Talk:AD–AS model

Untitled
Small error I found: In the shifts of AD curve. The curve shifts right when there is a decrease in nominal money supply, not the other way around. — Preceding unsigned comment added by 89.71.136.232 (talk) 21:45, 19 January 2013 (UTC)

What needs to be done
First of all, I dared to upgrade this articles importance. This is one of the most widely recognized economic models, it deserves more than mid! Second, whoever wrote it, thanks for the equations, but please include a legend telling which variable means what. Every textbook uses different letters, so it's not universally understandable. Third, source the equations.

--90.136.23.0 (talk) 00:09, 15 June 2008 (UTC)

AS-AS equations
Instead of having equations that have no legend on them, how about we use the AD AS relation in a general form.

AD: $$Y=Y(\tfrac{M}{P},G,T)$$

AS: $$P=P^e(1-\mu)F(1- \tfrac{Y}{L},z)$$

Where Y is Output, $$\tfrac{m}{p}$$ is Real Money Stock, G is Government spending, T is Taxes, P is Price level, Pe is Price level expected, $$\mu$$ is the wage markup, L is Labor, and z is a wage catch all variable. Crimsonedge34 (talk) 19:25, 18 September 2009 (UTC)

Look out for possible copyright violations in this article
This article has been found to be edited by students of the India Education Program project as part of their (still ongoing) course-work. Unfortunately, many of the edits in this program so far have been identified as plain copy-jobs from books and online resources and therefore had to be reverted. See the India Education Program talk page for details. In order to maintain the WP standards and policies, let's all have a careful eye on this and other related articles to ensure that no material violating copyrights remains in here. --Matthiaspaul (talk) 12:29, 1 November 2011 (UTC)

Dr. Grieve's comment on this article
Dr. Grieve has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"The present Wikipedia entry on the ADAS model is quite inadequate. It fails to place the model properly in context. For one thing, it describes the model as based on the thinking of Keynes, whereas the conception which informs it is much closer to that of Professor Pigou, whose work was the target of Keynes's attack in the General Theory. For another, the entry completely ignores the fact that the ADAS model is widely criticised as being an incoherent attempt to combine two quite different and incompatible macroeconomic theories in one construction: the curves AD and AS are not, as they purport to be, demand and supply schedules, but "aggregate equilibrium curves" which each show output (not demand and supply) as a function of the price level. There is a need to warn readers of the suspect nature of this construction.

https://drive.google.com/file/d/0B8-wWhGFpGYCRFBVbFJ6bnRNQVU/view?usp=sharing"

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Grieve has expertise on the topic of this article, since he has published relevant scholarly research:


 * Reference : Roy Grieve, 2009. "THE TEXT BOOK BLACK MAGIC or how to make the Keynes theory disappear," Working Papers 0911, University of Strathclyde Business School, Department of Economics.

ExpertIdeasBot (talk) 17:28, 27 September 2016 (UTC)

Hi,

This comment isn't about the technical content of this entry. It's all about history of economic thought.

I'd like to underline the fact that neither Joan ROBINSON nor any post-keynesian theorist has ever used AD-AS models.

The statement that follows is, then, probably wrong : "It is one of the primary simplified representations (...) and is used by a broad array of economists, from libertarian (...) to Post-Keynesian supporters of economic interventionism, such as Joan Robinson."

There is a misunderstanding here.

Four schools of thought derived from Keyne's work :

- those who are generally simply called "keynesians" like John HICKS or Paul SAMUELSON. They are responsible for what is called the neoclassical synthesis as they tried to formulate some Keynes' insights into a more neoclassical framework.

- those who are generally called "Neo-keynesians" (at least this is the case in France where I'm writing from) like Clower, Patinkin, Leijonhufvud and french theorists like Jean-Pascal BENASSY and Edmond MALINVAUD. This current was sometimes called "french economics" in the US (during the 70s and 80s). Those theorists worked mainly on models which tried to catch disequilibrium phenomenon from a non-walrasian perspective. It was also an attempt to derive "keynesian phenomenon" (like massive unemployment) using microeconomics tools.

- those who are now called New Keynesians like Paul KRUGMAN or Joseph STIGLITZ among all. Those theorists are using the same tools as the New Classics (BARRO, KYDLAND, LUCAS etc...) do but they derive different conclusions about whether a state should or shoudn't intervene to regulate the market.

- and finally those who are called post-keynesians, which primary property is that they reject the neoclassical framework and its tools. Among them are Joan ROBINSON, Nicholas KALDOR, one would mention Michal KALECKI (although he "discovered" some of Keynes insights at the same time the latter did) and many others. Those theorists have never based their work on anything such the AD-AS model. — Preceding unsigned comment added by 165.225.76.189 (talk) 16:06, 26 June 2019 (UTC)

India Education Program course assignment
This article was the subject of an educational assignment at Symbiosis School of Economics supported by Wikipedia Ambassadors through the India Education Program&#32;during the 2011 Q3 term.&#32;Further details are available on the course page.

The above message was substituted from by PrimeBOT (talk) on 20:08, 1 February 2023 (UTC)

In need of a rewrite
I believe the current text needs a thorough rewrite. Most of the text is unsourced, there are only two references in the whole article, and the contents and terminology are partly obsolete, e.g. the more recent emphasis in textbooks of dynamic model versions of the AD-AS model family with inflation instead of price levels directly addressed in the model is not covered. Also there should be some historical details on the origin and development of the model. Økonom (talk) 10:02, 26 November 2023 (UTC)


 * I have now changed and enlarged the text accordingly. Økonom (talk) 08:37, 26 December 2023 (UTC)