On the performance of the representative agent during out-of-equilibrium dynamics

Zakaria Babutsidze

Economics Bulletin, 2011, vol. 31, issue 1, 874-882

Abstract: This note contributes to the discussion about the representative agent's ability to characterize the collection of agents. We perform two exercises in context of a fairly general environment and show that even if the representative agent is powerful enough to describe the society in equilibrium, she might fail in describing the out-of-equilibrium dynamics of the system. It is established that this feature is not specific to the systems with or without interacting agents.

Keywords: Representative agent; heterogeneity; interaction; out-of-equilibrium dynamics (search for similar items in EconPapers)
JEL-codes: D0 (search for similar items in EconPapers)
Date: 2011-03-17
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Related works:
Working Paper: On the performance of the representative agent during out-of-equilibrium dynamics (2011)
Working Paper: On the performance of the representative agent during out-of-equilibrium dynamics (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-10-00631

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