Economics Department Working Paper Series
Working Paper Number
2005-11
Publication Date
2005
Abstract
Contrary to what has been argued by a number of critics, the AD-AS framework is both internally consistent and in conformity with Keynes’s own analysis. Moreover, the eclectic approach to behavioral foundations allows models in this tradition to take into account aggregation problems as well as evidence from behavioral economics. Unencumbered by the straightjacket of optimizing microfoundations, the approach can provide a useful starting point for the analysis of dynamic macroeconomic interactions. In developing this analysis, the AD-AS approach can draw on insights from the Post Keynesian, neo-Marxian and structuralist traditions, as well as from the burgeoning literature on behavioral economics.
DOI
https://doi.org/10.7275/1069130
Recommended Citation
Krishna, Amitava and Skott, Peter, "Keynesian Theory and the AD-AS Framework: A Reconsideration" (2005). Economics Department Working Paper Series. 47.
https://doi.org/10.7275/1069130