MACROECONOMIC THEORY – A DYNAMIC GENERAL EQUILIBRIUM APPROACH, M.R. Wickens, Princeton University Press, Princeton, 2008, 496 pages (hardback), ISBN 0691116407
AbstractDynamic general equilibrium modelling is considered as the standard approach in modern macroeconomics. Kydland and Prescott (1982) became famous for their pioneering role in the (neoclassical) real business cycle theory and as such in establishing dynamic general equilibrium modelling in macroeconomic theory. At its core, the approach applies Walrasian general equilibrium theory to aggregate economic phenomena. Being completely microfounded, models that are based on this approach are shielded from the Lucas critique. Soon, New Keynesian macroeconomists Rotemberg and Woodford (1997) took the opportunity and added Keynesian features to the model, thereby putting Keynesian theory on a more solid ground and protecting it against accusations of being ‘ad hoc’. As a result, both the neoclassical and the New Keynesian school of thought are nowadays using the dynamic general equilibrium framework as their workhorses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 40 (2010)
Issue (Month): 1 (March)
Contact details of provider:
Postal: GPO Box 2434, BRISBANE QLD 4001
Web page: http://www.journals.elsevier.com/economic-analysis-and-policy/
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuela Torgler).
If references are entirely missing, you can add them using this form.