 The ADAS Model: Two into One Won’t GoRoy H. Grieve
Chapter 6 in Aggregate Demand and Supply, 1998, pp 83-94 from Palgrave Macmillan Abstract: Abstract It has for some time been the almost universal fashion, amongst authors of intermediate macroeconomics textbooks, to employ the aggregate demand and aggregate supply (ADAS) model to explain the determination of aggregate output and the price level. Perusal of a representative selection of such texts reveals that most — all but three out of fifteen surveyed — make use of a version, or versions, of ADAS.1 Recently however dissident voices have been raised in criticism of the propriety of relying on the ADAS construction. Among those who have drawn attention to the inherent inconsistency of the standard model are Rao (1991), Barro and Grilli (1994), Colander (1995, 1996), Nevile and Rao (1996) and Grieve (1996). Colander, for one, does not mince words (1995, p.170): “ADAS does not fulfil the minimum requirement of a model: logical consistency. Its component parts are derived from models that reflect different, and inconsistent models of the economy.” This chapter seeks to set the problem of the ADAS model in the context of the development of macro theory. Keywords: Labour Market; Labour Supply; Price Level; Real Wage; Labour Demand (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-26293-9_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-26293-9_6 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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