Causal and Stochastic Elements in Business Cycles: An Essential Extension of Macroeconomics Leading to Improved Predictions of Data (Lecture Notes in Economics and Mathematical Systems)

A critical examination of The prevailing orthodoxy according to which all macroeconomic theory should be reducible to microeconomics. The book provides a mathematical extension of the Lucas theory to allow for the effects of creation of knowledge upon economic development so as to improve the prediction of business cycle data.