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Solving Vincent Carret's Puzzle: A Rebuttal of Carret's Fallacies and Errors

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  • Jean-Marc Ginoux
  • Franck Jovanovic

    (TELUQ - Université Téluq)

Abstract

The present rejoinder aims at rebutting Carret's allegation of mistaken interpretation in our work. We expose mathematical errors in Carret's work, also present in his publications with Assous. Then, and most importantly, we show the unfounded economic consequences that follow from erroneous mathematical assumptions about Frisch's model. We demonstrate that Carret's statements are based on a misunderstanding of Frisch's econometric model and approach. Then, we show that Carret's results are not supported by the demonstration he claims to have made, and that he misrepresents the arguments of some authors, making them say things they never said. In a recent article that gave birth to a mini-symposium, we propose a solution to a controversy about Frisch's work opened 30 years ago by Stefano Zambelli (Ginoux and Jovanovic 2022c). In 1992 and 2007, Zambelli published a numerical analysis of one of the models developed by Frisch in his seminal book chapter "Propagation problems and impulse problems in dynamic economics." In the conclusion of his work, supported by his numerical analysis, Zambelli claimed that Frisch's "rocking horse model is not rocking!" Since then, several authors have taken up this conclusion

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  • Jean-Marc Ginoux & Franck Jovanovic, 2022. "Solving Vincent Carret's Puzzle: A Rebuttal of Carret's Fallacies and Errors," Working Papers hal-03849582, HAL.
    • Handle: RePEc:hal:wpaper:hal-03849582
    Note: View the original document on HAL open archive server: https://univ-orleans.hal.science/hal-03849582
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    References listed on IDEAS

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    1. Michaël Assous & Vincent Carret, 2022. "Modeling Economic Instability," Springer Studies in the History of Economic Thought, Springer, number 978-3-030-90310-7, December.
    2. Dupont-Kieffer, Ariane, 2012. "The Accelerator Principle At The Core Of Frisch’S 1933 Rocking Horse Model," Journal of the History of Economic Thought, Cambridge University Press, vol. 34(4), pages 447-473, December.
    3. Olav Bjerkholt & Ariane Dupont, 2010. "Ragnar Frisch's Conception of Econometrics," History of Political Economy, Duke University Press, vol. 42(1), pages 21-73, Spring.
    4. Velupillai, K. Vela, 1998. "The vintage economist," Journal of Economic Behavior & Organization, Elsevier, vol. 37(1), pages 1-31, September.
    5. Bjerkholt, Olav, 2007. "Ragnar Frisch’s contribution to business cycle analysis," Memorandum 08/2007, Oslo University, Department of Economics.
    6. Muriel Dal-Pont Legrand & Hagemann Harald, 2007. "Business cycles in Juglar and Schumpeter," Post-Print halshs-00454505, HAL.
    7. Dag Kolsrud & Ragnar Nymoen, 2014. "Macroeconomic Stability or Cycles? The Role of the Wage-Price Spiral," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 41-68, June.
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