Showing 1 - 10 of 7,094
conducting analysis in a macroeconomic model that is designed to respect both neoclassical theory and empirical regularities …
Persistent link: https://www.econbiz.de/10012471031
This paper uses stochastic simulation and my U.S. econometric model to examine the optimal choice of monetary policy instruments. Are the variances, covariances, and parameters in the model such as to favor one instrument over the other, in particular the interest rate over the money supply? The...
Persistent link: https://www.econbiz.de/10012476919
In 1944 Franco Modigliani published a famous article summarizing the Keynesian model; in 1963 he extended the 1944 framework. This paper,written for a conference in honor of Modigliani, asks how the earlier papers would be modified in the light of recent developments in macroeconomics. The...
Persistent link: https://www.econbiz.de/10012477280
This paper is an expository review of recently developed techniques that are designed to evaluate macroeconomic policy using econometric models ; The exposition focuses on dynamic stochastic models with rational expectations and with discrete time. The method of undetermined coefficients is used...
Persistent link: https://www.econbiz.de/10012477601
This paper focuses on the problem of formulating an analysis of economic policy that is consistent with rational expectations. Cooley, LeRoy,and Raymon show that the Lucas and Sargent strategy for econometric policy evaluation is itself vulnerable to the logic of the Lucas critique. The present...
Persistent link: https://www.econbiz.de/10012477709
This paper is a review of rational expectations models used in macroeconomic research. The purpose is to examine in some detail the differences between the models, the advantages and disadvantages of alternative models the empirical support for the models and their policy implications. The main...
Persistent link: https://www.econbiz.de/10012477873
The paper reviews recent developments in macroeconomic theory and their implications for econometric modelling and for …. 2) Problems of evaluating the role of money given the absence of reasonable microfoundations for monetary theory. 3) The …
Persistent link: https://www.econbiz.de/10012478436
The message of this paper can be summed up in two words: inventories matter. They matter empirically, in the sense that inventory developments are of major importance in the propagation of business cycles; and they matter theoretically, in the sense that recognition of their existence changes...
Persistent link: https://www.econbiz.de/10012478621
An otherwise conventional Keynesian macro model is modified to include inventories of final goods by (1) drawing a distinction between production and final sales, and (2) allowing for a negative effect of the level of inventories on production. Two models are presented: one in which the labor...
Persistent link: https://www.econbiz.de/10012478685
The recent literature on rational expectations in macroeconomic theory is surveyed here with the objective of … expectations. The paper begins with a brief discussion of the theory of martingales as it has been applied to microeconomic theory …
Persistent link: https://www.econbiz.de/10012479033