Why Does No-One Teach Undergraduate Macroeconomics Using the Dynamic Stochastic General Equilibrium Model?

13 Pages Posted: 16 Jul 2009

See all articles by Paul Turner

Paul Turner

Loughborough University - Department of Economics

Date Written: June 2009

Abstract

This paper argues that it is no surprise that the DSGE model, which has proved so successful in convincing academic economists of its value, has made relatively few inroads into the teaching sphere. The qualities which make it attractive to academics, such as the purity of its assumptions and its sound microeconomic basis, have little resonance with undergraduate students. Instead, the qualities of the neo-Keynesian model, such as its ability to incorporate ‘real-world’ institutional features and the ease with which it can be used to develop higher order skills and applications, prove much more attractive.

JEL Classification: A22, E20

Suggested Citation

Turner, Paul, Why Does No-One Teach Undergraduate Macroeconomics Using the Dynamic Stochastic General Equilibrium Model? (June 2009). Available at SSRN: https://ssrn.com/abstract=1433568 or http://dx.doi.org/10.2139/ssrn.1433568

Paul Turner (Contact Author)

Loughborough University - Department of Economics ( email )

York House
Loughborough LE11 3TU
Great Britain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
167
Abstract Views
946
Rank
341,528
PlumX Metrics