Contrasting Visions for Macroeconomic Theory: DSGE and OEE
Abigail N. Devereaux and
Richard E. Wagner
The American Economist, 2020, vol. 65, issue 1, 28-50
Dynamic stochastic general equilibrium (DSGE) modeling remains the workhorse of contemporary macroeconomics despite a growing number of critiques of its ability to explain the aggregate properties of an economic system. For the most part, those critiques accept the DSGE presumption that traditional macro data are primitive, causal data. This leads to a stipulative style of analysis where macro variables are explained in terms of one another. In contrast, we set forth an open-ended evolutionary (OEE) framework for an OEE macroeconomics. Within this framework, systems data are not primitive, but are derived from prior microlevel interactions without any presumption that those macrolevel derivations reflect systemic equilibrium among the microlevel primitive sources of action. We explore some contours of an OEE framework by placing coordination games within an ecological setting where there is no agent who has universal knowledge relevant to that ecology of games. JEL Classifications : B40, C73, D51, D85, E02
Keywords: systems theory; macroeconomics; open-ended evolution; DSGE modeling; macroeconomics; ecological game theory (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:65:y:2020:i:1:p:28-50
Access Statistics for this article
More articles in The American Economist from Sage Publications
Bibliographic data for series maintained by SAGE Publications ().