Macroeconomics and the Real World Volume 1: Econometric Techniques and Macroeconomics

by Backhouse, Roger E.; Salanti, Andrea

• ISBN13: 9780198297956
• ISBN10: 0198297955
• Format: Hardcover
• Copyright: 2001-02-01
• Publisher: Oxford University Press

Summary

Since the middle of the twentieth century, economists have invested great resources into using statistical evidence to relate macroeconomic theories to the real world, and many new econometric techniques have been employed. In these two volumes, a distinguished group of economic theorists,econometricians, and economic methodologists examine how evidence has been used and how it should be used to understand the real world.Volume 1 focuses on the contribution of econometric techniques to understanding the macroeconomic world. It covers the use of evidence to understand the business cycle, the operation of monetary policy, and economic growth. A further section offers assessments of the overall impact of recenteconometric techniques such as cointegration and unit roots.Volume 2 focuses on the labour market and economic policy, with sections covering the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents (in both the USA and the EU).These volumes will be valuable to advanced undergraduates, graduate students, and practitioners for their clear presentation of opposing perspectives on macroeconomics and how evidence should be used. The chapters are complemented by discussion sections revealing the perspectives of othercontributors on the methodological issues raised.

Table of Contents

Introduction to volume 1	1	(20)
Roger E. Backhouse
Andrea Salanti
PART I: BUSINESS CYCLES	21	(62)
Knowing the cycle	23	(20)
Don Harding
Adrian Pagan
Fiscal shocks in an efficiency wage model	43	(18)
Craig Burnside
Martin Eichenbaum
Jonas D. M. Fisher
The return of business cycles	61	(8)
James E. Hartley
Business cycles: general discussion	69	(14)
PART II: MONETARY POLICY	83	(82)
Does money determine UK inflation over the long run?	85	(30)
David F. Hendry
Recent developments in monetary policy analysis: the roles of theory and evidence	115	(26)
Bennett T. McCallum
Explanatory strategies for monetary policy analysis	141	(14)
Mary S. Morgan
Monetary policy: general discussion	155	(10)
PART III: THE INFLUENCE OF RECENT DEVELOPMENTS IN ECONOMETRIC TECHNIQUES	165	(82)
Models and relations in economics and econometrics	167	(32)
Katarina Juselius
Unit roots and all that: the impact of time-series methods on macroeconomics	199	(20)
Ron P. Smith
Models all the way down	219	(6)
Kevin D. Hoover
New econometric techniques and macroeconomics	225	(12)
Carlo Favero
Econometric techniques: general discussion	237	(10)
PART IV: GROWTH	247	(28)
Econometric analysis and the study of economic growth: a sceptical perspective	249	(14)
Steven N. Durlauf
Growth models and the explanation of the forces behind development processes	263	(12)
Paolo Sylos Labini
Why so much scepticism about growth theory?	275
Andrea Salanti