Macroeconometric Modelling for Policy Evaluation and Design
AbstractThe paper reviews recent developments in macroeconomic theory and their implications for econometric modelling and for policy design. The following issues are addressed. 1) The theoretical and practical problems of modelling sequence economies. 2) Problems of evaluating the role of money given the absence of reasonable microfoundations for monetary theory. 3) The implications of the view that macroeconomic models should be viewed as non-cooperative differential games. 4) Identification and estimation of the policy-invariant structure of rational expectations models. 5) Time inconsistency of optimal plans and 6) The welfare economics of stabilization policy and the need to pay much greater attention to market structure if a market failure-based justification for stabilization policy is to be developed.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0013.
Date of creation: Jun 1981
Date of revision:
Publication status: published as Buiter, Willem H. "Macroeconometric Modelling for Policy Evaluation and Design." The Usefulness of Macroeconomic Models, Bank of England, (March 1981) , pp. 15-38.
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