We propose a simulation-based procedure for evaluating approximation accuracy of numerical solutions of general equilibrium models with heterogeneous agents. We measure the approximation accuracy by the magnitude of the welfare loss suffered by agents from following sub-optimal policies. Our...

The purpose of this paper is to present an approach with regard to the dynamic process of the general equilibrium during the business cycle fluctuations following monetary and fiscal interventions, which, I think, could contribute to bridging the differences between the different schools of...

In the physical world the "identity" of something is taken generally as a given; an apple is an apple; this apple is this apple. When dealing with planetary structure and extension into space, however, the problem of the planet's "identity" in the surrounding cosmos is writ large. What does a...

This set of three volumes argues that the mind – human consciousness – may be measured by considering mathematically the aggregate of that consciousness, i.e. social history. From this beginning theme of discussion three questions must arise. 1. How might this measurement be made? 2. Of what...

Most of the theoretical work in the news shock literature abstracts away from structural explanations, assuming instead that news is a pure signal giving agents advance notice that aggregate technology will undergo exogenous change at some future point. This paper proposes that a surprise...

This is a short book for students who have taken an introductory course in macroeconomics. The book contains a chapter on each of the major competing macroeconomic theories - Keynesian, Monetarist, real business cycle, and Austrian. Then the book presents macroeconomic data on five episodes in...

New Keynesian models have been criticised on the grounds that they require implausibly large price shocks to explain inflation. Bill, Klenow and Malin (2012) show that, while these shocks are needed to reduce the excessive inflation persistence generated by the models, they give rise to...

How can information on financial conditions be used to better understand macroeconomic developments and improve macroeconomic projections? We investigate this question for France by constructing country-specific financial conditions indices (FCIs) that are tailored to movements in GDP,...