Macro Accounting and General Equilibrium

Abstract

This paper develops an accounting oriented general equilibrium model that represents macro statistical systems by aggregating journal entries of micro accounting. The aim of the model is integrating microeconomics and macroeconomics by the different way from modern macroeconomics. From a reverse thinking of classical general equilibrium models, the model explores how should preference and expectation of market participants be if the market is always in the equilibrium. An important feature of the model is the rule of symmetry, that is, economic activities of economic entities implies that other economic entities who takes just the opposite economic activities always exist. In other words, the rule requires the existence of economic entities have just the opposite preference and expectation like a mirror copy. The paper discusses aspects of the economy by using this simple rule.The most close literature related to this paper is Exploring General Equilibrium (1995) of Fischer Black. The accounting oriented general equilibrium model attempt to construct Black's full general equilibrium model and extend his consideration.