高级微观经济学 (黄有光) AdMicro-L7-Mesoeconomics.docVIP

ECC5650- Microeconomic Theory Topic 7 Mesoeconomics A Micro- Macroeconomic Analysis This topic provides a micro-macroeconomic analysis with elements of general equilibrium without assuming perfect competition. It concentrates on a representative firm, taking account of the influence of macro variables like the price level, aggregate income/output, and interactions with the rest of the economy. It is called mesoeconomics as it synthesizes micro, macro and general equilibrium analysis. It provides many comparative-static results, including the Keynesian and the Monetarist results on the effects of a change of nominal aggregate demand as special cases. References Yew-Kwang Ng, “A micro-macroeconomics analysis based on a representative firm”, Econmica, 1982, 49: 121-139. Y.-K. Ng, Mesoeconomics: A Micro-Macro Analysis, London: Harvester, 1986. Ng, “Business confidence and depression prevention: A mesoeconomic perspective”, American Economic Review, 1992, 82(2): 365-371. Ng, “Non-neutrality of money under non-perfect competition: why do economists fail to see the possibility?” In Arrow, Ng, and Yang, eds., Increasing Returns and Economic Analysis, London: Macmillan, 1998, pp.232-252. Ng, “On estimating the effects of events like the Asian financial crisis: A mesoeconomic approach”, Taiwan Economic Review（經濟論文叢刊）, 27 (4): 393-412, December 1999. Mesoeconomic Analysis (A2)1 2(A1) 3(A3) (A4) 4 Two simplifications: 1. used by virtually all macro and aggregative studies of ignoring distributional effects by replacing the vector (1, ..., (I by ( ( ((i. 2. concentrate on the representative firm and replace the price vector of all other firms by the average price. 5(A5) In Ng (1986, Appendix 3I), a fully general equilibrium analysis is used to show that (1) for any (exogenous) change (in cost or demand) there exists (in a hypothetical sense) a representative firm whose response to the change accurately (no approximation needed) represent