Economists, incentives, judgment, and the European CVAR approach to macroeconometrics

David Colander ()

Economics - The Open-Access, Open-Assessment E-Journal, 2009, vol. 3, issue 9, pages 1-21

Abstract: This paper argues that the DSGE approach to macroeconometrics is the dominant approach because it meets the institutional needs of the replicator dynamics of the profession, not because it is necessarily the best way to do macroeconometrics. It further argues that this “DSGE theory-first” approach is inconsistent with the historical approach that economists have advocated in the past and that the alternative European CVAR approach is much more consistent with economist's historically used methodology, correctly understood. However, because the European CVAR approach requires explicit researcher judgment, it does not do well in the replicator dynamics of the profession. The paper concludes with the suggestion that there should be an increase in dialog between the two approaches. --

Keywords: Methodology; macroeconometrics; general to specific; DSGE; VAR; judgment; incentives (search for similar items in EconPapers)
Date: 2009
View list of references

Downloads: (external link)
http://www.economics-ejournal.org/economics/journalarticles/2009-9 (application/pdf)

Related works:
Working Paper: Economists, Incentives, Judgment, and the European CVAR Approach to Macroeconometrics (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:zbw:ifweej:7595

Access Statistics for this article

Economics - The Open-Access, Open-Assessment E-Journal is edited by Dennis J. Snower

More articles in Economics - The Open-Access, Open-Assessment E-Journal from Kiel Institute for the World Economy
Contact information at EDIRC.
Series data maintained by ZBW - German National Library for Economics ().