Microeconomics and Macroeconomics: Reductionism versus Emergent Properties

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Microeconomics and Macroeconomics: Reductionism versus Emergent Properties

Both reductionism and emergentism approach to microeconomics and macroeconomics show greater interconnectedness between the two branches. Neoclassical approach to the analysis of macroeconomics find that the field is not just merely related to microeconomics but the later is derived from it. This kind of thinking supports the reductionism idea that microeconomics was primarily derived from macroeconomics. On the other hand, emergentism identifies the properties that result from a system where it is made out of the parts of its elements. This nature of thinking argues that the elements where the new properties are derived are not identical to the resultant subject but bears close relationship (Rosser, 2012).  Emergent theorists argue that it is easy to explain all the properties contained in the emergent subjects as well as showing explicit connectivity to the original element. Micro and macroeconomists are however divided into which approach suitably suits in the explanation of interrelationship between micro and macroeconomics (Woodford, 2009). The hypothesis applied in reductionism is however found to be insufficient to prove a sound case and criticized by some theorists (Anderson, 1972).

Reductionism ideology of proving relationships between the two economics branches is proved through investigation of the market equilibrium. The Keynesian model of macroeconomics is the most widely used model by various economists and theorists in deriving the interrelationships with microeconomics. The centerpiece of this relationship is the equilibrium which upon further investigation brings out the connectivity between the two. In microeconomics, the primary property that is used in attaining the equilibrium is the commodity’s price. Normal equilibrium price in microeconomics signifies…”