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Aggregate Structural Macroeconomic Modelling: A Reconsideration and Defence

Listed author(s):
  • Mark Setterfield

    ()

    (Department of Economics, Trinity College)

  • Shyam Gouri Suresh

    ()

    (Department of Economics, Davidson College)

Aggregate structural macroeconomic modelling (ASMM) is frequently criticized for being ad hoc and justified (if at all) only as a pragmatic expedient. This paper argues instead that ASMM is consistent with the principles of well-established bodies of social theory. Appeal to these principles reveals that aggregate-level analysis of the type exemplified by ASMM is likely necessary and (in some circumstances) certainly sufficient for the successful prosecution of macroeconomic enquiry.

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File URL: http://internet2.trincoll.edu/repec/WorkingPapers2012/WP12-07.pdf
File Function: First version, 2012
Download Restriction: no

Paper provided by Trinity College, Department of Economics in its series Working Papers with number 1207.

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Length: 37 pages
Date of creation: Aug 2012
Handle: RePEc:tri:wpaper:1207
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Web page: http://www.trincoll.edu/Academics/MajorsAndMinors/Economics/Pages/default.aspx

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