Microfoundations

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Microfoundations are an effort to understand macroeconomic phenomena in terms of economic agents' behaviors and their interactions.[1] Research in microfoundations explores the link between macroeconomic and microeconomic principles in order to explore the aggregate relationships in macroeconomic models.

During recent decades, macroeconomists have attempted to combine microeconomic models of individual behaviour to derive the relationships between macroeconomic variables. Presently, many macroeconomic models, representing different theories,[2] are derived by aggregating microeconomic models, allowing economists to test them with both macroeconomic and microeconomic data. However, microfoundations research is still heavily debated with management, strategy and organization scholars having varying views on the "micro-macro" link.[3] The study of microfoundations is gaining popularity even outside the field of economics, recent development includes operation management and project studies.[4]

  1. ^ Maarten Janssen (2008), 'Microfoundations', in The New Palgrave Dictionary of Economics, 2nd ed.
  2. ^ • Thomas Cooley, ed., (1995), Frontiers of Business Cycle Research, Princeton University Press. Description and preview. ISBN 0-691-04323-X.    • Michael Woodford (2003), Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press. Description and Table of Contents. ISBN 0-691-01049-8.
  3. ^ Barney, Jay; Felin, Teppo (May 2013). "What Are Microfoundations". Academy of Management Perspectives. 27 (2): 138–155. doi:10.5465/amp.2012.0107. JSTOR 43822016. S2CID 154370237.
  4. ^ Locatelli, Giorgio; Greco, Marco; Invernizzi, Diletta Colette; Grimaldi, Michele; Malizia, Stefania (2020-07-11). "What about the people? Micro-foundations of open innovation in megaprojects". International Journal of Project Management. 39 (2): 115–127. doi:10.1016/j.ijproman.2020.06.009. hdl:11311/1204792. ISSN 0263-7863. S2CID 225633977. Archived from the original on 3 July 2020.