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Title:Economists, incentives, judgment, and the European CVAR approach to macroeconometrics PDF Logo
Authors:Colander, David C.
Issue Date:2009
Citation:[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 3 [Issue:] 2009-9 [Pages:] 1-21 [DOI/URN:] doi:10.5018/economics-ejournal.ja.2009-9
Series/Report no.:economics - The Open-Access, Open-Assessment E-Journal 2009-9
Abstract:This paper argues that the DSGE approach to macroeconometrics is the dominant approach because it meets the institutional needs of the replicator dynamics of the profession, not because it is necessarily the best way to do macroeconometrics. It further argues that this 'DSGE theory-first' approach is inconsistent with the historical approach that economists have advocated in the past and that the alternative European CVAR approach is much more consistent with economist's historically used methodology, correctly understood. However, because the European CVAR approach requires explicit researcher judgment, it does not do well in the replicator dynamics of the profession. The paper concludes with the suggestion that there should be an increase in dialog between the two approaches.
Subjects:Methodology
macroeconometrics
general to specific
DSGE
VAR
judgment
incentives
JEL:B4
Persistent Identifier of the first edition:doi:10.5018/economics-ejournal.ja.2009-9
URL of the first edition:http://www.economics-ejournal.org/economics/journalarticles/2009-9
Creative Commons License:http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type:Article
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles

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