Methodological Foundations of Macroeconomics
Keynes and Lucas

An investigation of the methodological and epistemological foundations of macroeconomic theory.

Allessandro Vercelli (Author)

9780521074735, Cambridge University Press

Paperback / softback, published 28 August 2008

288 pages
22.4 x 14.4 x 1.7 cm, 0.43 kg

"The book provides an extensive and up-to-date list of references and helpful subject and author indices. The book is well written and will be a valuable source to academicians." Southern Economic Journal

This book is an investigation of the methodological and epistemological foundations of macroeconomic theory, based on an examination of the theories of Keynes and Lucas. It is divided into two parts. In the first Professor Vercelli discusses the methodological issues which lie behind the conflict among different schools of thought in macroeconomics (equilibrium and disequilibrium, risk and uncertainty, rationality and causality). These issues are central to the current debate not only in many branches of economics, but also in other scientific disciplines. The traditional point of view of science based on equilibrium, stability and determinism has been increasingly challenged by a new point of view in which disequilibrium, instability and uncertainty play a crucial role. This, the author argues, is bound to put macroeconomics in a new, more promising position. In the second part of the book the author compares the two main alternative research programmes in macroeconomics: that outlined by Keynes in his 'General Theory', and that suggested by Lucas, the leader of the new classical economists.

Preface
1. Introduction
Part I. Methodological Foundations Of Macroeconomics: 2. Equilibrium, disequilibrium and economic theory
3. Dynamic instability and economic models
4. Structural instability and economic change
5. Uncertainty, predictability and flexibility
6. Rationality and expectations
7. Probabilistic causality and economic analysis: Suppes, Keynes, Granger
Part II. Keynes After Lucas: 8. Lucas's scientific paradigm
9. Lucas's heuristic model
10. The real equilibrium business cycle and Lucas's attempt at a synthesis
11. Keynes's heuristic model: general observations
12. Money and production in Schumpeter and Keynes: Two dichotomies
13. Keynes's heuristic model: methodological aspects
14. Conclusions
References
Index.

Subject Areas: Economic theory & philosophy [KCA]