An Econometric Model of the US Economy: Structural Analysis in 56 Equations - Softcover

Heim, John J.

 
9783319844602: An Econometric Model of the US Economy: Structural Analysis in 56 Equations
Softcover
ISBN 10: 3319844601 ISBN 13: 9783319844602
Publisher: Palgrave Macmillan, 2018

Synopsis

This book explores the US economy from 1960 to 2010 using a more Keynsian, Cowles model approach, which the author argues has substantial advantages over the vector autoregression (VAR) and dynamic stochastic general equilibrium (DSGE) models used almost exclusively today. Heim presents a robust argument in favor of the Cowles model as an answer to the pressing, unresolved methodological question of how to accurately model the macroeconomy so that policymakers can reliably use these models to assist their decision making. Thirty-eight behavioral equations, describing determinants of variables such as consumption, taxes, and government spending, are connected by eighteen identities to construct a comprehensive model of the real US economy that Heim then tests across four different time periods to ensure that results are consistent. This comprehensive demonstration of the value of a long-ignored model provides overwhelming evidence that the more Keynesian (Cowles) structural models outperform VAR and DSGE, and therefore should be the models of choice in future macroeconomic studies.  

  

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About the Author

John J. Heim is Visiting Professor at University of Albany-SUNY, and retired Clinical Professor of Economics at Rensselaer Polytechnic Institute, both in New York, USA.

From the Back Cover

This book explores the US economy from 1960 to 2010 using a more Keynsian, Cowles model approach, which the author argues has substantial advantages over the vector autoregression (VAR) and dynamic stochastic general equilibrium (DSGE) models used almost exclusively today. Heim presents a robust argument in favor of the Cowles model as an answer to the pressing, unresolved methodological question of how to accurately model the macroeconomy so that policymakers can reliably use these models to assist their decision making. Thirty-eight behavioral equations, describing determinants of variables such as consumption, taxes, and government spending, are connected by eighteen identities to construct a comprehensive model of the real US economy that Heim then tests across four different time periods to ensure that results are consistent. This comprehensive demonstration of the value of a long-ignored model provides overwhelming evidence that the more Keynesian (Cowles) structural models outperform VAR and DSGE, and therefore should be the models of choice in future macroeconomic studies.  



"About this title" may belong to another edition of this title.

Publisher
Palgrave Macmillan
Publication date
2018
Language
English
ISBN 10 
3319844601
ISBN 13 
9783319844602
Binding
Paperback
Number of pages
490

Other Popular Editions of the Same Title

9783319506807: An Econometric Model of the US Economy: Structural Analysis in 56 Equations

Featured Edition

ISBN 10:  3319506803 ISBN 13:  9783319506807
Publisher: Palgrave Macmillan, 2017
Hardcover