ABSTRACT
We will now take up the third strand of the argument for representative agent models described in Chapter 3, that of microfoundations. This discussion will begin in a rather unorthodox manner for a book that professed in Chapter 1 to be solidly neoclassical. In this chapter we will explore the microfoundational arguments of the Austrian economists. The new classical and more conventional arguments for microfoundations will be discussed in the next chapter.
