Statistical Approach on the Economic System

Masanao AokiAoki, M. was a great scholar who sincerely challenged to exit from the secular world fettered by the representative method of economic modeling. He resolutely focused on a stochastic dynamic system, i.e., cluster dynamicsCluster dynamics with a finite number of heterogenous agents of different typesDifferent types, which could change the methodological regime from the pure homogeneous agents to the actual world. The desired model may be described by partition vectorsPartition vectors with multiple stateMultiple state. Aoki’s model has renovated the traditional restrictive views. In this chapter, by referring to the sole textbook of Masanao Aoki written in Japanese, we will introduce his insightful analytical methods.