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Keynesian Theory and the AD-AS Framework: A Reconsideration
Economics Department Working Paper Series
  • Amitava Krishna
  • Peter Skott, University of Massachusetts - Amherst
Working Paper Number
2005-11
Publication Date
2005
Abstract

Contrary to what has been argued by a number of critics, the AD-AS framework is both internally consistent and in conformity with Keynes’s own analysis. Moreover, the eclectic approach to behavioral foundations allows models in this tradition to take into account aggregation problems as well as evidence from behavioral economics. Unencumbered by the straightjacket of optimizing microfoundations, the approach can provide a useful starting point for the analysis of dynamic macroeconomic interactions. In developing this analysis, the AD-AS approach can draw on insights from the Post Keynesian, neo-Marxian and structuralist traditions, as well as from the burgeoning literature on behavioral economics.

Disciplines
DOI
https://doi.org/10.7275/1069130
Citation Information
Amitava Krishna and Peter Skott. "Keynesian Theory and the AD-AS Framework: A Reconsideration" (2005)
Available at: http://works.bepress.com/peter_skott/8/