Introduction to the volume by Alan Kirman -- Part I Finitary methods of statistical equilibrium -- 1.Enrico Scalas, University of Sussex, “Continuum and thermodynamic limits for a wealth -- distribution stylised model” -- 2. Doyn Farmer Oxford University, Mauro Galegatti, Corrado di Guilumi...

Introduction -- Why Are Standard Micro-foundations Wrong? -- Statistical Physics and Macroeconomics -- Stochastic Macro-Equilibrium: A Micro-foundation of Keynesian Economics -- The Business Cycle: The Role of Aggregate Demand -- Demand Saturation and Economic Growth ―― Where Keynes and...

We explore what causes business cycles by analyzing the Japanese industrial production data. The methods used are spectral analysis and factor analysis. Using the random matrix theory, we show that two largest eigenvalues are significant. Taking advantage of the information revealed by...