Previous microeconomic analyses of consumer choice in the housing market have either assumed the independence of irrelevant alternatives or have represented housing heterogeneity by some arbitrary aggregation of dwellings. This paper presents an empirical analysis of housing choice based upon individual households and dwellings which also estimates the degree of independence of neighborhood and...

We consider a financial market model with a large number of interacting agents. Investors are heterogeneous in their expectations about the future evolution of an asset price process. Their current expectation is based on the previous states of their “neighbors” and on a random signal about the “mood of the market.” We analyze the asymptotics of both aggregate behavior and asset prices. We give...

Cooper and Willis (2003) is the latest in a sequence of criticisms of our methodology for estimating aggregate nonlinearities when microeconomic adjustment is lumpy. Their case is based on “reproducing” our main findings using artificial data generated by a model where microeconomic agents face quadratic adjustment costs. That is, they supposedly find our results where they should not be found....

The building of a modern, market economy requires the establishment of undirected systems of coordination and order. Yet, for three hundred years, social theorists have grappled with the project of explaining the basis of socio-economic order. The more recent attempt of mainstream economics to base macroeconomics on ‘sound microeconomic foundations’ is a modern version of this project. All thes...

The core industries of the new information economy are characterized by imperfect competition, asymmetric information or external effects. Thus, well-designed microeconomic policies, in the form of competition policies, technology policies or combinations of these, have strong potential of generating welfare improvements and promoting social efficiency. This paper emphasizes innovation-intensiv...

My comments may be summarised by an inversion of Solow’s famous comment that the information technology productivity miracle can be seen everywhere but in the productivity statistics. By contrast, the Australian productivity miracle can be seen only in the productivity statistics. The lesson of everyday life is that people are running harder to stay in the same place. More formally, an increase...

Australia is undoubtably a nation rich with opportunities, with extensive social and economic infrastructure, stable and responsible government, and abundant natural and developed resources. But Australia also faces some significant challenges, including reducing unacceptably high levels of unemployment, managing environmental concerns, and responding effectively to global competition and struc...

This report explores how well known techniques from micro economics can be used to interpret and solve aspects of resource allocation problems in dis tributed systems The principle features of the relevant economic theory are described before the report goes on to investigate how the theory can be used to solve an instance of the load balancing problem in a dis tributed system

This quotation appears at the beginning of the Policy Recommendations section of the Organization for Economic Cooperation and Development's recent jobs study (OECD, 1994). However, of the fifty-nine separate recommendations only three concern macroeconomic policies, and but 10 percent of the background analysis is concerned with macroeconomic issues. The three specific macroeconomic recommenda...

Supply Chain Management as a business strategy can combine both microeconomic and macroeconomic aspects of preferred value chains. This paper (1) shows the impact of SCM, (2) stretches out the three dimensions of performance, costs and quality of the processes along the supply chain and (3) highlights the SCM-enabler. The method of a process chain analysis is demonstrated for the allocation of ...