Skip to main content
Reconstructing Macroeconomics
  • Get access
    Check if you have access via personal or institutional login
  • Cited by 21
  • Cited by
    This (lowercase (translateProductType product.productType)) has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Di Guilmi, Corrado 2018. Analytical Political Economy. p. 39.

    Brummitt, Charles D. Huremović, Kenan Pin, Paolo Bonds, Matthew H. and Vega-Redondo, Fernando 2017. Contagious disruptions and complexity traps in economic development. Nature Human Behaviour, Vol. 1, Issue. 9, p. 665.

    Di Guilmi, Corrado 2017. THE AGENT-BASED APPROACH TO POST KEYNESIAN MACRO-MODELING. Journal of Economic Surveys, Vol. 31, Issue. 5, p. 1183.

    Nachane, Dilip 2017. Dynamic stochastic general equilibrium (DSGE) modelling in practice: identification, estimation and evaluation. Macroeconomics and Finance in Emerging Market Economies, Vol. 10, Issue. 2, p. 107.

    Kaizoji, Taisei 2016. Toward economics as a new complex system. The European Physical Journal Special Topics, Vol. 225, Issue. 17-18, p. 3225.

    Landini, Simone Gallegati, Mauro and Stiglitz, Joseph E. 2015. Economies with heterogeneous interacting learning agents. Journal of Economic Interaction and Coordination, Vol. 10, Issue. 1, p. 91.

    Biondi, Yuri 2015. Accounting and the formation of share market prices over time: a mathematical institutional economic analysis through simulation and experiment. Applied Economics, Vol. 47, Issue. 34-35, p. 3651.

    Biondi, Yuri and Giannoccolo, Pierpaolo 2015. Share price formation, market exuberance and financial stability under alternative accounting regimes. Journal of Economic Interaction and Coordination, Vol. 10, Issue. 2, p. 333.

    Bucciarelli, Edgardo and Silvestri, Marcello 2013. Hyman P. Minsky's unorthodox approach: recent advances in simulation techniques to develop his theoretical assumptions. Journal of Post Keynesian Economics, Vol. 36, Issue. 2, p. 299.

    Chen, He and Inoue, Jun-ichi 2013. Learning Curve for Collective Behavior of Zero-Intelligence Agents in Successive Job-Hunting Processes with a Diversity of Jaynes-Shannon’s MaxEnt Principle. Evolutionary and Institutional Economics Review, Vol. 10, Issue. 1, p. 55.

    Helbing, Dirk 2013. Economics 2.0: The Natural Step towards a Self-Regulating, Participatory Market Society. Evolutionary and Institutional Economics Review, Vol. 10, Issue. 1, p. 3.

    Durlauf, Steven N. 2012. Complexity, economics, and public policy. Politics, Philosophy & Economics, Vol. 11, Issue. 1, p. 45.

    Gallegati, Mauro and Kirman, Alan 2012. Reconstructing economics. Complexity Economics, Vol. 1, Issue. 1, p. 5.

    Mandel, Antoine 2012. Agent-based dynamics in the general equilibrium model. Complexity Economics, Vol. 1, Issue. 1, p. 105.

    Ito, Keiko and Lechevalier, Sébastien 2009. The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan. Review of World Economics, Vol. 145, Issue. 3, p. 405.

    Chen, Shu-Heng 2009. Wiley Encyclopedia of Computer Science and Engineering.

    Aruka, Yuji and Akiyama, Eizo 2009. Non-self-averaging of a two-person game with only positive spillover: a new formulation of Avatamsaka’s dilemma. Journal of Economic Interaction and Coordination, Vol. 4, Issue. 2, p. 135.


    Landini, Simone and Uberti, Mariacristina 2008. A Statistical Mechanic View of Macro-dynamics in Economics. Computational Economics, Vol. 32, Issue. 1-2, p. 121.

    Aruka, Yuji 2008. The Evolution of Moral Science: Economic Rationality in the Complex Social System. Evolutionary and Institutional Economics Review, Vol. 4, Issue. 2, p. 217.

  • Export citation
  • Recommend to librarian
  • Recommend this book

    Email your librarian or administrator to recommend adding this book to your organisation's collection.

    Reconstructing Macroeconomics
    • Online ISBN: 9780511510670
    • Book DOI:
    Please enter your name
    Please enter a valid email address
    Who would you like to send this to *
  • Buy the print book

Book description

In this book, the authors treat macroeconomic models as composed of large numbers of micro-units or agents of several types and explicitly discuss stochastic dynamic and combinatorial aspects of interactions among them. In mainstream macroeconomics sound microfoundations for macroeconomics have meant incorporating sophisticated intertemporal optimization by representative agents into models. Optimal growth theory, once meant to be normative, is now taught as a descriptive theory in mainstream macroeconomic courses. In neoclassical equilibria flexible prices led the economy to the state of full employment and marginal productivities are all equated. Professors Aoki and Yoshikawa contrariwise show that such equilibria are not possible in economies with a large number of agents of heterogeneous types. They employ a set of statistical dynamical tools via continuous-time Markov chains and statistical distributions of fractions of agents by types available in the new literature of combinatorial stochastic processes, to reconstruct macroeconomic models.


Reviews of the hardback:‘Thoughtful macroeconomists are uncomfortably aware that consumers, firms, and workers vary widely in their local environments, perceptions, and beliefs. Ignoring this heterogeneity, as 'modern macro' does, is a likely source of systematic error. Aoki and Yoshikawa propose to repair this failure by modeling the macroeconomy explicitly as a cloud of interacting particles. The goal is to deduce the distributions of economic characteristics that describe the system as a whole. There are already some surprising beginning results, including a novel treatment of aggregate demand, and one can expect more when their approach is combined with standard economic reasoning. This is the start, not the finish, of a potentially far-reaching research program. It should excite the curiosity of all those thoughtful macroeconomists.'

Robert M. Solow - Massachusetts Institute of Technology

‘This book is a bold and daring challenge to the growing influence of neoclassical equilibrium theory in the field of modern macroeconomics. Not simply an approach to traditional Keynesian theory that attempts to refine it and make it more accurate, the treatment makes use of a new methodology in statistical physics and combinatorial stochastic processes to mount a direct challenge to real business cycle theory and rational expectations theory. Professor Aoki has made important contributions to the application of statistical physics to economics, and Professor Yoshikawa is a leading Japanese economist who has done outstanding work in the fields of both theoretical and empirical economics. This book is the superb product of the optimum combination of these two scholars' different talents.'

Ryuzo Sato - New York University and University of Tokyo

‘Masanao Aoki and Hiroshi Yoshikawa have written no less than the foundation of a new approach (and I believe the right one) to the core problem of macroeconomics, which is to aggregate behaviors by stressing the importance of the heterogeneity and variability of real economic agents. Getting inspiration from and adapting the concepts and tools of statistical physics, they masterfully derive important and novel insights on the most crucial problems of the field: the principle of effective demand, role of uncertainty, sticky prices/wages, and the endogenous business cycle. This book is perhaps the first successful effort to develop macroeconomics as a real science on par with physics, with falsifiable hypotheses underpinned by sound micro-principles and testable predictions.'

Didier Sornette - Swiss Federal Institute of Technology, Zurich

'This book shows the impossibility of efficient equilibria in economics with market clearing mainstream hypotheses when such an economy is populated by a large number of heterogenous agents. In such a case, Aoki and Yoshikawa show that, through combined stochastic processes, a new approach to macroeconomics is not only possible: it is real and this book shows how to reach it.'

Mauro Gallegati - Università Politechnia delle Marche

‘Reconstructing Macroeconomics is an ambitious, informative, challenging … book that addresses fundamental questions of economic theory on many levels. In my view mainstream macroeconomists can only benefit by becoming familiar with the point of view Aoki and Yoshikawa represent so ably here … Those who aspire to create a new macroeconomics, including the various schools of 'heterodox' economics, can also learn a lot from this book.'

Source: Journal of Economic Behavior and Organization

Refine List
Actions for selected content:
Select all | Deselect all
  • View selected items
  • Export citations
  • Download PDF (zip)
  • Send to Kindle
  • Send to Dropbox
  • Send to Google Drive
  • Send content to

    To send content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to .

    To send content items to your Kindle, first ensure is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle.

    Note you can select to send to either the or variations. ‘’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

    Find out more about the Kindle Personal Document Service.

    Please be advised that item(s) you selected are not available.
    You are about to send

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Please provide a title, maximum of 40 characters.


Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 410 *
Loading metrics...

Book summary page views

Total views: 616 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 20th August 2018. This data will be updated every 24 hours.