Noah Smith has an interesting post on the encouraging
further developments of the DSGE model which got me to thinking about my last post: I feel as if I come off strongly in favor of DSGE models. While I have a certain fondness for DSGE models (it was the first macroeconomic model I was able to modify and simulate to my own whims; and it's still influential in economic circles) I am completely aware of their limitations. What I do feel, however, is that Mark Buchanan did not address these limitations and, instead, attacked the model from a more populist viewpoint that adds little to the conversation of economic modeling.
No comments:
Post a Comment