The Cowles Commission Approach, Real Business Cycle Theories, and New Keynesian Economics / Ray C. Fair.

By:

Fair, Ray C

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w3990.Publication details: Cambridge, Mass. National Bureau of Economic Research 1992.Description: 1 online resource: illustrations (black and white)Subject(s):

E10 - General

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: The Cowles Commission approach is reviewed and compared to the approaches of real business cycle (RBC) theorists and new Keynesian economists. It is argued that RBC models are not tested in a serious enough way and that the new Keynesian literature is not empirical enough for testing even to be a serious possibility. Macroeconomics seems to be moving away from its traditional empirical basis, which is sad. This paper argues for returning to the path that was abandoned by most macroeconomists around 1970, namely the specification and testing of structural macroeconometric models.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w3990 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w3987 The Consequences and Costs of Maternal Substance Abuse in New York City /	nber w3988 Forward Into the Past: Productivity Retrogression in the Electric Generating Industry /	nber w3989 Intertemporal Asset Pricing Without Consumption Data /	nber w3990 The Cowles Commission Approach, Real Business Cycle Theories, and New Keynesian Economics /	nber w3991 Wage Effects of A U.S. - Mexican Free Trade Agreement /	nber w3992 Dynamic Efficiency, the Riskless Rate, and Debt Ponzi Games Under Uncertainty /	nber w3993 Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations /	Next

February 1992.

The Cowles Commission approach is reviewed and compared to the approaches of real business cycle (RBC) theorists and new Keynesian economists. It is argued that RBC models are not tested in a serious enough way and that the new Keynesian literature is not empirical enough for testing even to be a serious possibility. Macroeconomics seems to be moving away from its traditional empirical basis, which is sad. This paper argues for returning to the path that was abandoned by most macroeconomists around 1970, namely the specification and testing of structural macroeconometric models.