The representative agent has long been a central device in modern macroeconomics, providing a simplification of economic behaviour by collapsing the diverse decisions of millions of individuals into the choices of a single “stand-in” actor. Its roots lie in neoclassical economics, where general equilibrium theory required tractable models of consumer and producer behaviour. By assuming a single household and a single firm, theorists could impose rational optimisation and equilibrium conditions without the complexities of heterogeneous agents and institutions. This abstraction gained prominence in the postwar era, particularly through the development of dynamic stochastic general equilibrium (DSGE) models, which crystallised around the representative agent as their core behavioural assumption.
Read MoreI’ve been sitting on this project for a while, but I’m finally ready to bring it above the fold. I’ve long wanted a straightforward overview of global debt levels—both public and private—and an easy way to compare them across countries, alongside their respective external dynamics. This is essential material for macro investors and researchers, yet it’s rare to find all the relevant information compiled in one place. The AS global debt chartbook is a first attempt at this. Like the LEI Chartbook, this project runs on Python code generated and compiled with the help of my trusty OpenAI assistant, with a few manual adjustments along the way. At the moment, it draws data from an Excel spreadsheet, but integrating APIs should be relatively straightforward down the line.
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