The determinants of yield curve dynamics have been thoroughly discussed in finance models. However, little can be said about the macroeconomic factors behind the movements of short- and long-term interest rates as well as the risk compensation demanded by financial investors. By…
The determinants of yield curve dynamics have been thoroughly discussed in finance models. However, little can be said about the macroeconomic factors behind the movements of short- and long-term interest rates as well as the risk compensation demanded by financial investors. By…
This text describes the principles of constructing dynamic macroeconometric models and their use in economic analyses and forecasting. The discription of the econometric methodology has been limited to specific applications of time series analysis.
The authors reconceptualize existing macroeconomics by treating equilibria as statistical distributions, not as fixed points.
The authors reconceptualize existing macroeconomics by treating equilibria as statistical distributions, not as fixed points.
Sound microeconomic foundations for macroeconomics has meant incorporating sophisticated intertemporal optimization schemes into macroeconomic models. The Ramsey model, once meant to be a normative tool for a policy maker, has been turned into a descriptive model for representat…