1. Reacting to the Lucas Critique: The Keynesians’ Replies.
- Author
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Goutsmedt, Aurélien, Pinzón-Fuchs, Erich, Renault, Matthieu, and Sergi, Francesco
- Subjects
ECONOMISTS ,KEYNESIAN economics ,ECONOMETRIC models ,ECONOMIC policy - Abstract
The article informs that American economist Robert Lucas criticized Keynesian macroeconometric models for their inability to correctly predict the effects of alternative economic policies in his article "Econometric Policy Evaluation: A Critique". It mentions that the structure of an econometric model is based on relations that describe the behavior of economic agents. It also mentions that the behavior changes along with changes in the decisions of policymakers.
- Published
- 2019
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