The Possibility of Ideological Bias in Structural Macroeconomic Models

Gilles Saint-Paul

American Economic Journal: Macroeconomics, 2018, vol. 10, issue 1, 216-41

Abstract: An ideologically biased expert faces trade-offs in model design. The perceived model must be autocoherent—its use by all agents delivers a self-confirming equilibrium. Policy may be influenced by manipulating the Keynesian multiplier or the Phillips curve parameters. Ideological bias may arise in a way that resembles well-known historical controversies. A larger reported Keynesian multiplier is favored by more left-wing economists, as is a flatter inflation output trade-off. Some combinations of parameters must be truthfully revealed, illustrating the tight link between parameter identification and the scope for bias that is implied by the autocoherence conditions.

Date: 2018
Note: DOI: 10.1257/mac.20140154
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Related works:
Working Paper: The Possibility of Ideological Bias in Structural Macroeconomic Models (2018)
Working Paper: The Possibility of Ideological Bias in Structural Macroeconomic Models (2018)
Working Paper: The possibility of ideological bias in structural macroeconomics models (2011)
Working Paper: The possibility of ideological bias in structural macroeconomic models (2011)
Working Paper: The possibility of ideological bias in structural macroeconomic models (2011)
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