A Guide to Frb/Us: A Macroeconomic Model of the United States

Posted: 2 Dec 1996

See all articles by Flint Brayton

Flint Brayton

Government of the United States of America - Macroeconomic and Quantitative Studies Section

Peter A. Tinsley

George Washington University; Birkbeck College, Univ. of London

Date Written: October 1996

Abstract

FRB/US is a large-scale quarterly econometric model of the U.S. economy, developed to replace the MPS model. Most behavioral equations are based on specifications of optimizing behavior containing explicit expectations of firms, households, and financial markets. Although expectations are explicit, the empirical fits of the structural descriptions of macroeconomic behavior are comparable to those of reduced-form time series models. In most instances, tests do not reject overidentifying restrictions of rational expectations or the hypothesis of serially independent residuals. As modeled, private sector expectations of policy constitute a major transmission channel of monetary policy.

JEL Classification: E3, E5

Suggested Citation

Brayton, Flint and Tinsley, Peter A., A Guide to Frb/Us: A Macroeconomic Model of the United States (October 1996). FEDS Paper No. 96-42. Available at SSRN: https://ssrn.com/abstract=3553

Flint Brayton

Government of the United States of America - Macroeconomic and Quantitative Studies Section ( email )

20th and C Streets, NW
Washington, DC 20551
United States

Peter A. Tinsley (Contact Author)

George Washington University ( email )

710 21st Street NW
Washington, DC 20052
United States

Birkbeck College, Univ. of London

Malet Street
London, WC1E 7HX
United Kingdom

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