This paper surveys and motivates the reasons for incorporating explicit long run of supply features into applied estimated macro economic models. It defines some basic stability conditions for such models and illustrates elements of long run considerations with reference to a small (22 equation)...

This paper considers approaches to considering the validity of the overall structure of macro-econometric models - specifically, the Area Wide Model of the European Central Bank. By structure, we refer to the dynamic (business-cycle) and steady-state features that the model purports to capture....