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On the role of small models in macrodynamics

  • Turnovsky, Stephen J.

This paper focuses on the role of small models in macrodynamics. It discusses the insights that I believe these models offer and the extent to which they can address some of the complex issues, such as heterogeneity and interactions among agents that are receiving increasing attention in the literature. I comment on what I view to be the most productive role for numerical simulations, and finally offer some brief comments in defense of the state of modern macroeconomic theory in light of the criticism it has received as a result of the recent financial crisis.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 9 (September)
Pages: 1605-1613

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:9:p:1605-1613
Contact details of provider: Web page: http://www.elsevier.com/locate/jedc

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