Rational Commitment: A Foundation for Macroeconomics

by Professor of Economics Brendan O'Flaherty

While Keynesian models of macroeconomics are not grounded in individual rationality, market-clearing models in the tradition of Walras cannot explain how workers consistently fail to sell all the labor they want to sell. The author develops a notion of rationality that shows how both Walrasian and Keynesian results can be derived from a single foundation in game theory. 230 pages.

Paperback

First published January 31, 1986