Barbie, Martin; Hagedorn, Marcus; Kaul, Ashok - In: Topics in Macroeconomics 4 (2004) 1, pp. 1207-1207
In a seminal contribution Abel, Mankiw, Summers, and Zeckhauser (1989) show that from an aggregate dynamic perspective the US economy is Pareto efficient. We argue that, when applying their test, they implicitly make strong assumptions about the economy's future behavior. We show how time series...