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Keynesian Macroeconomics without the LM Curve

Romer, David - 2000

Changes in both the macroeconomy and in macroeconomics suggest that the IS-LM-AS model is no longer the best baseline model of short-run fluctuations for teaching and policy analysis. This paper presents an alternative model that replaces the assumption that the central bank targets the money...

Persistent link: https://www.econbiz.de/10012471315

The Fallacy of the Fiscal Theory of the Price Level

Buiter, Willem H. - 1999

or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and … proponents of the fiscal theory of the price level do not accept the fundamental proposition that the government's intertemporal …. Policy conclusions could be drawn from the fiscal theory of the price level that would be harmful if they influenced the …

Persistent link: https://www.econbiz.de/10012471482

The Public Critique of Welfare Economics : An Exploration

Besley, Timothy - 1999

The welfare economic method for analyzing the case for government intervention is often criticized for ignoring the political determination of policies. While many economists accept the thrust of this critique, exactly when and how political determination interferes with a welfare economic...

Persistent link: https://www.econbiz.de/10012471713

The Perils of the Learning Model For Modeling Endogenous Technological Change

Nordhaus, William D. - 2009

Learning or experience curves are widely used to estimate cost functions in manufacturing modeling. They have recently been introduced in policy models of energy and global warming economics to make the process of technological change endogenous. It is not widely appreciated that this is a...

Persistent link: https://www.econbiz.de/10012464011

New Keynesian Models : Not Yet Useful for Policy Analysis

Chari, V.V. - 2008

Macroeconomists have largely converged on method, model design, reduced-form shocks, and principles of policy advice. Our main disagreements today are about implementing the methodology. Some think New Keynesian models are ready to be used for quarter-to-quarter quantitative policy advice; we do...

Persistent link: https://www.econbiz.de/10012464338

How Structural Are Structural Parameters?

Fernández-Villaverde, Jesús - 2007

This paper studies how stable over time are the so-called "structural parameters" of dynamic stochastic general equilibrium (DSGE) models. To answer this question, we estimate a medium-scale DSGE model with real and nominal rigidities using U.S. data. In our model, we allow for parameter...

Persistent link: https://www.econbiz.de/10012465487

A General Formula for the Optimal Level of Social Insurance

Chetty, Raj - 2005

In an influential paper, Baily (1978) showed that the optimal level of unemployment insurance (UI) in a stylized static model depends on only three parameters: risk aversion, the consumption-smoothing benefit of UI, and the elasticity of unemployment durations with respect to the benefit rate....

Persistent link: https://www.econbiz.de/10012467297

Why You Should Never Use the Hodrick-Prescott Filter

Hamilton, James D. - 2017

Here's why. (1) The HP filter produces series with spurious dynamic relations that have no basis in the underlying data-generating process. (2) Filtered values at the end of the sample are very different from those in the middle, and are also characterized by spurious dynamics. (3) A statistical...

Persistent link: https://www.econbiz.de/10012455252

Congestion on the Information Superhighway : Does Economics Have a Working Papers Problem?

Lusher, Lester; Yang, Winnie; Carrell, Scott E. - National Bureau of Economic Research - 2021

Publishing takes a long time in economics. Consequently, many authors release "working" versions of their papers. Using data on the NBER working paper series, we show that the dissemination of economics research suffers from an overcrowding problem: An increase in the number of weekly released...

Persistent link: https://www.econbiz.de/10012616601

Confirmatory Bias in Health Decisions : Evidence from the MMR-Autism Controversy

Qian, Mengcen - 2020

Since Wakefield et al. (1998), the public was exposed to mixed information surrounding the claim that measles-mumps-rubella vaccine causes autism. A persistent trend to delay the vaccination during 1998-2011 in the US was driven by children of college-educated mothers, suggesting that these...

Persistent link: https://www.econbiz.de/10012479296