The scope and methodology of economic and financial asymmetries

George Alogoskoufis, Anastasios Malliaris and Thanasis Stengos

The Journal of Economic Asymmetries, 2023, vol. 27, issue C

Abstract: This paper focuses on economic and financial asymmetries by addressing methodological issues related to the meaning of economic asymmetries and how such asymmetries arise in markets, general equilibrium modeling and in national and global economies. The methodology of modeling asymmetric information began with Akerlof's celebrated model of “lemons” and while these asymmetries were quickly adopted in microeconomics, macroeconomics, business cycles and related areas, economic policies adapted the concept of asymmetries to highlight the importance of unequal magnitudes of responses among economic and financial variables. We discuss numerous topics that illustrate the large scope of economic and financial asymmetries in actual economies and their modeling to establish their methodological centrality in economic analysis and policy.

Keywords: Asymmetric information; Adverse selection; Business cycles; Economic asymmetries; Financial instability (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:27:y:2023:i:c:s1703494923000099

DOI: 10.1016/j.jeca.2023.e00297

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