Structural Macro-Econometric Modelling in a Policy Environment
39 Pages Posted: 17 Feb 2010
Date Written: February 16, 2010
In this paper we review the evolution of macroeconomic modelling in a policy environment that took place over the past sixty years. We identify and characterize four generations of macro models. Particular attention is paid to the fourth generation - dynamic stochastic general equilibrium models. We discuss some of the problems in how these models are implemented and quantified.
Keywords: history of macroeconomic modeling, policy oriented models, structural model evaluation, DSGE models
JEL Classification: B16, C50
Suggested Citation: Suggested Citation