Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46410 
Year of Publication: 
2011
Series/Report no.: 
CESifo Working Paper No. 3447
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Academic macroeconomics and the research department of central banks have come to be dominated by Dynamic, Stochastic, General Equilibrium (DSGE) models based on microfoundations of optimising representative agents with rational expectations. We argue that the dominance of this particular sort of DSGE and the resistance of some in the profession to alternatives has become a straitjacket that restricts empirical and theoretical experimentation and inhibits innovation and that the profession should embrace a more flexible approach to macroeconometric modelling. We describe one possible approach.
Subjects: 
macroeconometric models
DSGE
VARs
long run theory
JEL: 
I20
D72
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.