Other, , Prof. Steven Keen
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Updated On 02 Feb, 19
4.1 ( 11 )
In the last lecture I showed that the Neoclassical model of consumer behavior doesnt work, and is computationally impossible. In this lecture, I show that even if it did work, a market demand curve derived by aggregating the demands of numerous utility-maximizing individuals can have any shape at all. The so-called Sonnenschein-Mantel-Debreu conditions (first discovered in 1953 by Gorman) show that even market demand cant be represented by the demand of a single utility-maximizing consumer--yet Neoclassical DSGE models treat the entire economy as a single utility maximizer.
Sep 12, 2018
Excellent course helped me understand topic that i couldn't while attendinfg my college.
March 29, 2019
Great course. Thank you very much.