Analyses in Macroeconomic Modelling

by Hallett, Andrew Hughes; McAdam, Peter; Hallett, A. J. Hughes

• ISBN13: 9780792385981
• ISBN10: 0792385985
• Format: Hardcover
• Copyright: 1999-09-01
• Publisher: Kluwer Academic Pub

Summary

Macroeconomic Modelling has undergone radical changes in the last few years. There has been considerable innovation in developing robust solution techniques for the new breed of increasingly complex models. Similarly there has been a growing consensus on their long run and dynamic properties, as well as much development on existing themes such as modelling expectations and policy rules. This edited volume focuses on those areas which have undergone the most significant and imaginative developments and brings together the very best of modelling practice. We include specific sections on (I) Solving Large Macroeconomic Models, (II) Rational Expectations and Learning Approaches, (III) Macro Dynamics, and (IV) Long Run and Closures. All of the contributions offer new research whilst putting their developments firmly in context and as such will influence much future research in the area. It will be an invaluable text for those in policy institutions as well as academics and advanced students in the fields of economics, mathematics, business and government. Our contributors include those working in central banks, the IMF, European Commission and established academics.

Author Biography

Gary S. Anderson: Federal Reserve Board of Governors Andrew J. Hughes Hallett: University of Strathclyde Michel Juillard: University Paris 8 and CEPREMAP Douglas Laxton: International Monetary Fund Peter McAdam: University of Kent at Canterbury Pierre Malgrange: CEPREMAP Scott Moss: Manchester Metropolitan University Werner Roeger: European Commission Steven Symansky: International Monetary Fund Jan in't Veld: European Commission Stephen Hall: Imperial College of Science Technology and Medicine Sean Holly: University of Cambridge David A Kendrick: University of Texas Coung Le Van: CEPREMAP Warwick McKibbin: Australian National University and the Brookings Institution P. Ruben Mercado: University of Texas Hope Pioro: Bank of Canada Esther-Mirjam Sent: University of Notre Dame Paul Turner: University of Sheffield

Table of Contents

List of Contributors	vii
PART ONE: SOLUTION METHODS
Solution Methods and Non-Linear Forward-Looking Models	3	(28)
Michel Juillard
Douglas Laxton
Peter McAdam
Hope Pioro
From Here to Eternity: The Robustness of Model Solutions to Imperfect Starting Values	31	(26)
Peter McAdam
Andrew Hughes Hallett
Accelerating Non Linear Perfect Foresight Model Solution by Exploiting the Steady State Linearization	57	(32)
Gary S. Anderson
PART TWO: RATIONAL EXPECTATIONS AND LEARNING
Modifying the Rational Expectations Assumption in a Large World Model	89	(26)
Stephen Hall
Steven Symansky
Boundedly versus Procedurally Rational Expectations	115	(32)
Scott Moss
Esther-Miriam Sent
Instrument Rules, Inflation Forecast Rules and Optimal Control Rules when Expectations are Rational	147	(22)
Sean Holly
Paul Turner
PART THREE: MACRODYNAMICS
Asymptotic Hierarchies in an Economic Model	169	(10)
Cuong Le Van
Pierre Malgrange
Computational Methods for Macro Policy Analysis: Hall and Taylor's Models in DUALI	179	(28)
P. Ruben Mercado
David A. Kendrick
The Dynamical Analysis of Forward-Looking Models	207	(20)
Michel Juillard
PART FOUR: LONG RUN AND CLOSURES IN MACRO MODELS
The Long Run in Macro Models: A Guide	227	(24)
Peter McAdam
The Sensitivity of Solutions to Terminal Conditions: Simulating Permanent Shocks with QUEST II	251	(22)
Werner Roeger
Jan in't Veld
Solving Large Scale Models Under Alternative Policy Closures: the MSG2 Multi-Country Model	273	(20)
Warwick J. McKibbin
Subject Index	293	(4)
Author Index	297