETTING THE DATA GUIDE THEORY
- PART V POLICY IMPLICATIONS
- Bibliography
- Index
Summary
Political economy … finds the laws underlying a mass of contingent occurrences. It is an interesting spectacle to observe here how all of the interconnections have repercussions on others, how the particular spheres fall into groups, influence others, and are helped or hindered by these. This interaction, which at first sight seems incredible since everything seems to depend on the arbitrary will of the individual, is particularly worthy of note …
G. W. F. Hegel, Elements of the Philosophy of RightWithin economics, social interactions research constitutes a growing area of study. This research represents a good faith attempt to introduce substantive sociological factors into economic modeling. As such, this work represents a significant departure from the sorts of market-mediated interdependences between individuals that one finds in general equilibrium theory. While the substantive ideas underlying this work may be found in now-classic papers such as Loury (1977), the modern social interactions literature is quite young. Despite this, there are now an impressive range of applications of social interactions models in microeconomic contexts. Examples of phenomena where empirical evidence of social interactions has been found include (1) crime (Glaeser, Sacerdote, and Scheinkman [1996], Sirakaya [2003]), (2) welfare and public assistance use (Aizer and Currie [2004], Bertrand, Luttmer, and Mullainathan [2000]), (3) fertility (Brooks-Gunn et al. [1993], Rivkin [2001]), (4) housing demand and urban development (Irwin and Bockstaed [2002], Ioannides and Zabel [2003a, b]), (5) contract determination (Young and Burke [2001, 2003]), (6) employment (Oomes [2003], Topa [2001], Weinberg, Reagan, and Yankow [2004]), (7) cigarette smoking (Krauth [2003], Nakajima [2003]), (8) school performance (Boozer and Cacciola [2001], Graham [2005]) and even (9) medical techniques (Burke, Fournier, and Prasad [2004]).
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- Information
- Post Walrasian MacroeconomicsBeyond the Dynamic Stochastic General Equilibrium Model, pp. 97 - 115Publisher: Cambridge University PressPrint publication year: 2006
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