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Natural Concepts in Macroeconomics

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  • Ray Fair

Abstract

Ragnar Frisch proposed in 1936 a procedure for estimating natural variable values by modifying what are now called structural macroeconometric models. This paper shows that Frisch's procedure can be used to illuminate natural concepts using today's models. The procedure also forces one to be precise regarding the assumptions used in moving from a short-run model to a medium-run or long-run model.

Suggested Citation

  • Ray Fair, 2005. "Natural Concepts in Macroeconomics," Yale School of Management Working Papers amz2527, Yale School of Management, revised 01 Jul 2005.
    • Handle: RePEc:ysm:wpaper:amz2527
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    File URL: https://repec.som.yale.edu/icfpub/publications/2527.pdf
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    References listed on IDEAS

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    Keywords

    equilibrium; natural concepts;

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