ReportTitle:
Macrofinance Paradigm: TheSegregation of Economic and Financial Models
Reporter(Institution):
Prof. Jack W. Hou（CaliforniaState University, US）
Time:10:00.am, 24th May,2018
Location:B-201,Building of Economics & Management, Jiulonghu Campus
Abstract:
The first two thirds of the paper is a “walk”down the road ofthe general equilibrium paradigm in terms of economic history of thought,pointingout along the way how economic models have increasingly delegated riskand uncertainty to afootnote, while financial models tend to look at assetvaluation increasingly based on the irrationalexpectations rather than the realeconomy. The final one third is the empirical part of the paper,and I use theword “empirical” very loosely. I discuss how the evolution of economic/financialtheoryhas led to fundamental structural changes in corporate structure andgovernance, and how thishas led to irreconcilable differences between economicand financial models.
