Arnold Kling  

Review Essay on Macroeconometrics

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A while back, I mentioned this essay by Jesús Fernández-Villaverde, which at the time was not on line. Now it is there. I think it gives a useful history and perspective on macroeconometrics. Note in particular his discussion of the unit root controversy, which recently surfaced on a number of blogs.

He also sent me a link to this essay. If you go back to my lost history essay, you will see my perspective, which differs from his second essay.

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COMMENTS (3 to date)
The Sheep Nazi writes:

You have on prior occasion made Ray Fair out as a figure of fun, but Hernández-Villaverde is quite respectful. Please to reconcile.

Barkley Rosser writes:

It also seems that the essay does not say all that much about the unit root controversy, certainly not enough to weigh in substantially on the arguments that went on in the econoblogosphere over the matter.

Mike Rulle writes:

Interestingly, I find a deep similarity between Fernandez-Villaverde's critique of "high modernism" in Macroeconomics and a similar, and I believe correct, critique of "global warming" theories. Both suffer from models which are virtually "meaningless" in the sense that there is little to no empirical capability to test the theories. In physics, string theorists suffer the same fate, but at least they seem aware of it. They also do not ask the rest of the world to spend or waste money/capital based on their wishes and theories alone.

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