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Structural macro-econometric modelling in a policy environment

  • Martin Fukac
  • Adrian Pagan

In this paper we review the evolution of macroeconomic modelling in a policy environment that took place over the past sixty years. We identify and characterise four generations of macro models. Particular attention is paid to the fourth generation -- dynamic stochastic general equilibrium models. We discuss some of the problems in how these models are implemented and quantified.

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File URL: http://www.kansascityfed.org/PUBLICAT/RESWKPAP/PDF/RWP10-08.pdf
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Paper provided by Federal Reserve Bank of Kansas City in its series Research Working Paper with number RWP 10-08.

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Date of creation: 2010
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Handle: RePEc:fip:fedkrw:rwp10-08
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