The Great Recession confirmed a bedrock principle of modern consumption theory: It is impossible to explain aggregate spending behavior without knowledge of the underlying microeconomic distribution of circumstances and choices across households. National accounting frameworks therefore need to be augmented by “bottom up” measures that both (a) capture the microeconomic heterogeneity (in expend...

This paper aims to explain the macroeconomic volatility due to microeconomic shocks to one or several sectors, recognizing the non-symmetrical relation in the interaction among the Ecuadorian economic sectors. To grasp the economic structure of this emerging economy, a statistical analysis of network data is applied to the respective input-output matrix of Ecuador from 1975 until 2012. We find ...

To prevent their theories from becoming as unhinged as the Phillips curve, modern macroeconomic theorists conventionally build from microeconomic fundamentals. Recent empirical studies of macroeconomic phenomena that heavily use data from individual producers, exemplified by the work of Davis, Haltiwanger, and Schuh (1996), have convinced empirical macroeconomic practitioners they should do the...

As described in chapter 1, computer networks must contend with a diverse variety of network applications. Given a finite supply of network resources and ever changing demands, networks need to allocate resources in a fair and efficient manner to provide the QoS these applications require. Different from single-user allocation (chapters 2 and 3), this chapter concerns the allocation of resources...

We propose and test a conceptual model allowing for investigating the microeconomic impact of investments in Telecoms, where Telecoms are used as a proxy for Information and Communications Technology (ICT) in general. While the impact of investments in Telecoms on the macroeconomic outcomes in the form of productivity growth has been previously investigated, there seems to be no published resea...

Structural vector-autoregressive models are potentially very useful tools for guiding both macroand microeconomic policy. In this paper, we present a recently developed method for estimating such models, which uses nonnormality to recover the causal structure underlying the observations. We show how the method can be applied to both microeconomic data (to study the processes of firm growth and ...

In this relatively short survey, we present the core elements of the microeconomic analysis of insurance markets at a level suitable for senior undergraduate and graduate economics students. The aim of this analysis is to understand how insurance markets work, what their fundamental economic functions are, and how efficiently they may be expected to carry these out. Full text available at: http...

This chapter develops a unified framework for the study of how network interactions can function as a mechanism for propagation and amplification of microeconomic shocks. The framework nests various classes of games over networks, models of macroeconomic risk originating from microeconomic shocks, and models of financial interactions. Under the assumption that shocks are small, we provide a fai...

For optimal solutions in health care, decision makers inevitably must evaluate trade-offs, which call for multi-attribute valuation methods. Researchers have proposed using best-worst scaling (BWS) methods which seek to extract information from respondents by asking them to identify the best and worst items in each choice set. While a companion paper describes the different types of BWS, applic...