An empirical approach to constructing macroeconomic models.
An empirical approach to constructing macroeconomic models.
Macroeconomic Modeling presents an empirically based approach to the construction of macroeconomic models-the Cowles Commission approach-as a response to the backlash that has taken place since the late 1970s to this methodology. The emphasis in the literature has been on tightly specified theoretical models, which lack realism. In this book, Ray C. Fair develops models to analyze a variety of issues and events in macroeconomics and the US economy, and he explains the econometric techniques needed to estimate those models. Many of the results are either contrary to results from the theoretical models or cannot be examined by the theoretical models because they omit many important features of the economy.
Fair covers a broad range of topics, including inflation and unemployment, the size of wealth effects, the behavior of the Federal Reserve and its effects on the economy, the effects of fiscal policy, Okun's law, and contractions and expansions. Macroeconomic Modeling will appeal equally to graduate students and researchers as well as macroeconomic policy makers.
By:
Ray C. Fair
Imprint: MIT Press
Country of Publication: United States
Dimensions:
Height: 229mm,
Width: 152mm,
Weight: 369g
ISBN: 9780262549844
ISBN 10: 0262549840
Pages: 286
Publication Date: 25 February 2025
Audience:
General/trade
,
ELT Advanced
Format: Paperback
Publisher's Status: Active
1 Part I: Introduction 1 Why This Book? 2 Macro Data 3 The Econometrics 4 Part II: The US Model 4 Specification and Estimation of the US Model 5 Constructed Variables 6 Identities 7 Exogenous Variables 8 Solution 9 Part III: Analysis of the US Model 9 Size of Wealth Effects 10 Size of Fed’s Effect on Output, Unemployment, and Inflation 11 Changes in Fed’s Behavior Since 2008 12 Effects of Inflation Shocks 13 Size of Government Spending Multipliers 14 Okun’s Law 15 Explaining Contractions and Expansions 16 Part IV: Models with Rational Expectations–optional. 17 Part V: Multicountry Econometric Models–optional 18 Part VI: Further Material–optional 19 Appendix 20 References
Ray C. Fair is Professor of Economics at Yale. His research has primarily been in the areas of macroeconomics and econometrics, although he has also done work in finance, voting behavior, and aging in sports.
