scholarly journals Maximum likelihood inference in weakly identified dynamic stochastic general equilibrium models

10.3982/qe331 ◽  
2015 ◽  
Vol 6 (1) ◽  
pp. 123-152 ◽  
Author(s):  
Isaiah Andrews ◽  
Anna Mikusheva
Keyword(s):  
Maximum Likelihood ◽  
General Equilibrium ◽  
Dynamic Stochastic General Equilibrium ◽  
Likelihood Inference ◽  
Equilibrium Models ◽  
General Equilibrium Models ◽  
Dynamic Stochastic

Prologue

2017 ◽  
Author(s):  
Lawrence A. Boland
Keyword(s):  
General Equilibrium ◽  
Dynamic Stochastic General Equilibrium ◽  
Price Adjustment ◽  
Equilibrium Models ◽  
Market Participant ◽  
General Equilibrium Models ◽  
Social Good ◽  
Dynamic Stochastic

This chapter briefly discusses three key articles about equilibrium attainment that were all published in 1959. These three articles are Kenneth Arrow’s ‘Towards a theory of price adjustment’, Robert Clower’s ‘Ignorant monopolist’, and George Richardson’s ‘Equilibrium, expectations and information’. These articles and their three different perspectives on equilibrium models will often be referred to throughout this book. The chapter then discusses three aspects of general equilibrium theories: the idea that a general equilibrium produces a maximal social good; the single behavioural assumption of neoclassical explanations (essentially the idea that every market participant tries to maximize); and the recent development of Dynamic Stochastic General Equilibrium models.

Equilibrium models intended to overcome limits

2017 ◽  
Author(s):  
Lawrence A. Boland
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Theoretical Models ◽  
Dynamic Stochastic General Equilibrium ◽  
Decision Makers ◽  
Equilibrium Models ◽  
Computable General Equilibrium Models ◽  
General Equilibrium Models ◽  
Dynamic Stochastic ◽  
Applied General Equilibrium Models

This chapter will critically examine today’s common ways to build equilibrium models. These specifically include Dynamic-Stochastic General Equilibrium models, game theoretical models and empirical GE models. Each of these types of equilibrium model try to address the issues of how a model’s decision makers get the information needed to guarantee the attainment of a state of equilibrium. The chapter addresses the alleged limits of general equilibrium models (particularly the issues of dynamics, time and expectations), the current attempts to overcome the limits of general equilibrium models, and three empirical alternatives to Walrasian general equilibrium models. These alternatives include the Computable General Equilibrium models and the Applied General Equilibrium models. The third model involves building econometric models only after evaluating the statistical properties of the data before using them in the model.

On the Validity of the Theoretical Bases of Inflation Targeting and New Keynesian General Equilibrium Models

2012 ◽  
pp. 22-36
Author(s):  
J. Plushchevskaya
Keyword(s):  
General Equilibrium ◽  
Inflation Targeting ◽  
Dynamic Stochastic General Equilibrium ◽  
New Keynesian ◽  
Equilibrium Models ◽  
Macroeconomic Policies ◽  
Policy Regime ◽  
General Equilibrium Models ◽  
Developed Economies ◽  
Dynamic Stochastic

The latest world economic and financial crisis highlighted problems in macroeconomic policies pursued by developed economies as well as the necessity of searching for an effective regulatory framework. In particular, doubts have occurred in the indisputability of advantages of inflation targeting and its theoretical basis: the New Keynesian dynamic stochastic general equilibrium models. The reason for doubts lies mainly in the lack of confidence in the new neoclassical synthesis propositions which form the basis for the modern monetary theory and structural modelling. The article reveals close links between contemporary mainstream economics, inflation targeting and New Keynesian dynamic stochastic general equilibrium models, concentrates on controversial points of the theory which bring into question applicability of the monetary policy regime and the models, and finally, outlines further research agenda.

Sign in / Sign up

Export Citation Format

Share Document