One of the major issues with the internal logic of neoclassical macro is the handling of credit risk. The problem of credit is acute for Dynamic Stochastic General Equilibrium models because they are allegedly based on “microfoundations.” However, the theoretical problems remain for any aggregated mathematical model. The advantage of heterodox economists is that they do not make a big deal about the alleged internal consistency of their mathematical models, and so they are more willing to hand wave around the issue.
Agreed. I'm assuming you're familiar with the work of Steve Keen? If not, I strongly advise you become familiar with his work as well as the works of other complexity theorists at the Santa Fe Institute. Complex adaptive dynamic systems don't know what "equilibrium" is or general equilibrium analysis. Cheers!
Complex Adaptive Dynamic Social Systems...final answer!
The problem with models like that is the fitting problem, which is the same as agent-based models.
Agreed. I'm assuming you're familiar with the work of Steve Keen? If not, I strongly advise you become familiar with his work as well as the works of other complexity theorists at the Santa Fe Institute. Complex adaptive dynamic systems don't know what "equilibrium" is or general equilibrium analysis. Cheers!
Yes, looked it over before.