Macroeconomic theory

Real Macroeconomic Theory

Notes on Macroeconomic Theory

Real Macroeconomic Theory March , 2014

Real Macroeconomic Theory May , 2007

Acknowledging Misspecification in Macroeconomic Theory

We explore methods for confronting model misspecification in macroeconomics. We construct dynamic equilibria in which private agents and policy makers recognize that models are approximations. We explore two generalizations of rational expectations equilibria. In one of these equilibria, decision makers use dynamic evolution equations that are imperfect statistical approximations, and in the ot...