IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-02386344.html

Impulses and Propagation Mechanisms in Equilibrium Business Cycles Theories: From Interwar Debates to DSGE “Consensus”

Author

Listed:
  • Hagemann Harald

    (Universität Hohenheim = University of Hohenheim)

Abstract

It is tempting to understand the DSGE (Dynamic Stochastic General Equilibrium) approach as a refinement of earlier contributions, namely Slutsky (1927) and Frisch (1933), and to a lesser extent Hayek, Hicks, and Lutz. By analyzing the debates in these periods, we try to show that the modern tools from which our theories benefit, far from being neutral, have deeply changed the nature of business cycles theories. We identify the reduced role of propagation mechanisms in DSGE models and their consequences for current debates. The overemphasis on the capacity of models to mimic cyclical fluctuations on the one side, and the clear incapacity of these models to explain (even to mimic) large scale crises on the other, are distinct but convergent elements which reveal a deep change in the relationship between the empirical findings (data, stylized facts) and the theory. These elements are deserving more attention from historians of economic thought.

Suggested Citation

  • Hagemann Harald, 2019. "Impulses and Propagation Mechanisms in Equilibrium Business Cycles Theories: From Interwar Debates to DSGE “Consensus”," Working Papers halshs-02386344, HAL.
    • Handle: RePEc:hal:wpaper:halshs-02386344
    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
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Romain Plassard, 2019. "From Disequilibrium to Equilibrium Macroeconomics: Barro and Grossman's Trade-off between Rigor and Realism," GREDEG Working Papers 2019-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Vincent Carret, 2020. "And yet it rocks! Fluctuations and growth in Ragnar Frisch's rocking horse model," Working Papers halshs-02969773, HAL.
    3. Hagemann Harald, 2019. "Impulses and Propagation Mechanisms in Equilibrium Business Cycles Theories: From Interwar Debates to DSGE “Consensus”," Working Papers halshs-02386344, HAL.
    4. Richard Arena, 2019. "Is still to-day the Study of the "Surplus Product" the True Object of Economics?," GREDEG Working Papers 2019-32, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Dongshuang Hou & Aymeric Lardon & Panfei Sun & Genjiu Xu, 2019. "Sharing a Polluted River under Waste Flow Control," GREDEG Working Papers 2019-23, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    6. Thomas Le Texier & Ludovic Ragni, 2019. "Concurrence 'hybride', innovation et régulation : un modèle de duopole," GREDEG Working Papers 2019-29, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    7. Barrales-Ruiz, Jose & Arnim, Rudiger von, 2021. "Endogenous fluctuations in demand and distribution: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 204-220.
    8. Claire Baldin & Ludovic Ragni, 2019. "La conception de l'homme dans la théorie de l'Echange Composite de François Perroux : entre homo economicus vs homo religiosus," Post-Print halshs-02389031, HAL.
    9. Marco Baudino, 2019. "Urbanization and Development: A Spatial Framework of Rural-to-urban Migration," GREDEG Working Papers 2019-12, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    10. Giuseppe Attanasi & Kene Boun My & Nikolaos Georgantzís & Miguel Ginés, 2019. "Strategic Ethics: Altruism without the Other-Regarding Confound," Revue économique, Presses de Sciences-Po, vol. 70(6), pages 967-998.
    11. Richard Arena & Katia Caldari, 2019. "Léon Walras and Alfred Marshall: Microeconomic Rational Choice or Human and Social Nature?," GREDEG Working Papers 2019-33, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    12. Agnès Festré, 2019. "Michael Polanyi' Vision of Economics: Spanning Hayek and Keynes," GREDEG Working Papers 2019-41, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    13. Carret, Vincent, 2021. "Fluctuations and growth in Ragnar Frisch’s rocking horse model," OSF Preprints 69nsg, Center for Open Science.
    14. Alain Raybaut, 2019. "A First French Episode in the Renewal of Nonlinear Theory of Economic Cycles (1978-1985)," GREDEG Working Papers 2019-07, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    15. Jean-Sébastien Lenfant, 2021. "Eugen (Evgeny Evgenievich) Slutsky (1880-1948)," Working Papers hal-03628273, HAL.
    16. Nicolas Brisset & Dorian Jullien, 2019. "Models as Speech Acts: A Restatement and a new Case Study," GREDEG Working Papers 2019-09, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    17. Charlie Joyez, 2019. "Shared Ownership in the International Make or Buy Dilemma," GREDEG Working Papers 2019-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    18. Richard Arena & Ludovic Ragni, 2019. "Nature humaine et choix rationnel : Pareto contre Walras ?," GREDEG Working Papers 2019-06, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    19. Nobuyuki Hanaki, 2020. "Cognitive ability and observed behavior in laboratory experiments: implications for macroeconomic theory," The Japanese Economic Review, Springer, vol. 71(3), pages 355-378, July.
    20. David Colander, 2019. "Complexity, the Evolution of Macroeconomic Thought, and Micro Foundations," GREDEG Working Papers 2019-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    21. Charles Ayoubi & Michele Pezzoni & Fabiana Visentin, 2021. "Does It Pay to Do Novel Science? The Selectivity Patterns in Science Funding," Science and Public Policy, Oxford University Press, vol. 48(5), pages 635-648.
    22. Richard Arena & Katia Caldari, 2019. "Léon Walras and Alfred Marshall : microeconomic rational choice or human and social nature?," Working Papers halshs-02400844, HAL.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:hal:wpaper:halshs-02386344. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.