New Approaches to Empirical Macroeconomics: ("Scandinavian Journal of Economics" - special issues)

Macroeconomics is frequently criticized for the tendency of theory to diverge from its empirical basis. Furthermore, the broad consensus about the proper way to carry out empirical research has all but collapsed, creating a number of rival schools and approaches which this important book presents. The book begins with Lawrence H. Summers' critique of over-rigorous demands for a theoretical base for empirical models. This is followed by Finn Kydland and Edward Prescott's argument for calibration and simulation, as typified by the real business cycle school, Graham Mizon's exploration of the Hendry approach and Edward Leamer's presentation of the Bayesian method of inference. Finally, Clive Granger analyses possible future developments in the nonlinear analysis of economic series and Kenneth Wallis and John Whitley survey actual model-building and use with particular reference to the Scandinavian economies.

Table of Contents:
Editors' Introduction: Svend Hylleberg and Martin Paldam (University of Aarhus) 1. The Scientific Illusion in Empirical Macroeconomics: Lawrence H. Summers (Harvard University 2. Comments: Nils Gottfries and Birgit Grodal (Respectively, University of California at San Diego and University of Copenhagen) 3. The Econometrics of the General Equilibrium approach to Business Cycles: Finn E. Kydland and Edward C. Prescott (Respectively, Carnegie-Mellon University and University of Minnesota) 4. Comments: Torben M. Andersen and Peter Englund (Respectively, University of Aarhus and University of Uppsala) 5. Modelling Relative Price Variability and Aggregate Inflation in the United Kingdom: Graham D. Mizon (University of Southampton) 6. Comments by Herman van Dijk and Gebhard Kirchgassner (Respectively, Erasmus University, Rotterdam and University of Osnabruck) 7. A Bayesian Perspective on Inference from Macroeconomic Data; Edward E. Leamer (University of California, Los Angeles) 8. Comments by Soren Johansen, Katarina Juslius and Schlomo Yitzhaki (Respectively, University of Copenhagen, University of Copenhagen, and Hebrew University, Jerusalem) 9. Developments in the Nonlinear Analysis of Economic Series: Clive W. J. Granger (University of California at San Diego) 10. Comment: Anders Westlund (Stockholm School of Business) 11. Large-Scale Econometric Models of National Economies: Kenneth F. Wallis and John D. Whitley (Both University of Warwick) 12. The Nordic and International Experience: i. Danish Experience with Macroeconometric Models: Ellen Andersen (University of Copenhagen) ii. Macroeocnomic Modelling: The Norwegian Experience: Adne Cappelen (Statistisk Sentrabyra, Oslo) iii. Macroeconomic Model Building in Sweden - An Incomplete Survey: Karl-Gustaf Lofgren (Umea University) iv. Empirical Work at the OECD and the Bis.: Palle Schelde Andersen and Wilhelm Fritz (Bank of International Settlements, Basel).