Comment on: 'Taxes, benefits, careers, and markets' by Lars Ljungqvist and Thomas J. Sargent

摘要

Macroeconomics has come a long ways since the old Keynesian macro models, which by the way are best exposed in Tom's Black Book (Sargent, 1987). Then there was a complete divorce between Micro and Macro; now all the objects in a model are based on first principles and microfoundations. Tom Sargent has been at the forefront of these changes. Yet, in modern Macroeconomics there is still an element left from the old style Keynesian Macro models, which separates it from Micro: the stand-in household, an infinitely lived representative agent that represents the entire household sector.