IDEAS home Printed from https://ideas.repec.org/p/nsr/niesrd/176.html
   My bibliography  Save this paper

Evaluating macroeconomic models of the business cycle

Author

Listed:
  • Dr Garry Young

Abstract

A wide range of different models can be used to analyse the behaviour of the economy over the cycle. While various diagnostic tools are available to discriminate between them, these are rarely conclusive. Consequently poor models survive alongside good ones. This paper develops the use of stochastic simulation techniques as a diagnostic device to assess the overall properties of models. The stochastic properties of the National Institute model are outlined, showing the extent to which it matches the business cycle moments of the UK economy and the persistence of the economic cycle. Its properties are compared with those of theory-based Real Business Cycle models and data-based VAR models. It is shown how structural economic models are needed to quantify the effect of appropriate choice of policy rules on the business cycle.

Suggested Citation

  • Dr Garry Young, 2000. "Evaluating macroeconomic models of the business cycle," National Institute of Economic and Social Research (NIESR) Discussion Papers 176, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:176
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nsr:niesrd:176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library & Information Manager (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.