Publisher's Synopsis
Aggregation lies at the heart of macroeconomics. The use of such aggregates as capital, investment, labour and even output or GNP presupposes that such constructions have a sound analytic foundation. Hence, the question of the existence of aggregate production functions goes to the foundations of macroeconomic theory and policy. Moreover, it played a central role in the famous "Cambridge versus Cambridge" debate, thought by one side to involve the foundations of neoclassical microeconomics.;In this book, Franklin Fisher settles the question of the conditions for the existence of aggregate production functions. He examines the conditions for approximate aggregation and, through simulation experiments, considers why aggregate production functions appear to work in practice. He also explores related topics involving price aggregation and aggregation in international trade.
