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Zakaria Babutsidze
''On the performance of the representative agent during out-of-equilibrium dynamics''
( 2011, Vol. 31 No.1 )
This note contributes to the discussion about the representative agent's ability to characterize the collection of agents. We perform two exercises in context of a fairly general environment and show that even if the representative agent is powerful enough to describe the society in equilibrium, she might fail in describing the out-of-equilibrium dynamics of the system. It is established that this feature is not specific to the systems with or without interacting agents.
Keywords: Representative agent, heterogeneity, interaction, out-of-equilibrium dynamics
JEL: D0 - Microeconomics: General
Manuscript Received : Oct 17 2010 Manuscript Accepted : Mar 17 2011

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