Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82496
Authors: 
Lindé, Jesper
Year of Publication: 
2000
Series/Report no.: 
Sveriges Riksbank Working Paper Series 113
Abstract: 
In this paper, I try to shed some new light on the puzzle why the Lucas critique, belived to be important by most economists, seems to have received very little empirical support. I use a real business cycle model to examine the properties of the super exogeneity test, which is used to detect the applicability of the Lucas critique in practice. The results suggest that the super exogeneity test is not capable of detecting the relevance of Lucas critique in practice in small samples.
Subjects: 
Lucas critique
Real business cycle model
Super exogeneity test
Taylor rules
Money demand
Consumption function
JEL: 
C22
C52
E41
Document Type: 
Working Paper

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