DSGE And Beyond – Computable And Constructive Challenges
AbstractThe genesis and the path towards what has come to be called the DSGE model is traced, from its origins in the Arrow-Debreu General Equilibrium model (ADGE), via Scarf's Computable General Equilibrium model (CGE) and its applied version as Applied Computable General Equilibrium model (ACGE), to its ostensible dynamization as a Recursive Competitive Equilibrium (RCE). An outline of a similar nature, albeit very briefly, of the development and structure of Agent-Based Economics (ABE) is also included. It is shown that these transformations of the ADGE model are computably and constructively untenable. Suggestions for going 'beyond DSGE and ABE' are, then, outlined on the basis of a framework that is underpinned -from the outset- by computability and constructivity consideration
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Bibliographic InfoPaper provided by ASSRU - Algorithmic Social Science Research Unit in its series ASSRU Discussion Papers with number 1122.
Date of creation: 2011
Date of revision:
Computable General Equilibrium; Dynamic Stochastic General Equilibrium; Computability; Constructivity; Classical Behavioural Economics;
Find related papers by JEL classification:
- C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-CBA-2011-07-21 (Central Banking)
- NEP-CMP-2011-07-21 (Computational Economics)
- NEP-DGE-2011-07-21 (Dynamic General Equilibrium)
- NEP-HME-2011-07-21 (Heterodox Microeconomics)
- NEP-HPE-2011-07-21 (History & Philosophy of Economics)
- NEP-ORE-2011-07-21 (Operations Research)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- DSGE And Beyond â Computable And Constructive Challenges
by Christian Zimmermann in NEP-DGE blog on 2011-07-25 20:20:39
- DSGE And Beyond Computable And Constructive Challenges
by Christian Zimmermann in NEP-DGE blog on 2011-07-25 20:20:39
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Economics Discussion Papers
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- Chen, Shu-Heng & Chang, Chia-Ling & Wen, Ming-Chang, 2014. "Social networks and macroeconomic stability," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 8(16), pages 1-40.
- Chen, Shu-Heng & Chang, Chia-Ling & Tseng, Yi-Heng, 2014. "Social networks, social interaction and macroeconomic dynamics: How much could Ernst Ising help DSGE?," Research in International Business and Finance, Elsevier, vol. 30(C), pages 312-335.
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