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In addressing the precipitous drop in trade volumes in the recent crisis, the real and financial explanations have sometimes been juxtaposed as competing explanations. However, they can be recon...
In addressing the precipitous drop in trade volumes in the recent
crisis, the real and financial explanations have sometimes been juxtaposed as competing explanations. However, they can be reco...
Microfoundations of Macro Fluctuations: Pattern of Large Numbers, Relative Price Movements, And Arbi
2008/1/17
The law of large numbers shows that the relative deviation for a macro system with N independent elements is of the order of . refore, the Lucas' approach to a microfoundations for macroeconomic fluct...
Inquiry into the Micro Foundation of Macro Fluctuations: The Law of Large Numbers and Arbitrage unde
2008/1/17
The law of large numbers introduces an order of where N is the number of elements in a linear stochastic system with or without growth. Comparing observed magnitudes of macro fluctuations and numbers ...